Argentina Country Study
The focus of this study is to compare the economic, financial, and political traits of the United States and Argentina. Beginning with the key indicators (see above) taken from the Global Competitiveness Report published through the World Economic Forum, one can begin to see differences in the makeup of these countries. The Global Competitiveness Report is used to show economic competitiveness and to highlight top performing countries across the globe. Using this upper-level view, it can be seen that the United States is approximately 3.5 times larger than Argentina in land mass, and has almost 8 times as many citizens. GDP for the United ...view middle of the document...
95%. The United States is trailing at 143 with 0.77% estimated population growth for 2014. While life expectancy continues to improve, especially for the young and the poor in Argentina, the age charts above show stark differences between the two countries. The population for Argentines seems to decline steadily as age increases, while for Americans, the number stays relatively stable until age 60 where the population begins to decrease ©The World Factbook 2014
Argentina has many rich, fertile plains that are excellent for producing crops and other natural resources, but are also prone to major flooding. Some areas of the country are subject to earthquakes and violent windstorms. These seem mild in comparison to the natural hazards faced in the United States. The States are subject to tsunamis, volcanic activity, and earthquakes near the Pacific basin; hurricanes along the East Coast, and tornadoes in between. The western states are prone to mudslides and forest fires. (World Factbook)
Due to Argentina’s industrialization, many environmental issues have become prominent including: deforestation, soil degradation, air pollution, water pollution, and desertification. Argentina combats this by taking a leading role in setting voluntary targets for greenhouse gas exposure. The United States is a leader in fossil fuel consumption, resulting in large carbon dioxide emissions and acid rain. This is compounded with water pollution from fertilizers and pesticides. (World Factbook)
Argentina and the United States are now similarly structured politically. Argentina has been a democratic entity since 1982. The previous decades had been dominated by military regimes and instability. The country experienced rapid growth in the 1990s under the administration of Carlos Menem. From 2005-2011, the country’s GDP grew at an average of 7.6% per year. (Argentina Fact Sheet) This rapid growth resulted in high inflation rates and deflated the current account surplus.
Both countries have obstacles to overcome in relation to corruption and risk; however, the United States has maintained a better risk rating. Overall risk can be compared quickly by reviewing the Country Risk Tier assigned to each country. A. M. Best Rating Services rates Argentina CRT-5, the grade noting the highest level of risk, and the United States as CRT-1, reflecting little risk and a stable environment.
The United States currently holds the highest credit rating, CRT-1, with Economic Risk, political Risk, and Financial System Risk all noted as being "very low." (AMB) The U.S. economy is the most advanced in the world. As consumer confidence continues to improve, the economy is expected to continue to grow. The U.S. sovereign credit rating was downgraded due to rising federal debt, but this had little effect on investors’ confidence in U.S. bonds. Political risk is low due to a stable...