Following last week’s looting of supermarkets, and facing currency exchange restrictions and 20% annual inflation, Argentine Firms Get Creative
Many of Argentina’s businesses say the country’s increasingly unorthodox macroeconomic policies are becoming a headache.
So we now have Newsan SA (which makes Sanyo plasma-television screens and JVC video cameras) fishing shrimp and hake, tire maker Pirelli exporting honey, and BMW exporting leather, grape juice, and rice. Why?
Last year, President Cristina Kirchner’s government sought to stem an outflow of dollars, help companies and protect local industry by creating a new trade policy that allows imports of foreign goods only if they are equally matched by exports.
This is vastly inefficient, and increases the cost of doing business in the country. Read the article for details.
Not a way to run an economy, but a way to ruin it.
Cross-posted at Fausta’s blog.