Thinking Globally Case Study Example | Topics and Well Written Essays - 500 words

Thinking Globally - Case Study Example Local companies tried to adapt to the problem by trying to send their money abroad to avoid inflation. However, Argentina’s central bank ordered all companies to receive clearance first before engaging in such transactions. For this reason, companies had to wait for several months before receiving authorization. In addition, the government ordered that payments be done in dollars something that also made the companies to pay extra in comparison to the value of the peso. The companies were forced to operate according to the Argentines policies despite entering the country in the 90’s with the wave of the free market. Most of the US companies that were forced to collect their revenues in peso had no otherwise but to submit to the authorities and incur extra costs that were dollar related.In case of rising inflation, the citizens are usually the worst hit. That is because inflation comes with many disadvantages such as loss of jobs. It also becomes very expensive for the c itizens to conduct their daily activities since food products and other services become expensive. Immediately after President Duhalde announced the ties between the peso and the dollar, the economy collapsed and the citizens reacted angrily by attacking politicians, banks, and culminating in protests in the streets over the high cases of inflation. For over a decade Argentina has been amassing debts that it is unable to pay to date. That means that for over a decade now Argentina’s citizens lost their spending power due to inflation.