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Case Study - Banking on Argentina

Read the case study and respond to the following questions:

1. Discuss how the fall in the value of the peso affected business opportunities for companies doing business in Argentina and in exporting and importing? Should the government allow the peso to fall even farther to stimulate exports? Why, or why not?

2. Do you think HSBC should remain in Argentina? Provide rationale for your opinion.

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1. Discuss how the fall in the value of the peso affected business opportunities for companies doing business in Argentina and in exporting and importing? Should the government allow the peso to fall even farther to stimulate exports? Why, or why not?

Fall in the value of the peso affected business opportunities for both exporters and importers. For importers based in Argentina, imports became costlier due to the devaluation of their domestic currency against dollar as they had to shell out more pesos for each unit of dollar for imports.

If the domestic currency depreciates, ...

Solution Summary

Answers questions of the case study such as how the fall in the value of the peso affected business opportunities for companies doing business in Argentina.

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