Argentina and Canada

In: Miscellaneous

Submitted By michaeljhkim
Words 521
Pages 3
1. A summary of the agricultural industry in Argentina, Canada and their differences
With a solid base of natural resources, the agricultural sector is one of the cornerstones of economic activity in Argentina, as one of the main countries possessing the highest quantity of farmable land. In 2004, agriculture accounted for 11% of the nation’s GDP and 57% of total merchandise exports. Argentine producers have applied global technological advances to their agricultural operations to optimize output. With use of farming technology, Argentina is one of the main exporters of soy, wheat, corn, and fruits. Main trading partners are the European Union, such as Spain, the Netherlands, Italy, Germany and France, as well as Asian countries such as China.
The country has a fairly educated labor force, and a large market size but the country’s competitiveness is eroded with poor institutional environments and lack of government efficiency and transparency that leads to investor distrust. The expansionary fiscal and monetary policies have caused overheating of the economy recently, surfacing the nation’s historic problem of high inflation rates. Along with high debt levels, these factors contribute a lot to low investor confidence, creating capital outflows. The markets are also rather inefficient, with goods, labor, and financial markets ranking among the 120th place in the most recent Global Competitiveness Report (Appendix A). There is also no protection from the government, where like North America or Europe have import barriers or subsidies or price supports. Rather, the Argentine government applied export taxes on grains, and saw it as a mere source of tax revenue.
The agricultural sector Canada faces similar healing and in-progress stages of political support for the industry as well. Canada’s biggest grain crops are wheat (historically the sixth largest wheat producer…...

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