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to protect peso’s value against such pressure there were surplus money US$ 1 billion and US$ 6 billion in 2000 as well as 2001 respectively. On 23 December 2001 Argentina government declared a default on US$93 billion of its bonds, the largest sovereign debt default in history.

CRISIS AND RECOVERY

Argentine economy collapse at the end of 2001 and the devaluation of the peso in 2002. As recovery ensued and the exchange rate stabilized around 3 pesos/dollar, exports grew steadily. Imports began recovering sharply in 2003; from 2003 to 2011 the nation's merchandise trade balance recorded a cumulative US$115 billion in surpluses. The nation's perennial trade deficit in manufactures widened during this expansion, however, and exceeded US$30 billion in 2011. Accordingly, the system of non-automatic import licensing was extended in 2011, and regulations were enacted for the auto sector establishing a model by which a company's future imports would be determined by their exports. Import dominated by information technology, major appliances, footwear, and farm machinery.

OVERVIEW OF ARGENTINA MARKET

Argentina is the third largest market in Latin America with a GDP of 386 billion dollars, after Brazil and Mexico. Argentina is one of the richest countries in the world. Argentina is an agricultural power. It produces 100 million tons of food products and exports more than 50 million tons. It is a large exporter of wheat, soya and meat. It is the world’s largest exporter of soy oil and sunflower oil, the second largest exporter of corn, third largest producer of beef , soybeans and biodiesel and fourth largest of wheat. Argentina is using at present only 34 million hectares for agriculture. Argentina has a large area -almost equal to that of India- with a variety of fertile soils and climates.

The vast fertile plains, is one of the most productive regions in the world. They are supported by an excellent network of research and development laboratories. Argentina has developed an efficient infrastructure, logistics and network for transportation and shipping. The food processing industries of Argentina are one of the most advanced in the world and globally competitive. Argentina is self-sufficient in energy and a net exporter of oil and gas. It produces 850,000 barrels per day of crude oil of which 300,000 are exported. The Argentine manufacturing industry is relatively large and diversified. It is strong in food processing, automobiles, autoparts, engineering, metallurgy, pharmaceuticals and biotechnology.

Argentina has a population of 40 million. It had the earliest railroads, metro and industrial development. Buenos Aires city was built like the Paris of Latin America with elegant parks, public buildings, apartment blocks, theatres, cafes, restaurants and bars. Argentina celebrated its 25th anniversary of the restoration of democracy in 2008.

In the last nine years (after the 2002 crisis), the macroeconomic fundamentals of the economy have become strong and stable. This has been recognized and commended by external observers, including IMF and World Bank. The Argentines from all walks of life, including political leaders, businessmen, and professionals have, now a new mindset, especially after the historic 2001 crisis. Policy-makers and the people in general are now looking towards the future with confidence, hope and vi