International Business Law
Final Project
Genco Argentina
November 2007
Eurodollars is an Investment banking firm specializing in researching and structuring foreign investments on behalf of large companies. Genco is a multinational corporation based in the USA, licensed as a publicly traded company. The primary business purpose of Genco is to develop, manufacture and distribute pharmaceutical products in a rapidly growing global marketplace. Genco is interested in penetrating the South American market with their new generic drug for the treatment of AIDS. As such, Genco would like establish itself in Argentina where they will conduct market research and analysis, build manufacturing facilities and ship their finished products outside the country to international markets. Genco would like to know and understand the business climate in Argentina including and the risks, rewards, policies and procedures in place.
Argentina business climate
Argentina has made considerable strides in the last six years to establish itself as a player in the global market place. The government has taken steps to show a strong interest in attracting Foreign Direct Investment and grow both as an economy and as a nation. If there are some concerns among international investors it is a volatile regulatory climate (US Dept of State, 2007). However this concern seems to be outweighed by a climate fueled for growth.
Argentina's economy was off to a favorable start at the beginning of the 1990's when it converted it's paso to match the dollar. Doing so led to an initial fire of economic development but the flame was soon extinguished when poor accounting disciplines and clear lack of regulatory standards led to a rush of indiscretionary borro ...