Your Company Has Decided to Enter the Argentinean Market with a Product

Essay

Your company has decided to enter the Argentinean market with a product line of automobile accessories.You have decided to use two wholesalers, who will distribute to the retail market.The potential size of the market is $10,000, 000 USD per year.However, both of your wholesalers will not assume the risk of invoices charging USD and they want at least 60 days before paying.They argue that they will have to give their retailers 60 days to pay and their retailers will only pay them in pesos.Argentina has just come out of a currency crisis and your Canadian bank has warned you of possible severe currency fluctuations.What payment and currency strategy will you suggest to your senior management? Explain your answer.