Problem
If I want to sell apple products in Argentina, what do I have to take into account regarding this question?
1. List and describe all factors that might affect demand for the product, import controls, trade data and agreements, and foreign exchange information.
2. List strategies you would use to thwart factors that will negatively impact product sales or when establishing a business in Argentina. Discuss how Argentina's economy operates (e.g. central bank intervention, mode of currency, bank loans, inflation). Explain how can we would hedge against exchange rate risk. Explain why the strategy will be effective.
3. Does Argentina country engage in blocking funds? What are the tax rates (e.g. income, corporate, property tax)? What are the current spot and forward rates? Does an IFE exist? What is the interest rate on loans? What rate of return does the country pay on its treasury bonds?
4. Can we be affected by transactional, translational, or economic exposure? What is your strategy to mitigate the impact of these exposures?
5. Assess Argentina's balance of payments. Is it in a deficit? What are its major imports? Exports? Where does it need improvement? What are its most valuable resources?
6. Use the information you gathered to do PESTLE analysis, and focus the PESTLE analysis on social responsibility. What issues is Argentina facing that are related to our business? How do our product and subsidiary plan on incorporating social responsibility practices in the community in Argentina? Examples of factors to consider are climate change, healthcare, education, food, poverty, etc.