Compare and Contrast Essay on Argentina and Australia

Introduction

Argentina and Australia have a unique historical background upon which the foundation of their development has been based. Both countries trace a majority of their systems to European colonization though these systems have received a significant influence by indigenous people. However, Argentina and Australia are modern countries that have developed their political, cultural, and economic structures over the years. Therefore, a comparison of the two countries will provide a clear understanding of socioeconomic structures that have enabled Argentina and Australia to be counted as some of the most developed societies of the modern times.

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Argentina and Australia are both democratic countries. In the last decade, they have experienced few instances of instability. In Argentina, after the 2015 presidential elections, the political environment experienced instability following the politically difficult reforms that President Mauricio Macri implemented this did not affect much of the stability of the country. Indeed, the country has been considered in recent times to be even more stable than Brazil (Rapoza, 2016). However, this instability is not widespread but represents usual political happenings in any country. By 2017, the country was in a strong political position again (Taylor, 2018).This has not only created political stability in the country but also influenced positively other sectors of the Argentine society, including education.

On the other hand, Australia has over decades experienced a stable political environment due to its transparent regulatory system and the sound governance framework (Bahmani-Oskooee& Maki, 2017). Although most countries currently enjoy stable political environments, Australia has stronger political institutions. Political stability in both Argentina and Australia has provided multinationals with a secure business environment which has been instrumental in the countries' socioeconomic progress (Bahmani-Oskooee& Maki, 2017). When a country is safe and stable, an enabling environment is created for business to thrive. This has steadily happened in both countries.

The cultural environment of the countries is distinct in many ways. In Australia, English is the official language. It is used extensively in the country and has an international presence. In the education systems, English is widely used. However, in Australia, Chinese, Italian, Arabic are also spoken. There are further over 50 indigenous languages spoken in the country, and a majority of the citizens profess the Christian faith (Clancy, 2004). Although Spanish is the official language in Argentina, several other indigenous languages are spoken. The cultural practices such as music, dance and song were dominantly influenced European migration (Nickles, 2001). Both countries have a highly literate population, and people live in big cities. Both countries also have specific business etiquettes, which individuals should consider when conducting business in respective nations (O'brien & Williams, 2016). However, some cultural practices vary, especially due to the presence of many indigenous communities.

While in Argentina Spanish is the commonly used language in formal and informal setting, one may find someone speaking English, German or indigenous languages. The current cultural environment in Argentina requires one to build business relationships because Argentines are family-oriented people and they value close, personal relationship (Taylor, 2018; Delrio et al., 2010). As such, one should nurture these relationships to avoid difficulties in negotiations. On the other hand, in Australia, building relations for long is not a necessity for doing business because Australians are straightforward and receptive to new ideas. Therefore, considering the current cultural environment of the two countries, it will be more comfortable setting up a business in Australia compared to Argentina.

The economy of Argentina has experienced growth following a 2.2 percent decline in 2016. However, as an emerging economy, the country is facing high levels of unemployment and poverty, and the government continues to face the challenge of strengthening the job market. The industrial sector is the primary economic sector in the country representing approximately 27 percent of the country's GDP (Taylor, 2018). On the other hand, Australia has experienced a stable economic environment following twenty-six years on uninterrupted economic growth. It has one of the highest growth rates among countries of the OECD, and the rate of unemployment is less than 5 percent. The services industry is the primary economic sector contributing more than 70 percent of the country's GDP (Bahmani-Oskooee& Maki, 2017). Although the two countries have different economic environments, they both support domestic and foreign businesses as well as put a significant investment in their education system which has played a vital role in economic growth and development in both nations.

Conclusion

Argentina and Australia are leading economic fronts in their respective regions and setting up a business in either country require one to understand their current political, cultural, and economic environment. Both the two countries have had a period of political stability in recent decades. Their cultural context makes it possible for one to start and develop businesses in their domestic markets. Moreover, they have both experienced economic growth due to the creation of policies and the introduction of reforms meant to ensure a stable economic environment to facilitate the development of the business.

References

Bahmani-Oskooee, M., & Maki Nayeri, M. (2017). Policy uncertainty and the demand for money in Australia: An asymmetry analysis.

Clancy, L. (2004). Culture and customs of Australia. Santa Barbara, CA: Greenwood Publishing Group.

Delrio, W., Lenton, D., Musante, M., Nagy, M., Papazian, A., & Perez, P. (2010). Discussing indigenous genocide in Argentina: Past, present, and consequences of Argentinean state policies toward native peoples. Genocide Studies and Prevention, 5(2), 138-159. doi:10.3138/gsp.5.2.138

Nickles, G. (2001). Argentina: The culture. New York, NY: Crabtree Publishing Company.

O'brien, R., & Williams, M. (2016). Global political economy: Evolution and dynamics. Macmillan International Higher Education.

Rapoza, K. (2016). Argentina is now more politically stable than Brazil. Forbes.

Taylor, A. M. (2018). The Argentina paradox: microexplanations and macropuzzles. Latin American Economic Review, 27(1), 3.