Argentina could increase the rate of FDI in the country by giving positive incentives to investors belonging to different countries, particularly USA, and Canada who already have the major investments in the country. By offering them different incentives, for example tax holidays, free land, eradication of duties on imported machinery, freedom to tack back their investment etc, the government of the country could increase the globalization in the country (CzinKota, 2007). This globalization is vital for the long-term interests of the country due to the fact that Argentina has been gifted with vast amount of natural resources that not only include petroleum and natural gas but also include uranium, platinum, gold and diamonds. However, due to the absence of the desired resources the country has not been in position to fully exploit its natural resources. In addition, the country has been gifted with fertile land and although the agriculture is contributing to the national economy, the fact is that the absence of modern and sophisticated methods of agriculture has been resulting in underutilization of the soil resources.
In addition, the country other problems including unemployment and rising inflation could be resolved through the forces of globalization (CzinKota, 2007). This is due to the fact that globalization is usually associated with the use of modern technologies that are used by MNCs that enable such organizations to produce the desired output at far lesser cost than the existing players in the market produces. Moreover, application of sophisticated production methods by MNCs will lower down the prices in the market and the country will be in position to take rid of the rising inflation that is considered as the major obstacle in the socio-economic development of the people living in the country (Hollensen, 2007). The globalization will results in boosting the export base of the country and the country will be required to import lesser amount of goods as its different needs could be fulfilled within the country. In addition, due to increase in the globalization, the resources of the country will be put in the most efficient areas, as MNCs belonging to different areas make investments in only those projects where the country enjoy the comparative advantage, thus enabling the
best utilization of the scarce resources (CzinKota, 2007).