Political Science

Our company will produce EV cars with Lithium EV batteries. The demand for such vehicles is high as the world moves to products which are environmentally friendly. The headquarters of our company will be located in the United States with a subsidiary in Argentina. The reason for locating a subsidiary in Argentina is that the country has an abundance of lithium which will be used for developing lithium EV batteries. The benefit of the location is that it will reduce transportation costs as the lithium will not have to be imported. There is also availability of cheap labor in Argentina and the nearby areas reducing production costs even further.

Overview of Argentina
The country Argentina is located in the Continent of South America near Brazil and Chile. It stretches 4000 km and has a terrain of Andes mountain ranges, swamps and the plains of Pampas with a long coast line. The country is rich in resources such as lithium. Argentina has an educated workforce, an agricultural orientation and a diversified industrial base.

During the 20th century, the country has suffered from a boom and bust economic cycle which has led to most of the people falling under the poverty line. In 2001, the country was hit with an economic recession as a result there was currency devaluation and debt defaults in huge numbers. In 2003, the country was working towards recovering with the help of the IMF.  (BBC, 2010)

The population of Argentina is sound 40.2 million people, the capital is Buenos Aires and the language spoken is Spanish. The religion that is practiced in the country is Christianity. The per capita gross national income is 7200. The countrys main exports are food, livestock, mineral fuels, cereals and machinery. The President of Argentina is Cristina Fernandez, who won the first presidential election in 2007. The country has been subject to military dictatorship in the past. (BBC 2010)

Political and Legal Environment
The major political parties in the country are justicialista, formerly known as the peronista party, and the radical party. Both parties are known to maintain clientelistic relations. The country adopted a new constitution in 1994. According to this constitution there are three branches of the government executive, legislative and the judicial. The judicial branch has two houses, the house of the senators and the house of deputies.

The country has its own police force which is meant to curtail crime but the perception of the people is that the police force is prone to corruption. The police force comes under the Justice and Security Ministry. Many people think that the police force is also a cause of the criminal problem that the country is facing. The extent of this problem is that many at times, the citizens have had to kill criminals in robbery attempts.

Argentina has also been subject to military dictatorship and there have been times in history when the military has taken over the country. But when the military lost the Falklands to the British, they lost support of the public and the country went back to democracy in 1983. (Every Culture)

Economic Environment
After the 2001 economic recession, the economy has been doing well. For the next five years after the recession, the real growth has been a consistent 8 per cent. In 2008, this figure dropped to 6.8 per cent because of domestic and international factors. Also, after the recession, poverty had reached to 50 per cent but has dropped to 15.3 percent in the largest urban areas.

The country has experience high growth after 2001, specifically in the years 2003-2007 because of a floating exchange rate regime, a boost in the domestic demand because of monetary, fiscal and income distribution policies, and favorable international commodity prices and interest rate trends.

The year 2009, has not been so good for Argentina. The global economic environment has led to a decline in the growth rate that was being experienced by the country. The exchange rate of pesos with the dollar in September 2009 was, 3.87 pesos per dollar. Another major contributor to the growth rate in Argentina was the foreign trade. Foreign trade has contributed approximately 39 of GDP in 2008. The exports contribute approximately 22 of GDP in 2008.

Currently in Argentina there are 500 U.S. companies which are operating. These companies employ over 155,000 workers. To repay the debts to the Paris Club, the President has announced that the Central Bank reserves will be used. Also, the Government is launching a debt swap of up to ARS8.3 billion in inflation-linked debt for a new 2014 floating rate bond.( Bureau of Western Hemisphere Affairs, 2009)

Cultural Issues
The people of Argentina are a mixture of diverse national groups. Many people have Spanish or an Italian background. But this is not the extent of the diversity found within the country. People from Syria, Lebanese, and other Middle Eastern areas came and settled here in the late 19th and early 20th century.

Although majority of the people in the country are Christians but the country also has its share of Jewish people. The two things that join the nation together are football and tango. Football has been promoted by the government as a sport. Food is also a cultural symbol of the nation.

The three classes that exist within Argentina are the upper class, the middle class and the lower class. The middle class is the largest in number and was formed by people who came to the country in the late 19th and early 20th century. The upper class can be easily identified by their expensive imported clothes. The social class a person belongs to is easily identifiable by the speech and the body language.
Argentina does have its share of discrimination. Women are not allowed to succeed to some positions and their power in society is limited. Initially, Argentina allowed the father to have more authority over the children but this has changed and equal authority is granted now.

Argentina is a mixture of cultures, i.e. it is a multicultural society and faces the same problems as any other multicultural society would. There are some language barriers as no program is offered to teach the bilingual students. (Every Culture)

There are problems between the immigrants and the Argentineans. The politicians like putting the blame on the immigrants for the increase in criminal activity, even though the statistics prove that the immigrants were not involved. (Human Rights Documentation Center 2001)