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Investing in Latin America: Argentina or Columbia

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Added on  2020-03-15

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The total GDP of Latin America in 2015 was USD 5.3 trillion (World Bank 2017), main export being agricultural products and natural resources, like petroleum, iron, copper etc. 1.0 Introduction 3 2.0 Comparison of the countries 4 2.1 Economy of Argentina 4 2.2 Economy of Colombia 5 2.3 GDP comparison of the two countries 52.9% 3.0 Competitive advantage 6 4.0 Recommendations 9 5.0 Conclusion 9 References 11 Appendix 13 1.0 Introduction Latin America is defined as the group of nations in the two continents of America, with a predominance of

Investing in Latin America: Argentina or Columbia

   Added on 2020-03-15

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Running head: ECONOMICS 802Investing in Latin America: Argentina or ColumbiaName of the Student:Name of the University:Author note:
Investing in Latin America: Argentina or Columbia_1
1ECONOMICS 802Executive summaryLatin America consists of many nations, which are mostly developing or underdeveloped. Thelevel of economic complexity varies across the nations. The economy of Latin America is mainlyexport based. The total GDP of Latin America in 2015 was USD 5.3 trillion (World Bank 2017),main export being agricultural products and natural resources, like petroleum, iron, copper etc.Argentina and Columbia are two major economies of Latin America. In terms of economicgrowth and size, Columbia was larger than Argentina in 2014 (weforum.org 2016). There arehuge opportunities for investment in these countries. In the last two years, the economy ofArgentina has recovered significantly and the currency also strengthened due to business friendlyreforms by the current government. On the other hand, the domestic demand in Columbia wasweek in the past years. It has not fully recovered. However, there is a scope for improvement inthe economy if investments are increased and properly channeled. The following report exploresthe development path of the two countries of Latin America, their competitive positions andmakes recommendation on the choice of investments to be done.
Investing in Latin America: Argentina or Columbia_2
2ECONOMICS 802Table of Contents1.0 Introduction................................................................................................................................32.0 Comparison of the countries......................................................................................................42.1 Economy of Argentina...........................................................................................................42.2 Economy of Colombia...........................................................................................................52.3 GDP comparison of the two countries...................................................................................53.0 Competitive advantage..............................................................................................................64.0 Recommendations......................................................................................................................95.0 Conclusion.................................................................................................................................9References......................................................................................................................................11Appendix........................................................................................................................................13
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3ECONOMICS 8021.0 IntroductionLatin America is defined as the group of nations in the two continents of America, with apredominance of Portuguese and Spanish. The group consists of many countries with varyinglevel of economic condition. Until 1980s, the economy of Latin America was mainly based onthe economic policy of import substitution. This policy had helped in the growth of the domesticeconomy and domestic businesses. However, this policy also reduced the internationalcompetitiveness of the domestic industry and increased the debt crisis of the nations. By 1990s,the continent switched to free market economy system. This resulted in reducing the debt crisisand established the industries of agriculture, mining and forestry (Oecd.org 2015). Among the nations, Columbia and Argentina are two biggest economies in LatinAmerica. Both the countries have demonstrated growth prospects and economic scopes. Theeconomy of Argentina is the third largest in the Latin America and second largest in the SouthAmerica. The economy is based on a rich source of natural resources, high level of literacy,export based agricultural industry and diversified industries. On the other hand, Colombia is justbehind Argentina in the rank of largest economies of Latin America. This is also export basedeconomy, petroleum being the major export product, followed by manufacturing(reports.weforum.org 2015). The investment decision on any economy depends on many factors. Majorly themacroeconomic factors of a nation influence the investment decisions. The element of politicaland economic uncertainties, stock of capital and other resources, income level of the country,level of liquid asset, aggregate demand, population growth, government policies, and many sucheconomic factors determine the level of domestic and international investments in the nation.Hence, while making an investment in a nation of Latin America, the choice of the nation
Investing in Latin America: Argentina or Columbia_4

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