Default of Argentina: The Role of Politics and Globalization

Fears of Argentina Default Article Reflection
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Fears of Argentina Default Article Reflection
Answer 1
Politics play significant roles in the economic status of a country. For example, the financial crisis facing Argentina has been attributed to political instability and poor economic decisions. President Mauricio Macri’s term in office enabled Argentina to regain the trust in the global market. In particular, Argentina’s previous administrations have made decisions that contributed to the country sinking into over $15.6 billion debt in 2019 (Maki & Oyamada, 2019). Markets are volatile based on an election since different presidents implement policies that might either favor or discourage investments and economic growth.
Answer 2
Globalization has made the entire world to be a village where something happening in one country affects others. The potential economic default in Argentina has impacts on the rest of the world. For instance, foreign investors are likely not to enter the country due to political instability. Additionally, organizations such as the International Monetary Fund (IMF) are likely to deny third-world countries loans due to their inability to pay.
Answer 3
Argentina is ...