tal / Social Problem #2Another problem that Argentina is facing is that changing the culture and social fabric of Argentina from an agricultural, farming country to one that is more balanced in manufacturing and hi-tech in order to grow. Argentina is good when food demand is high in the area and the world. When it is not, Argentina has trouble keeping the economy good. When food production is down the country cannot meet its economic obligations to its own people and the rest of the world. The government is trying to bring manufacturing and hi-tech industry to Argentina. Success is dependant on many things like the education of the Argentina workforce, natural resources, and the general health of the economy in South America as a whole (i.e. Brazil, etc.).A key development in helping Argentina meet its external payments is the dramatic growth in Argentina's foreign trade since 1990. Foreign trade plays an increasingly important role in Argentina's economic development. Exports currently represent less than 10% of Argentina's GDP. This percentage should rise as Argentine export competitiveness improves--a result of increased productivity generated by new investments, diversification of export products and markets, and very low domestic inflation. Grain output reached a record of over 60 million tons in 1998 as adoption of new technology and management practices significantly increased productivity. Fresh Argentine beef was exported to the U.S. market in August 1997 for the first time in over 50 years, and other export prospects improved tremendously. However, export growth slowed sharply in 1998 due to lower world prices for petroleum and agricultural commodities. Slower growth in Brazil also adversely affected Argentine exports, especially in the automotive sector. Meanwhile, lower GDP growth contributed to a reduction in the rate of import growth. Capital goods continued to account for over 40% of total imports. MERCOSUR, a region...
