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ublic sector reforms, capital movement, and trade liberalization along the 90s, which projected the nation’s progress as the globalization model of economic success. Fortunately, despite the Mexican crisis in the mid of the 90’s, Argentina experienced high GDP growth and income level, but its economy could not avoid the increasing inequality and unemployment levels, and later billions of public debt and uncompetitive currency level.
Thesis: This document brings out and elaborates the consequences of the economic globalization of Argentina’s finance, trade and labor since the 1990s. It argues that poorly controlled economic integration with the global economy contributed to the financial strain, collapse of fixed exchange rate system, high unemployment, labor market disruption, and weak currency that affected households and domestic activities.
During the 1990s decade, Argentina was an example of many emerging countries that applied the multiple policies to reform its economy. The set of policies called the Washington consensus and implemented through the IMF and World Bank, changed the exchange rates, foreign direct investment and the financial liberalization of Argentina (WHO who.int). First of all, the IMF cannot escape the role it played in contributing to the 2001 financial crisis in Argentina, after a decade’s involvement in advising and financing Argentine’s economic programs. Second, the Argentine government made serious mistakes in its fiscal policies, which all ended up in high sovereign debt and bankruptcy, after a period of pegging the peso to the US dollar and excessive borrowing. Argentina later entered the debt trap in 2001 with no rescue from the IMF, which affected the jobs in the service and banking sector the most. With the previous economic growth, Argentina had an increasing number of middle class working populations. Despite the persistent increasing unemployment over the decade, the nation experience of job loss was intolerable for
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The author, however, dismisses this irony saying that in these cases, poverty had come first and so, the inequality cannot be attributed to globalization. The author believes that this inequality can be overcome with "responsible leadership" along with a "healthy dose of imagination", clubbed with globalization.
This essay mainly focuses on determining certain sets of economic policies, conducted by Argentinian government in the early 2000s, that contributed to the cessation of the economic crunch. On the economic front, the government abandoned convertibility, encouraged industrial reactivation, and introduced price control measures.
Globalization, Its Significance to Challenges of Development and Key Debates. Globalization and related development were considered as the wave of the future when they first appeared to unite countries into one global economy for the mutual benefits, which presumed global integration and interdependence in the technological, economic, social, cultural, ecological and political spheres.
Economists described the 1998-2002 Argentina’s economic meltdown as one of the worst economic period that Argentina has ever faced over the last one hundred years. Fiscal policies usually influence financial stability of a country. Financial collapse witnessed in Argentina was a set back to the countries economic growth.
Globalization is a widely discussed topic in the contemporary world. It is a term that gained popularity in the 1980s and refers to the increased mobility of people and goods across national and international borders that result to improved cohesion across the globe (Lynch 7).
The author believes that nationalization of Argentinian oil industry has raised many concerns not only in Argentina, but also in other countries, especially in Spain. Spain has already declared a diplomatic and industrial war with Argentina since the major sufferer of this act happens to be the Spanish company; Repsol.
Globalization is seen as a process involving interchange of world views through interaction and integration of all the individuals of different part of the world. It also refers to the effect of two or more things that come together for some time; this is mostly witnessed in human being’s behavior involving movement from one place to another.
This may according to many lead to the dissolution of national identities and macro influences on the state and the economy tending towards a worldwide convergence towards a single system. (Weiss, 1997 , see Reich, 1990; Cable, 1995).
The concept of the 'global' corporation has been captured in the following phrase 'It has been preceded in the last 30 years by a string of synonyms such as: international, inter-territorial, multinational, transnational, and world-wide' (Weiss, 1997 see Hu, 1992: 120).
The country so chosen to explain and analyze a macroeconomic scenario during hyperinflation is Argentina. Argentina, because it is a country that tops the list in hyperinflation during the 20th century. The country has had periods of hyperinflation and controlled inflation and recoups after these bouts.
her hand, economic globalization refers to the increased linkage between livelihoods as well as development of services and products on a global level.
There is a lot of subjectivity about the concept of economic globalization and there is no universally acknowledged concept as
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