| Building Business Relationships | | | | Buenos Aires is not just a Spanish city, but |
| | | | also has strong traditions inherited from |
| Business meetings in Argentina need to be | | | | Italy, Germany and Eastern Europe. After New |
| carefully scheduled, with agreed agenda | | | | York, it is the city with the largest Jewish |
| points. Be sure that meetings lead to action, | | | | presence in the Americas. |
| as Argentineans traditionally see them almost | | | | |
| as social occasions. | | | | However, it is extremely important not to |
| | | | confuse Buenos Aires with the whole of |
| Also allow time for meeting Argentine | | | | Argentina. Although a third of all Argentines |
| contacts outside business hours. A less clear | | | | live in greater Buenos Aires, the Argentine |
| cut distinction is made between work and | | | | interior is very different with more |
| leisure and the most profitable time with | | | | traditional ways and a greater presence of |
| Argentine business people is often spent | | | | mixed race and indigenous traits. |
| outside the office or factory in restaurants | | | | |
| and at barbecues. | | | | Do remember that Argentina is not to be |
| | | | confused with the rest of Latin America. The |
| Care must be taken to distinguish between | | | | 35 million Argentines are as different from |
| what Argentine firms offer to supply and what | | | | Mexicans as British are from Russians. They |
| they actually deliver. Argentina shares the | | | | share the Spanish language, but often even |
| Latin American custom of not wanting to say | | | | that is spoken quite differently. |
| no, meaning that it will be up to you to | | | | |
| assess whether or not they can deliver on | | | | The Business Environment |
| their promises. | | | | |
| | | | Argentine industry and business has been |
| It is important to ensure you give the | | | | going through a process of great change in |
| impression that you are committed to | | | | the 1990s. After being protected and |
| investing and doing business in Argentina for | | | | inward-looking for many years, Argentine |
| the long term, not just on a one-off | | | | companies are only now beginning to learn |
| occasion. This helps break the vicious circle | | | | that they must compete nationally and |
| of unfulfilled promises on both sides. | | | | internationally. |
| | | | |
| Government and Law | | | | Many local companies contain a mixture of the |
| | | | traditional and the modern - they are often |
| Argentines are very proud of the fact that | | | | family run and likely to have many more |
| Argentina now has a working democracy. | | | | typewriters than functioning computers! |
| However, particular care needs to be taken in | | | | |
| any dealings with government officials. | | | | Much of the Argentine industry is still based |
| Argentina still has a huge amount of | | | | on agriculture and agricultural products. |
| bureaucracy and dealing with this takes a lot | | | | Companies involved in heavy industry, such as |
| of time. Corruption at all levels of this | | | | automobile manufacturing or construction, are |
| bureaucracy is still rife. | | | | largely foreign owned. |
| | | | |
| Remember to enlist local expertise for legal | | | | Do take note of the fact that Argentina is |
| matters. Due to the recent changes in | | | | now a dynamic part of MERCOSUR regional |
| business as well as the many years of | | | | grouping of countries. (The other members are |
| government control of industry and commerce, | | | | Brazil, Paraguay and Uraguay). Argentina |
| it is often difficult to find the best and | | | | hopes to supply the technologically |
| most appropriate way to conduct business. | | | | sophisticated part of this market, as it |
| | | | cannot generally compete with Brazil in terms |
| It is not advisable to raise the subject of | | | | of scale. |
| military government and be very careful to | | | | |
| avoid the topic of the Falklands Islands as | | | | The business environment in Argentina was |
| almost every Argentine is convinced that they | | | | thrown into turmoil at the end of 2001. After |
| should have sovereignty over the islands. | | | | a decade of economic stability, with one |
| | | | Argentine peso valued at one US dollar, this |
| Argentinian Heritage | | | | exchange rate was abandoned, and the local |
| | | | currency left to float freely. This caused a |
| Argentina is very proud of its European | | | | massive withdrawal of capital from Argentina, |
| heritage. Most of the population, especially | | | | and this provoked a banking and financial |
| in the capital city Buenos Aires, have | | | | crisis. Long-term planning became extremely |
| ancestors who immigrated to Argentina between | | | | difficult, and the outlook for foreign |
| the end of the 19th century and the middle of | | | | investment is very uncertain. Extreme caution |
| this century. | | | | is advised, as the economic uncertainty is |
| | | | likely to last for many months. |