Argentina Uncorks Malbec; World Ready for a Glasss

1. What global, as well as Argentina’s domestic, economic forces contributed to the start, and subsequent fast growth, of Argentina’s wine export?

Before 1990, Argentinean wine was produced for domestic consumption. In 1970, Argentina had an annual wine consumption rate of 92 liter per capita and very little competition. Even today, 95 percent of the wine consumed in Argentina is produced domestically, but consumption is dropping. Later, because the foreign wine can be imported so that people do not want to buy local wine any more. As we all known, in 1970, The GDP value of Argentina is $1,317, while in 2013, the value of GDP is $14,715, which is a significant increase

Because consumer’s tastes began to change and wine consumption fell 20 percent so that winemakers began to concentrate on quality, on controlling and educing yields, and on exporting specialized wines throughout the world. The opportunities Argentina presents are attracting foreign investors from around the world. They use the low cost land. Vintners also have the autonomy to plant whichever variety they want. Michael Evans is a good example that he does not operate a winery per se, however. Instead, he leases plots to investors who get to choose the varietal and develop the brand. These factors have helped grow Argentina’s wine export quite rapidly in recent.

2. What level of economic freedom (refer to Table 2-3 on Page 42 and related text for definition and measurement of the term) do wine producers enjoy in Argentina? How about their counterparts in other leading wine producing countries?

I think wine producers in Argentina enjoy lots of freedom. First, They can use the low cost land. Vintners also have the autonomy to plant whichever variety they want. It rarely allowed in Europe. It is a free competition. From the table, we can figure that Argentina was ranked 138 on Table 2-3, whereas France No. 64, in Index of Economic Freedom – 2011 Rankings. Compared with other...