Argentina’s main goal for trade was to rebuild their tattered economy. Just as in the 1940s, 50s, and 60s, the 1990s and the early 2000s were defined by a rapid decline in the nation’s economy. Inflation and debt ran rampant until the peso was devalued in late 2001. Argentina faced deep budget cuts in light of its second bout with hyperinflation, and the easiest way to regain profits was to increase foreign trade, especially exports. Argentina is abundant with natural resources. It not only, as the eight largest country in the world, has vast oil fields and metal mines, but also contains grasslands perfect for agriculture.
Argentina quickly put its resources to work, selling petroleum, soybeans, wheat, corn, automobiles, and meat to countries both near and far. Trade with its largest partners, Brazil, the United States, Chile,
China, and the Netherlands helped Argentina to regain much of the money it had lost. The export boom was sped along by the inflation of the Argentine currency (the Austral used from 1985-1991 or the Peso Convertible used from 1992 to the present day). The low exchange rate between Argentina and its business partners made Argentine products extremely cheap which increased the foreign demand. Even though Argentina imports large amounts of industrial supplies, consumer goods, and machinery, it is rare for it to spend more than it earns from its competitively priced exports. In this way, Argentina was able to repay many of its debts and slowly rebuild the value of its national currency.
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