This week, you need to refer again to the economic data of the country you chose and relate it to week 3’s material. Specifically, you need to respond to the following questions: 1. What is the country’s unemployment rate? How does it compare to the United States’ unemployment rate? Are they better off or worse off than us? 2. What is the country’s currency? What is the exchange rate with the dollar? Does it have a floating or fixed exchange rate, or does it use the dollar as its currency? 3. Who are its’ main trading partners? Is foreign investment important for them? Does the country have a trade deficit or surplus? What percent of the GDP are exports? (you can just divide the value of exports by the GDP). 4. Using the information about unemployment, inflation (Week 2 report), and trade, what is your general assessment of the country? Are they experiencing stability and growth or an economic crisis? Please use your own words. Each week your post must be in a report format, not in a Q&A format. So remember to use paragraphs and a report structure to your post. ————————— 1) Your research paper this week should be between 250 and 350 words. Shorter submissions will be penalized. Longer posts are acceptable only if the extra words add substance to your report. At the bottom of your post, you should include a word count (how many words are in your post). 2) Structure your paper as a report. Do use multiple paragraphs. Do NOT attach your report, instead type it into the text box on the research assignment board. 3) You must cite all the information used in your report and include the sources in your reference listing. Use APA format for citations and references – see the APA Powerpoints linked below. 4) Remember: you should not “copy and paste” information. Plagiarism is penalized with a zero in the assignment the first time, and a zero in the course the second time. Use your own words and quote only facts or numbers. 5) Remember to include citations to your sources in the body of your post and to provide the references at the end of your post. Where possible, please make the links to any web information clickable links. Remember the references and links must be to the article you used, not just to the web site. Be sure to include the full URL, otherwise your link will not be clickable. 6) If you choose a country already selected by a classmate, it is perfectly fine, but you cannot plagiarize your classmate’s work. That would get you an automatic zero in the assignment. ————————— Wikipedia CIA World Factbook World Bank

 

Argentina economy

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Argentina economy

Unemployment rates

Currently, Argentina’s unemployment is at 8.7% which is a decrease of 0.5% from the first quarter 2017. The unemployment rate in Argentina is high compared to that of the United States that is at 4.2%. The rates in Argentina are high due to the unskilled workforce. Unskilled personnel cannot secure jobs in the growing economy thus limiting their participation. Development of technology has replaced human labor with machinery and other software.

Argentina labor cost is very high that’s why employers cannot afford to pay salaries (Ball 2013). On the other hand, U.S has low unemployment rates because citizens are skilled and educated enabling them to secure job positions. Also, U.S economy is rapidly growing leading to the high demand of employees. Argentina has an average unemployment rate while that of U.S is better because it’s below the perceived rate in the country.

Currency rate

Argentina local currency is Argentine peso (ARS) with an exchange rate of 0.0057 to the dollar. The country has a floating exchange rate which fluctuates according to the exchange rates in foreign markets (Gomez 2015).

Trading partners

Brazil is the leading trading partner with Argentina as Argentina exports $9B to Brazil and imports $13.4B from the same county. Argentina engages in foreign direct investment as the country is endowed with natural resources but does not give importance to investment as there is a restriction on FDI (Bas 2012). The nation has trade surplus due to the limitation on agricultural exports. Exports represent 12.71% of Argentina’s GDP.

 

Assessment

Argentina is facing an economic crisis due to the high inflation rates which are at 40% and unemployment rates at 8.7%. Investors fear to invest in Argentina due to high taxes and political risks through strict policies that do not offer a conducive environment for business operations. Also, capitalism is absent in the country thus limiting economic freedom. The poverty levels in the country have increased contributing to low consumption levels.

 

References

Ball, L., De Roux, N., & Hofstetter, M. (2013). Unemployment in Latin America and the Caribbean. Open Economies Review, 24(3), 397-424.

Bas, M. (2012). Input-trade liberalization and firm export decisions: Evidence from Argentina. Journal of Development Economics, 97(2), 481-493.

Gómez, G. M. (2015). Argentina’s parallel currency: The economy of the poor. Routledge.

 

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