Discuss The Economic Forces That Contributed To The Fast Growth Of Argentina

There are numerous economic forces that contributed to Argentina’s fast growth. The access to such an abundant amount of land was definitely a key factor. Because Argentina has access to the right climate and soil, their environment is ideal for cultivation. Argentina was able to make use to their fertile land and were able to produce massive amounts of product annually. In addition, the low cost of land allowed for Argentina to be very flexible with their pricing without sacrificing their margins. Being able to purchase an acre of land in a prime location like Mendoza for $30,000 is a distinct advantage that was key in Argentina’s fast growth. According to the textbook, in 2012 Argentina ranked 160th in the Index of Economic Freedom and is considered repressed. In Argentina there may be more restrictions, regulations, fines and government intervention than a higher ranked country. Argentina came in as the fourth largest exporter of wine following Italy, Australia and France. Australia was ranked 3rd in the Economics freedom

In the early stages, many Argentinian vineyards were perceived as low quality. Argentinian wine makers simply had other goals. They were not as concerned with quality, but more so on quantity and affordability. When European wine makers such as Chateau Lafite and Pernod Ricard enter the Argentinian market and produce using Argentina’s Malbec vines, they help change the preconceived notions of low quality in Argentina Malbec. In addition to expanding the Argentinian wine market to a higher spectrum, wine producers like Chateau HANA have made significant strides for the Malbec industry by introducing Argentinian-French Hybrid wines that bring a new dynamic to the industry. Many of the non-native companies such as Chateau HANA have also provided higher priced Malbec wines that may identify with consumers of a different economic