Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Mounting Inflation in Argentina Threatens Business Environment - Research Paper Example

Comments (0) Cite this document
The author of this research paper entitled "Mounting Inflation in Argentina Threatens Business Environment" casts light on understanding the concept of hyperinflation quoting definitions from various sources and substantiate to explain the term in total. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.5% of users find it useful
Mounting Inflation in Argentina Threatens Business Environment
Read TextPreview

Extract of sample "Mounting Inflation in Argentina Threatens Business Environment"

Download file to see previous pages Argentina has had periods of hyperinflation and controlled inflation and recoups after these bouts. This is explained with relevant data and pictorial graphs in order to bring out a clear understanding of the concept. Hyperinflation in any country is the result of careless monetary policies and the balance of imports and exports, and the mismatch of demand and supply factors. A country that slips into a period of hyperinflation experiences a rough economy in addition to the heavy economic downturn and in the end resulting in currency devaluation.
According to the banking dictionary Hyperinflation is explained as an "Economic condition characterized by rapidly rising prices of freely traded goods, and declining purchasing power, threatening economic stability and ability to repay External Debt the term usually is applied when consumer prices are rising at rates in excess of 50% per month, particularly in developing countries. While we do have many definitions and perceptions about hyperinflation let us first understand the term Inflation. In an article published by the department of the Economics Wilfred Laurier University of Canada, "Inflation is generally defined as a sustained increase in the cost of living. While there exist a myriad of indicators of the cost of living in most countries, inflation is usually thought of in terms of a consumer price index (CPI)." Moreover is further explained inflation as "An understanding of inflation and its causes is vital since continuous increases in some indicator of the cost of living simply a concomitant fall in the purchasing power of money. In other words, a given quantity of currency is able to command fewer quantities of goods and services as prices rise."(Pierre 2000) Finally, inflation is the rise in the consumer prices and the percentage of this rise if exceeds over 50% a month is hyperinflation. Most of the hyperinflationary conditions have risen across the Globe after the Second World War. Brazil and Argentina had an average monthly increase of 68.6% and 66% respectively. However, economists commonly agree that Germany's economy was the worst affected due to Hyperinflationary conditions during the Second World War. The recent global financial meltdown has given rise to many questions about hyperinflation across the Globe and how long it would last and whether this would give rise to another Great Depression 2. In an article by Global Research, the International forecaster of Bob Chapman predicted Inflation rates; US at 12.5% ,China 8.5% The Gulf an average of 12% ,Russia at 14%, India at 8%, Indonesia 12%, Brazil at 5%, Chile 8.3%, and Argentina at 23%. (Lendman 2008) The figures are just a global forecast of which Argentina the highest note that Brazil has managed to emerge out of its hyperinflationary condition and is well on the road to recovery.
History of Argentina's Inflation: Just to give a glimpse of the Argentine Inflation picture. Hyperinflation picture rather news from the Argentine post the average annual inflation rate in Argentina between 1965 and 1989 was 284%, according to a 1992 research paper archived by the National Bureau of Economic Research. According to this paper by Nobel Prize-winning economist Gary Becker, inflation surpassed 1,000% in both 1989 and 1990. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(Mounting Inflation in Argentina Threatens Business Environment Research Paper, n.d.)
Mounting Inflation in Argentina Threatens Business Environment Research Paper. Retrieved from
(Mounting Inflation in Argentina Threatens Business Environment Research Paper)
Mounting Inflation in Argentina Threatens Business Environment Research Paper.
“Mounting Inflation in Argentina Threatens Business Environment Research Paper”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Mounting Inflation in Argentina Threatens Business Environment

Critique of the article Overpopulation threatens the environment

... English 02 April Critique of the Article, “Overpopulation Threatens the Environment,” by Cascadia Gedden If oneexamines the history of human evolution, it amply transpires that this species demonstrates a tendency of considering planet earth as their exclusive property. Every single action of humans illustrates their utter disregard for their environment and the other living beings that inhabit the earth. In this context, the essay, “Overpopulation Threatens the Earth,” by Gedden Cascadia assumes great significance in the modern day, when most of earth’s resources are being drained off due to over consumption by humans, which threatens the very sustainability of the environment. The author brings to fore a grave problem that faces...
3 Pages(750 words)Essay

PV Mounting System

...? PV Mounting System Lecturer Photovoltaic (PV) Mounting System The mechanical mounting system for the Photovoltaic (PV)System will be designed for: Maximum PV performance; Low cost; Durability; Ease of installation; Portability; and Security of the PV system Concept Generation Concept generation is aimed at coming up with a suitable mounting system based aforementioned design criteria. The concept generation strives at pinpointing the best mounting system to adopt, the best material to use and the security system to be employed to fulfill the design criteria already mentioned. PV Mounting There are two distinct methods of mounting PV solar systems, which enable installation of systems in different locations depending on systems energy...
6 Pages(1500 words)Dissertation


... Task: Argentina Argentina has a rich history of the political upheavals in the nineteenth century. The country acquired autonomy from Spain that was their colonial master. Their independence came after their military confrontations with the Spain army under the leadership of Jose De San Martin. However, true formation of the Argentinean nation began after their independence that was a period marred with civil wars. It was during this time that Juan Manuel de Rosas came into power. He was born into a family that had wealth and power (Sarmiento, Mann & Stavans 7). The leader of grew up on the estancia in the province of Buenos Aires. Rosas led the Argentinean nation for 17 years from 1829 to 1852. Most historians describe his rule...
3 Pages(750 words)Essay


Inflation is defined as the rise of the level prices of goods and services in a given economy over a certain period of time. In the event of an inflation or the rise of prices of goods and services in a given economy, the purchasing power of a given currency is diminished to the effect that it will now require more units of money for the same goods and services purchased or the number of goods and services purchased with the same amount of money is reduced. In effect, inflation is the loss or the diminishing of value of money in a given economy (Blanchard 45). In plain language, inflation is the instance where goods and services get expensive or the phenomena where people complain that the price of commodities is rising. Concretel...
3 Pages(750 words)Essay


... and services rise. Any source of cost to businesses is also a source of increase in rise in prices. Cost to producers and sellers are transferred to buyers partially or wholly and they through rise in prices. Figure 2: Demand Pull inflation (Source: P. J. Welch and G. F. Welch, 2009) Upwards pressure is created on prices if costs of labour, fuel, raw materials and other factors of production rise. At times firms’ attempt to enhance profit in certain industries increases prices and creates inflationary pressure (P. J. Welch and G. F. Welch, 2009). Inflation in UK Between 1989 till present (2013), inflation rate in the UK averages at 2.81%. In May 2013, the inflation rate was 2.70% (Trading Economics, 2013). The inflation rates between 2011...
6 Pages(1500 words)Essay

International Business - Inflation

...1) Inflation means a sustained increase in the general price level in an economy. The recent debate in leading newspapers and magazines of the world is about the rising food prices and its impacts on the poor nations. The debates are now driven by the soaring oil prices and rising commodity prices. The central banks of Canada, EU and US are seeing increasing inflation as a worrying sign however, Canadian Political leaders seems not to worry much about it as compared to the political leaders in US and EU. Overall concern is shown less for the inflation within the country as compared to inflation and its impacts on the poor nations. However inflation in rest of the world is seeing with great skepticism. Many political leaders view...
2 Pages(500 words)Essay


... 21 March Importance of Price Stability in an Economy with respect to Inflation and High Rising Prices No consumer on this planet would like a situation of dealing with fluctuating prices with respect to the goods and services sold in the market. Stable prices eliminate all kinds of doubt and confusion on the part of the customer, while making it important for the producer to fix his costs and bring about cost effectiveness while trying to retain a certain amount of profit. In an economy, general price levels when stable are of keen interest to the consumers, thus. However, actual price stability refers to a situation when the prices of the goods and services do not change for a prolonged period of time. The general price level remains...
6 Pages(1500 words)Essay


The markets had assumed that the debt by Euro zone was safe. This made the investors think that all members thereby making them willing to maintain debts even at low interest rates despite countries including Italy and Greece having high debt levels had backed them. After the credit crunching, the investors began being to be more skeptical about the European finances. The other unfortunate occurrence was that the European Union had no strategies in place to deal with the sudden panic. The diagram below shows some debt from Selected European countries between 2007 and 2010.
Pettinger on the economics journal of October 2011, tried to analyze the Euro economic crisis critically where he applied a single currency meant that sever...
5 Pages(1250 words)Literature review

Business Ethics in the Case of Timberland-City Year

The purpose of this study is to focus on the ethical considerations and dilemmas faced by the organization Timberland in terms of its coalition to City-Year and the steps that are taken and should be taken for the solution of those ethical issues.

In the merger of the two organizations, Timberland and City Year, there are many ethical considerations. To develop legal business relationships between Timberland and City Year and to consider the stipulations of the required business laws, the following ethical considerations should be deemed:
  • None of City Year’s earnings should be incurred to any private shareholder or an individual.
  • City Year cannot participate in any political campaign or...
6 Pages(1500 words)Case Study

The Management, Leadership and Teamwork Competencies Required by a Small Business Owner

On the other hand organizational leadership is defined as the ability based on the specific skill of an individual to lead his/her subordinates in a manner that pre-planned organizational goals could be achieved within the defined time-frame.

According to Burns (1978) and Bass (1985), transformational leadership has a set of category constructs such as values, morals, farsightedness, long term goals, principles, acute awareness about the dividing line between causes and symptoms, mission statements, strategic perspectives, and human resources. Similarly, they identify a set of category constructs in the transactional leadership also. For instance concentration on the task at hand, short term goals and tactics, confusion co...
6 Pages(1500 words)Coursework

The Development of International Business in Argentina

...The development of International Business in Argentina Executive Summary Markets of Argentina are flooded with agents, associates and distributors who act as intermediaries for foreign businesses. In spite of unique economic, demographic and cultural diversities compared to other Latin countries, the small scale and supporting industries have well accompanied themselves with the nation’s development in providing the required support functions across sectors to promote international business. The economy has a strong buyer spending and fixed investments. Introduction One of the most diversified and the richest among the Latin countries, Argentina enjoys a varied natural resources that joins together to make the economy industrially...
11 Pages(2750 words)Case Study

Business Information Systems

... much for children, young professional, college students, tourists, and business travelers. As we talk about the environment of Club IT that is designed in a very good way with High ceilings, live music, dance floor and energy lighting. Here we can eat and drink watch move and lot of other entertainment (Case Study). Current Technology Structure of Club IT This section is about the present technology structure at Club IT. In the present structure they have small computer based database system, a small Internet, security system and small other IT based structures. They have main IT equipments that comprise a Computer and a printer, Software, Modem, Photocopier, Fax Machine, Postage Scale and Meter and Paper Shredder. The communication...
8 Pages(2000 words)Case Study

Business Administration

...Master Business Administration – Pre Admission Essay Please describe your main interests and leisure activities, and any other experiences or involvement that has significantly influenced your career or personal development. 100 Words I was born in India where Cricket is played across the country. I received my inspiration and motivation to play this game after India won the 1983 World Cup Championship. I have played this game representing my school and college in various tournaments. During my leisure time I watch the television. The channels that I generally watch are the sports, movies, and entertainment ones. I also have an interest in the technological gadgets. During my childhood, computers were the only gadgets which influenced me...
6 Pages(1500 words)Essay

Ethics in the Manufacturing Environment

An ethical scenario arose during my first six months in this management role involving a 21-year-old employee who I witnessed smoking pot in the parking lot over lunch break. This scenario demanded that I consider the needs of the employee, as well as satisfying my obligations for enforcing the strict drug use policy administered at the senior levels of the company. This project describes the ethical scenario in detail, offering personal reflections on the incident as well as suggesting an ethical framework for handling situations like this in the future.
The situation which occurred had a young worker smoking pot on his lunch break on the company grounds. This, according to policy, is a termination offense and it is expected...
7 Pages(1750 words)Case Study

Business Plan Real Estate Agency

re representing our company as their business consultants and our responsibilities are limited to the knowledge of the client’s business and information provided by the client.
The company Of-Fit has been operating as office supplies and equipment supplier since 1998. Their corporate office is in Aberdeen and it has excellent industry relations. The company is a sole proprietorship and its owner is Mr. Andrew Schwatz who has been working in the industry for more than 20 years. The company current staff is 8 and its revenues are £115,690 and £156,178 in 2008. The company aims to expand its operations in other business areas and regions of the UK.
The detailed business plan developed for this report incor...
12 Pages(3000 words)Business Plan

The Main Threat to Small Business

When it comes to reliability factor big businesses are able to sustain because of their track record. Big businesses are able to pacify their customers using their past successful track records.
Nowadays most of the business opportunities and orders are posted online. This means that business providers need to be well integrated with supplier systems through online facilities. The infrastructure of the business model needs to be updated. But this is not an easy task for small businesses. E-based procurement is possible only with a well-maintained network on the internet. This requires a lot of financial and technical necessities which could not be supported by small businesses. On the other hand, Big businesses are well equip...
8 Pages(2000 words)Assignment

Business Sustainability and Society: Coca-Cola Company

..., 2000). This theory discouraged the notion of self-interest while promoting every individual to act as a means of charity. Analysis from the point of view of Kant’s deontology (Furrow, pp. 79-88, 2005) indicates that Coca-Cola has been very unethical in its actions. All the practices discussed earlier in the paper were universally inappropriate and adverse for farmers and their families, as well unsustainable for the whole environment that became the victim of Coca Cola’s bottling plant in Kala Dera, and several other villages in India. Conclusion In conclusion, it is an observation that only one ethical theory showed ethical status of Coca Cola’s business practices in India, whereas, the other two regarded them as unethical. Personally...
10 Pages(2500 words)Case Study

International Business: World Economic Forum and Davos 2010

While each force of globalization is important, the technological revolution has impacted the business models, value creation and differentiation (Spelman, 2010). The cloud computing technologies that have made the popular social networking applications possible are now being applied to development, healthcare, and society. Today mobile telephones are more like powerful computers that take care of many of the societal challenges facing both developed and developing countries (Evans, 2010). In Chile, new software enables weather information to farmers who can now make informed decisions on when and how to sow or harvest the crops. However, the fear or ignorance of cloud computing technology could harm the chances of the SMEs becomi...
7 Pages(1750 words)Coursework

Globalization and Business Enterprise: Climate Change

Since globalization encompasses political, economical and environmental issues, there has been much debate amongst companies on how resources are to be allocated in order to minimize climate change. Climate change is being dealt with on a global scale. The “Green investing is on the rise”, where investors are buying stocks that are environmentally friendly. New Zealand, like other countries, is supporting the cause for environmental protection by legislative measures in trade, bills regarding carbon emissions and by being part of agreements with the UN and the Kyoto Treaty.

Climate change and globalization are intricately linked. With the passage of time, many environmental issues, like global warming, have...
6 Pages(1500 words)Coursework

The Business Environment in Argentina

... The Business Environment in Argentina Introduction Global business environment is the prevailing business condition in any sovereign country that may influence decision making on use of resources and capabilities (De Soto 5). Global business environment exists in both internal and external environments. These may include legal, regulatory, tax, cultural, technological, social and political environments. For any multinational company to function effectively it must understand the business environment in the host country. They have to get acquainted with the language and cultures of the country they are operating in. Firms do not have control of the external business environment. This in essence means they have to adapt to the external...
6 Pages(1500 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic Mounting Inflation in Argentina Threatens Business Environment for FREE!

Contact Us