Argentina faces mass exit of companies: global crisis or mismanagement?

International News
| 12 Aug 2022

When a company decides to close its operations in a certain city, state, or country, it does not only take with it the product sold or service provided, but also the employment of thousands of people, in addition to directly impacting the economy at different levels and sectors. The exit of a single company already causes overwhelming impacts, when it happens in mass and simultaneously in a certain place it is a strong indication that some crisis is behind.

The BBC Brazil commented in the new “Ford: why Argentina retained the automaker, but faces the exit of foreign companies like Brazil” that this is the case in Argentina, which saw multinationals such as the Chilean retail group Falabella, the supermarket chain Walmart, airline companies like Latam, Qatar, Emirates, Norwegian Airline, and Basf, among other multinationals – as well as many small companies – closing their activities in the country in recent years.

Corona Virus Pandemic, quarantine, high dollar, and some government measures were some of the many factors that contributed to this scenario and to the worsening of the crisis that the country had already been facing since 2017. With that, many entrepreneurs did not see another solution if not the withdrawal and closing of the activities of their companies in the country.

Now, more than ever, the Argentine government needs to find solutions to stabilize its currency and promote initiatives to recover the economy and make the country attractive again for private investment.

All countries faced the pandemic, but on the one hand, we have Argentina with 51% inflation in 2021, while inflation in Bolivia did not reach 5% in the same period, according to the BBC Brazil report, showing the same situation, but different degrees of impact in different countries.

It is true that no one could predict the COVID-19 pandemic, but after facing it until today, it became evident the need to rethink the way we manage businesses, especially the way we face and manage crises both in the private sector and in public bodies and institutions. After all, good management can minimize problems and find better solutions.