Foreign direct investment – A. Robinson & Sons

Posted on April 17, 2023 by Cheapest Assignment

Order Now
Contemporary Issues in Project Management


Foreign direct investment (FDI) is a form of investment that involves a foreign company investing in a domestic company. The investment is usually in shares, assets, or a loan (Hrechyshkina & Samakhavets, 2018). The foreign company can be a subsidiary of the parent company, or it can be an affiliate. There are several advantages to FDI. First, it can help a company expand its operations into new markets (Tien & Ngoc, 2019). This can help to increase sales and profits. FDI can also help to develop new products or services. FDI can also be a source of financing for a company. This is especially helpful if the company needs money to invest in new equipment or expand its operations. FDI can also help reduce the risk associated with investments by providing security and stability (Zhao et al., 2020). Therefore, FDI is an important form of investment because it can help companies grow and expand their operations. It can also provide financial support when needed, making investments more affordable.

The FDI country is Argentina. There are several reasons why Argentina would be a viable country for foreign direct investment for a company that deals with car sales (A. Robinson & Sons). Argentina has over 41 million people, and the country’s economy has been growing at an annual rate of 3.5% in recent years (Chatellier, 2021). In addition, Argentina has a young population, with over 50% of the population under the age of 30. This means a large pool of potential consumers in Argentina who need new cars.

Furthermore, Argentina has a well-developed infrastructure, including roads and highways in good condition (Bajar & Meenakshi, 2018). Finally, Argentina has a stable political environment, with the country having had relatively few political coups in recent years. These factors make Argentina an attractive destination for companies that sell cars.

MAA716 – Financial Accounting 2

Company Overview

“A. Robinson & Sons” is a family-owned and operated business founded in 1875 by Alfred Robinson. The company is now in its fourth generation of ownership and is run by the Robinson family. A. Robinson & Sons is a general contractor specializing in constructing public works projects, such as bridges, highways, and water and wastewater treatment plants. The company has more than 200 employees and a fleet of more than 20 trucks and construction equipment. Recently, the company began venturing into car sales. The company is headquartered in Stanley Common, United Kingdom.

  1. Robinson & Sons are well-positioned to continue thriving in the 21st century. The company has a strong reputation for providing quality services at a fair price and a strong customer base willing to use its services again and again. A. Robinson & Sons should be able to maintain its competitive edge by focusing on providing quality services and ensuring that its projects are completed on time and under budget.

Pestle Analysis


Argentina is a presidential republic with a strong executive branch. The president is elected for a term of four years and is considered the head of the state as well as the government. The president is the head of state and government and is elected for a four-year term. The country has a bicameral legislature of the Senate and the Chamber of Deputies (Hernández & Altavilla, 2021). The judiciary is independent.

Argentina is a member of Mercosur, a South American trade bloc, and maintains a tight grip on the economy through controls over capital flows, currency rates, and prices (Bergant et al., 2020). The country has a high level of economic inequality. In 2009, the Gini coefficient was 0.549, meaning that wealth is highly concentrated in the hands of a few people.

The political landscape in Argentina is relatively stable. The country has had multiple presidents and regimes throughout its history, but the current government has been in place since 2003. The current president, Mauricio Macri, is a pro-business leader who has been working to make Argentina more attractive to foreign investors (Jones et al., 2019). Macri has changed the economy such as lifting currency controls and reducing taxes. However, there are still some concerns about corruption in the government, and there are occasional protests and strikes. The current government in Argentina is pro-business, and it aims to make the country more attractive to foreign investors.

BHO0217 Global Management in Context Coursework Sample


The economy in Argentina is growing slowly but steadily. In 2017, the country’s GDP was estimated to be around $643 billion (Coady et al., 2019). The country’s main economic sectors are agriculture, mining, manufacturing, and services. The economy is highly dependent on exports and imports. The government has implemented several austerity measures to improve the country’s fiscal situation and reduce its debt burden. These measures include cuts to public spending, reduced pensions, and increased taxes. In 2013, Argentina’s unemployment rate was 17.6%. Poverty rates are high in Argentina, with over 40% of the population living in poverty (Ivaldi et al., 2020). The country is facing several economic challenges, including high inflation levels and deficits in its budget sector. These issues have led to mounting debt levels and concerns about the country’s ability to repay its loans. One of the main reasons for this slow economic growth is inflation, increasing over the past few years. This is due to several factors, including the high level of government spending and the depreciation of the Argentine peso. Argentina has been trying to reduce its debt levels, but this has been difficult because of its weak economy. In 2017, Argentina’s public debt was estimated to be around $324,373 million (Dullien et al., 2019). Foreign direct investment (FDI) is an important part of the Argentinian economy, and companies have made several recent deals worldwide.


Argentines are known for their passion for soccer, which is considered one of the country’s main exports. The national team has played in several World Cup tournaments and reached the final in 1990. Argentine culture is often associated with its wine industry. The country is one of the world’s leading producers of wine and has several renowned wineries (Rodrigues et al., 2020). Argentines are also well-known for their cuisine, characterized by their use of fresh ingredients and spices. Some popular dishes include empanadas and milanesas. Argentine culture is generally relaxed and relaxed, with a strong sense of tradition. This has led to the country being known as “the land of the eternal summer.” Argentines are also known for their sense of humor, often displayed in popular TV shows and movies. In general, Argentines are considered to be friendly and hospitable people. They are often fond of socializing and spending time with family and friends.

(MGBG13) Principles of Project Management


Argentina has a rich cultural heritage and is home to some of the world’s most renowned universities. The country has many natural resources, including oil, gas, coal, copper, gold, and silver. Argentina also has a strong agricultural sector and is one of the world’s top ten wool producers. Argentina was in the middle of an economic recession in 2001 (Muller et al., 2018). The government has taken several measures to revive the economy, including public-sector layoffs, cuts in government spending, and increased private-sector regulation.


Several laws and regulations must be followed when doing business in Argentina, but the overall environment is conducive to investment (Sili & Dürr, 2022). A. Robinson & Sons should be aware of the following legal considerations:

Contracts: All contracts must be in writing and signed by both parties. Any defect or irregularity may not impair the validity of a contract in its formation, execution, or performance. Parties may not alter any term of a contract without the written agreement of the other party.

Property: Ownership and title to property cannot be disputed in court. Foreigners must comply with local laws and customs concerning the acquisition, use, transfer, disposition, and inheritance of property.

Private international law: Argentine law is based on the Napoleonic Code, a mixture of French and Spanish legal doctrines (Masferrer, 2018). This can lead to some inconsistencies in applying private international law between Argentina and other countries. Foreign investors should consult an attorney or other specialist to ensure that their rights are protected in any dispute with local partners.

Taxes: Businesses must pay taxes on income, profits, capital gains, and gifts from nationals or foreigners. In addition, businesses must also pay taxes on property and other assets.

Employment: Argentine law provides a minimum wage, which is currently set at $848 per month. Firms must maintain records of employee wages and hours worked to comply with labor laws. Foreigners are not allowed to work in the country without a work permit.

Torture and human rights: Argentina has been designated a country of concern by the UN Commission on Human Rights due to its poor record in protecting human rights (Creamer & Simmons, 2020). Torture and other forms of abuse are still common in police custody and prisons, and there has been a rise in cases of violence against women. Foreigners should exercise caution when traveling to Argentina, as they may be targets for robbery or other crimes.

Language Media and Communication Service


Argentina has a hot, dry climate. Summers can be very hot, while winters are milder but still cold. The country experiences several different climatic conditions, with areas in the north and south experiencing very different weather conditions. The country has several important mountain ranges, resulting in dramatic changes to the climate. For example, temperatures can drop significantly in the Andes Mountains during wintertime, resulting in cold weather conditions (Conte et al., 2022). Argentina is also subject to much rainfall, leading to flooding in some areas.

Porter’s 5 Forces

a.     The threat of New Entrants

The threat of new entrants in the Argentine market is high, as the market is open to all companies, and there are few barriers to entry. The main barriers to entry are the high costs of establishing a presence in the market and the need to have a local partner. However, these barriers are not insurmountable, and new entrants could easily enter the market by partnering with a local company.

b.     Threat of Substitution

The threat of substitution is high in the Argentine market, as many established companies offer a wide range of products and services. These companies could easily replace any new company that enters the market. However, this threat is mitigated because most consumers are loyal to their existing providers and are likely to switch to a new provider only if the quality of service declines significantly.

c.     Barriers to Entry

The barriers to entry in the Argentine market are high, as there are few barriers to entry. The main barriers to entry are the high costs of establishing a presence in the market and the need to have a local partner. However, these barriers are not insurmountable, and new entrants could easily enter the market by partnering with a local company.

d.     Foreign Direct Investment

Argentina is a great place for foreign direct investment, as it has a large and growing economy that is attractive to investors. The country also has a stable government and is considered a safe investment destination. Overall, the barriers to entry in the Argentine market are low, making it an attractive market for foreign direct investment.

e.     Competition from Other Markets

The competition from other markets is high in the Argentine market, as many established providers offer a wide range of products and services. These companies could easily replace any new company that enters the market. However, the high competition from other markets can also be a positive factor, as it drives innovation and ensures that companies offer high-quality products and services.

f.      Risks Associated With Entering the Market

There are several risks associated with entering the Argentine market, including the risk of failing to compete with established providers and the risk of insufficient consumer demand for new products or services. However, these risks can be mitigated by careful planning and implementation of marketing strategies.

g.     Potential for Growth

The Argentine market is potentially lucrative for new companies, as the country has a large and growing economy that is expected to continue to grow in the future. This growth could provide many opportunities for new companies to emerge and compete in the market.

h.     Trends in the Market

Several trends currently affect the Argentine market, including increased consumer spending on luxury goods and services, increasing demand for innovative and cutting-edge products, and increasing demand for quality service providers. These trends could help drive growth in the market for years to come.

BSOM023 KPIs Assessment Sample

Mode of Entry

The Argentine market is competitive and reasonably open to new companies, making it a good choice for those looking to establish a foothold in a new market. However, care must be taken when planning and launching marketing campaigns, as there are many risks associated with entering the market. Therefore, the most profitable mode of FDI entry is a joint venture. A. Robinson & Sons should consider partnering with other native companies to ensure the success of their enterprise in Argentina. Overall, the Argentine market is expected to grow steadily, providing opportunities for companies that can capitalize on these trends.

Conclusion and Recommendations

To cap it all up, companies should carefully consider the risks and potential rewards associated with entering the Argentine market before deciding. They should also plan their marketing strategies carefully, as several factors could affect the country’s demand for their products or services. By taking these things into account, businesses can maximize their chances of success in the Argentine market.


Bajar, S., & Meenakshi, R. (2018). The impact of infrastructure provisioning on inequality. National Institute of Advanced Studies. Bangalore.

Bergant, K., Fidora, M., & Schmitz, M. (2020). International capital flows at the security level–evidence from the ECB’s asset purchase program. International Monetary Fund.

Chatellier, V. (2021). International trade in animal products and the place of the European Union: main trends over the last 20 years. Animal15, 100289.

Coady, M. D., Parry, I., Le, N. P., & Shang, B. (2019). Global fossil fuel subsidies remain large: An update based on country-level estimates. International Monetary Fund.

Conte, J. F., Chau, J. L., Liu, A., Qiao, Z., Fritts, D. C., Hormaechea, J. L., … & Milla, M. A. (2022). MLT momentum fluxes over the Andes are compared at four different latitudinal sectors using multi-static radar configurations. Journal of Geophysical Research: Atmospheres, 127(4), e2021JD035982.

Creamer, C. D., & Simmons, B. A. (2020). The proof is in the process: self-reporting under international human rights treaties. American Journal of International Law114(1), 1-50.

Dullien, S., Fritz, B., & Mühlich, L. (2019). The IMF to the rescue: Did Greece benefit from the fund’s experience dealing with highly indebted countriesJournal of Economic Policy Reform22(4), 369-383.

Hernández, A. M., & Altavilla, C. (2021). Federalism and Covid-19 in Argentina: Centralisation and hyper-presidentialism. In Comparative Federalism and Covid-19 (pp. 258-276). Routledge.

Hrechyshkina, O., & Samakhavets, M. (2018). Importance of foreign direct investment in financing for innovative development of the Republic of Belarus. Маркетинг і менеджмент інновацій, (4), 339-348.

Ivaldi, E., Parra Saiani, P., Primosich, J. J., & Bruzzi, C. (2020). Health and deprivation: A new approach applied to 32 Argentinian urban areas. Social Indicators Research, 151(1), 155-179.

Jones, M. P., Krane, J., Medlock III, K. B., & Monaldi, F. (2019). The Role of Foreign Direct Investment in Resource-Rich Regions.

Masferrer, A. (2018). Was the French Civil Code’s Model of the Spanish One? An Approach to the Uniqueness of the Spanish Civil Code. GLOSSAE: Eur. J. Legal Hist.15, 100.

Muller, F., Bermejo, F., & Hirst, W. (2018). Cultural and communicative memories: Contrasting Argentina’s 1976 coup d’état and the 2001 economic-political-social crisis. Memory26(7), 974-984.

Rodrigues, H., Rolaz, J., Franco-Luesma, E., Sáenz-Navajas, M. P., Behrens, J., Valentin, D., & Depetris-Chauvin, N. (2020). How the country-of-origin impacts wine traders’ mental representation about wines: A study in a world wine trade fair. Food Research International, 137, 109480.

Sili, M., & Dürr, J. (2022). Bioeconomic entrepreneurship and key factors of development: Lessons from Argentina. Sustainability, 14(4), 2447.

Tien, N. H., & Ngoc, N. M. (2019). Comparative Analysis of Advantages and Disadvantages of the Modes of Entry the International Market. International journal of advanced research in engineering and management5(7), 29-36.

Zhao, Y., Shi, X., & Song, F. (2020). Has Chinese outward foreign direct investment in energy enhanced China’s energy security? Energy Policy, 146, 111803.

Order Now