I need help with a Business writing assignment; i need someone to update the document based upon the comments provided

Country Background:

Argentina is located in the southern part of South America. It occupies an area of 2,780,400km, making it the eight largest countries in the world. Argentina is bordered by Chile to the west, Bolivia and Paraguay to its north, with Brazil and Uruguay in the northeast (James, 2015). It has a population of 43 million people. Its capital city is Buenos Aires. The most spoken language is Spanish (James, 2015). The country has several climatic zones. They include tropical and subtropical zones along its Brazilian border and temperate regions in its sub-polar area in the south.

The political system of Argentina is presidential. Its current president is Mauricio Macri, elected on a Republican Proposal party. Its governing system is based on a representative system that is dominated by a federal system. The country is governed by a civil law legal system. The dominant political parties are the Justicialist Party and the Radical Civic Union.

The country uses Argentine peso as its currency and is freely exchanged. Argentina’s economic system is mixed. Agriculture forms the backbone of its economy. The major natural resources include zinc, iron ore, lithium, uranium, manganese and petroleum. The economic system includes a combination of centralized economic planning and regulation by the government. According to the World Factbook, the service sector is Argentina’s major contributor to GDP. Its diverse economy thrives from real estate, financial, communication services, transportation and social services.

The banking industry is also powerful and has created a strong capital market, further contributing to the country’s economy. Brazil and China are the major trading partners of Argentina. The country, however, imports heavily from Germany, Bolivia, Japan, the United States, Italy, France, and Mexico. The country mainly imports intermediate goods making 29 percent of total imports, capital goods, motor vehicles, fuels and lubricants, and parts and accessories for capital goods (Prasad & Ghauri, 2004). The telecommunications sector is also doing well. A majority of the population can now access mobile telephony, mobile and broadband services. Argentina recorded GNI per capita of 13,640 in 2015 (James, 2015).

Business Proposition:

Argentina offers attractive business profitability in a wide range of sectors. Foreign Direct Investment stock has recorded the highest earnings. Foreign companies are making it big in the country. The legal framework is also friendly in that it subjects FDI and domestic investment to the same treatment. A foreign company can freely remit profits and capital. Besides, the country boasts of 19 bilateral treaties for the avoidance of double taxation. It also holds 55 bilateral investment treaties aimed at protecting and promoting foreign investments (U.S Department of State, 2015). Comment by Mikki: Only the first letter needs to be capitalized because it begins the sentence. Otherwise, the term is small case. Comment by Mikki: Revise this; it is too informal.

It is profitable for the D'Cameron Engineering Corp to make a foreign direct investment in Argentina. This is because Argentina's economy is globally and regionally integrated. Argentina is also rich in skilled and talented human resources that are essential for not only D' Cameron Engineering Corp but any company interested in investing in the country. Lastly, its government supports investment. This can be seen through the creation of ProsperAr and the provision of investment incentives (Global Alliance of SMEs, 2016).

Evidence 1: Comment by Mikki: With each evidence subsection, restate your business reason (in italics) before the first paragraph.

Argentina's trade, financial and investment flows connect the country to the world and regional economy. Argentina is among the founding members of WTO and over the years has participated in the multilateral trading system. Nearly 50% of Argentina's GDP is contributed by its exports and imports of goods and services. Currently, 9.9 percent and 10.5 percent are the import tariffs for agricultural and non-agricultural products respectively. To plus on that, the country is a member of Mercosur. Other members of Mercosur are Brazil, Paraguay, and Uruguay. Talks about Venezuela's becoming a full member of Mercosur are still underway. Countries under Mercosur export and import goods and services among themselves at a tariff rate of 0%. This means that if the D'Cameron Engineering Corp invests in Argentina, it will get the benefits associated with importing and exporting goods from Mercosur member states (International, B. P 2008).

D'Cameron Engineering Corp is a foreign company investing in Argentina; the company will reap benefits provided by Mercosur. For foreign companies investing in Argentina, Mercosur gives them a large and attractive regional market. These companies also benefit from trade negotiations with Latin America and third nations. In Mercosur, Argentina exports its products to a regional market free of charge (0% tariff). The regional market is large with 237,000,000 inhabitants, with a combined GDP of US$ 1,708 billion. Since 1998, Argentina has had an outstanding economic performance, and this has made the state to be the central driver of Mercosur's intra-regional trade. Between 1999-2007, intra-Mercosur imports increased of which 64% of this increase was contributed by Argentina's outstanding economic performance. As a part of the Mercosur, Argentina has made FTAs (free trade agreements) with Mercosur's associate members such as Bolivia, Chile, and Colombia (Rajagopal, 2007). Comment by Mikki: Throughout your paper, keep your fonts consistent Also, you have a lot of promising research to work with. Expand on your critical arguments a bit more to show the benefits of doing a FDI to D'Cameron Engineering Corp (based on the researched evidence you provided to support each business reason).

D'Cameron Engineering Corp could not be the first company to operate in Argentina, as there are over 1,000 foreign companies in the country. For instance, half of Fortune 100 companies and many others operate in Argentina. Companies from different industries such as automotive, IT, telecommunications and finance industries operate in the country. Of the country's 500 largest non-financial firms, 66% of these firms are foreign firms, and they contribute over 80% of Argentina's sales. Since 2004, the performance of FDI in Argentina has significantly increased. In 2015, it was US$ 5,600,000,000, and this was 14% higher than the value recorded in 2014. The US$ 5,600,000,000 posted in 2015 was also more than last decade's average annual net of privatizations (US$5, 300,000,000) (U.S Department of State, 2015). Comment by Mikki: How does the information you provided benefit D'Cameron Engineering Corp. and influence them to do a FDI in Argentina? Apply this feedback throughout your entire paper.

In the past two years, there has been a massive entry of new transnational companies into Argentina's domestic market. The production capacity of transnational companies has increased, thereby improving Argentina's economy. Previously, mergers and acquisitions contributed a large part of Argentina's FDI although this has changed over the years. For instance, in 2015, mergers and acquisitions only contributed less than 5% of Argentina's FDI while reinvestment of earnings was at high levels the country has never reached before (over 25%) (Global Alliance of SMEs, 2016).

Evidence 2:

Argentina’s human resources receive good training and are highly educated. In terms of educational attainment and adult literacy, Argentina is acknowledged on a global map. Its educational attainment and adult literacy are said to similar to those of Italy and Israel, which are excellent (Global Alliance of SMEs, 2016). Comment by Mikki: This first paragraph is too short

Argentina is rich of motivated and talented entrepreneurs. In GEM (Global Entrepreneurship Monitor), Argentina is placed number ten, and its business schools are world-class. Every year, over 60,000 and 4,500 undergraduate and postgraduate students respectively from 101universities in Argentina are absorbed into the labor market. In terms of English penetration, Argentina is placed above Brazil, Chile, France, and Italy (Global Alliance of SMEs, 2016).

Argentina's professionals are characterized by superb abilities to innovate technologically. D’Cameron Engineering Corp is an engineering company and therefore could make use of Argentina’s engineers who are devoted to research and development. Per 1,000,000 inhabitants, the number of Argentina’s engineers devoted to research and development practices is above that of countries such as Brazil, Chile, and Uruguay (James, 2015).

Evidence 3:

Recently, the government of Argentina created ProsperAr, a national investment development agency. The agency is committed to expanding investment and attract FDI. The ProsperAr has several main objectives in supporting potential investments in Argentina. The ProsperAr is a centralized place for investors seeking to invest in Argentina. They seek foreign investment opportunities for Argentina and help companies to expand and development their businesses. In addition to the agency, the government also attracts investors through other incentives in fiscal, training and innovation. National, regional, and municipal levels all offer incentives to promote investment and also improve profitability (IBP, 2016).

Argentina has several strategies aimed at attracting FDI. Some of the strategies are export-related, training and innovation. The country gives incentives aimed at promoting investment and improving profitability at its national, regional and municipal levels. In particular, it gives foreign firms fiscal and tax benefits to minimize the load of the investment phase (imports of capital goods are tax-free, and there is the early recovery of Value Added Tax). Some of the incentives for export promotion provided by Argentina are reimbursement of VAT and temporary admission regime. It also gives fiscal credit for some training programs. To carry out practices such as innovation, scientific and technological research, these practices are funded by Argentina's government (Global Alliance of SMEs, 2016).

Conclusion:

Making a decision on the most suitable country to invest in requires time to evaluate several factors that are involved in a business. The major factor is the government of the country. A company should thoroughly study the prevailing government policies to learn whether the environment will be conducive for the business operations. As seen in the discussion, a country such as Argentina offers a good platform for investment as its economy is globally and regionally integrated. Argentina also has skilled and talented human resources that firms can utilize to boost production. Lastly, Argentina's government supports investment. For instance, recently, this government created ProsperAr, a national investment development agency which is committed to expanding investment and attract FDI. Going by these factors. Therefore, it would be prudent enough for a foreign company to establish itself in Argentina.

Works Cited