Foreign trade of Argentina

We know the foreign trade to the exchange of goods, products and services between two or more countries or economic regions, for their transformation, sale or use. It is a transaction that involves the exchange of a thing for something else, usually money.

The international economic environment is becoming more dynamic and global; globalization is reflected both in the enormous growth of world trade and in the rise of foreign direct investment at unforeseen rates. Having a vision of the future and having a predisposition to learning are two characteristics of the companies that have succeeded, and to achieve this we must have a strategic analysis and a strategic business plan.

Importation: it is the legitimate transport of national goods and services exported by a country, intended for the use of domestic consumption of another country. Imports can be any product or service received within the border of a state

Export: is it shipped of products, merchandise or services outside the countrys border to the outside. These shipments are regulated by a series of legal provisions and device controls that act as a contextual framework of trade relations between countries.

Reasons to import or export

There are several factors for an SME to decide to go out and confront the global market, that is, to assume the challenges of being global. Why should it be complicated, in the case of being one of the survivors, if you are comfortable in the domestic market?

The answer to this could be found in that in recent years the economic opening of the 90s and the prolonged recession since 1998 has wreaked havoc among the small and medium-sized companies in our country.

On the other hand, in the first instance, the Argentine domestic market, by itself, is not attractive to a company that wants to grow, because of its size, the low purchasing power of its economically active population, the poor distribution of income that only about 20% of its population has high capacity of consumption), in the current circumstances, in a market like this, it is very difficult to grow.

Companies that have survived this context can only hope to stay afloat if they do not develop another vision. For some entrepreneurs, this may be the only thing that interests them, but they will be exposed to the one, before the least contingency, they are outside the business. This is why the only way to grow is to export, which means as a strategy:

-Find a more attractive market, with more consumers, acquiring another scale of operations.

-diversify the quality and quantity of customers, better distributing their risks (atomization)

– take advantage of the exchange rate, in order to earn more income.

– look for good advice and step on insurance, to minimize the risks inherent in a new way of acting.

Competitive advantages

Efficiency:

Comparative advantages
The economy of scale
The own systems

Flexibility:

Diversifying; reduces risks
Defending better from the competition

Learning: new ideas, product innovation, services, distribution, etc.

Prestige: the clientele values ??the presence in the foreign market

Company to clients: for example, audits, consultancies, banks.

Market study

This depends on:

-Identify external demand.

-To know the economic-importing power of the outside world.

-To know the possibilities of access, penetration and conquest of external markets and their norms, requirements and modalities.

-To know the comparative and tariff advantages granted by multilateral agreement systems.

– Have an export policy designed.

Indicators that are important to know

Rent per capita:

is an indicator of purchasing power and population.

Rate of economic growth:

the interest of a market is very different when its economy is in an expansion phase than when it is in recession.

Image of our country in the country of destination:

if our country enjoys a good image this can facilitate export activity.

Possible export subsidies:

governments often grant preferential financing lines to developing countries

Individually address the export project.

It should also be noted that another fundamental reason is that work

Shared makes the use of resources more efficient.

Foreign trade participants

Customs brokers

It is the auxiliary of commerce and the customs service. Visible person who performs on behalf of others before the customs service procedures and procedures related to import, export and other customs operations.

Customs brokers are NOT conducting traders because the acts they perform such as dispatch, export, transhipment, re-shipment, etc. They are all activities linked to the public administration, not acts to be carried out by a merchant.

They collaborate, assist and assist in merchant activities to the merchant, making it work with good gear, systematizing the trade and fulfilling the role of the merchant.

Customs broker or attaché

It may be an a person or a company that represents the carriers that are in charge of the procedures related to the presentation of the transport medium and its cargo before the general direction of customs.

These transport agents, in addition to trade auxiliaries, are auxiliaries of the customs service. It must be registered in the customs transport register, and for this, it must prove, among other requirements, the necessary solvency and grant in favor of The DGA a guarantee in security of the faithful fulfillment of its obligations.

Proxy

Art 75. Customs brokers and customs agents may be represented before the customs service by the number of general attorneys-in-fact determined by the regulations. Only persons of visible existence can be designated as proxy.

Such proxy holders may represent more than one customs broker or, where applicable, more than one customs broker.

Those who do not comply with the requirements detailed in the customs code may not perform as such.