For entrepreneurs in #Argentina, the devaluation didn’t just increase the cost of business, it also complicated international expansion strategies, as the buying power of their peso savings evaporated.
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Also for exporters it helped their cost structure. The devaluation reduced the cost of real wages. Flip side of more expensive imports is more competitive exports. Argentina needs this to integrate into the global economy. Sacrifice in the short run, gain in the long run.
For sure, provided those exporters don’t rely upon imported intermediate goods that are now far more expensive, no?
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But if for re export, the dollar cost of those components are the same. What got cheaper we’re the local costs. Therefore total cost exporting from Argie went down. The cost to import the intermediate goods in dollars for re export stays the same.
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But they have other barriers to export and export growth will therefore lag the real deval
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