Country Analysis

Geographical

• Uruguay is a South American

nation located in the Southern
Cone of South America. Its
neighbors are Brazil to the north,
Argentina to the west and
southwest, and the Ro de la Plata
to the south.

• An estimated 3.4 million people

reside in Uruguay, which has a
land area of around 181,034
square kilometers (69,898 square
miles).

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Advantage

● Free Trade Zone

● Easily accessible from major

cities in Argentina and Brazil

● Countless shiny White Beach

● Top Notch Beef because of

natural grass

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 Disadvantage Natural Resources
● Uruguay's greatest
● Massive Winter natural resource is its
fertile land, with much of it
● Dominated being used for agriculture
and livestock production
telecommunicatio
n Market ● Uruguay's mineral
commodities include clays,
semi precious gemstones,
● Household are gold, iron and steel, sand
expensive and gravel, and stone

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 Economic Integration
Economic integration is the unification of economic policies between different states.

URUGUAY'S BIGGEST ALLY AND WHY?

Uruguay is a member of Mercosur, Uruguay's most important political and economic

partners are its neighbors, Brazil and Argentina. Argentina, Brazil, Paraguay, Uruguay,
and Venezuela are full members of MERCOSUR, the Southern Cone Common Market,
which also comprises associate members Chile, Colombia, Ecuador, Guyana, Peru,
and Suriname.

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 TOP EXPORT/IMPORT
● Top Export - Beef Uruguay's main imports are:
The most common destination for exports in Uruguay is
❖ China ($1.79B), ❖ Crude Petroleum ($728M)
❖ Brazil ($1.02B), ❖ Packaged Medicaments
❖ United States ($558M), ($348M)
❖ Netherlands ($387M),
❖ Argentina ($361M). ❖ Cars ($241M)
❖ Broadcasting Equipment
($236M)
❖ Pesticides ($161M)
● Importing mostly from Brazil
($1.79B), China ($1.56B), United
States ($1.03B), Argentina
($1.01B), and Germany ($272M).

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 TRADE BLOCS

IS YOUR COUNTRY A MEMBER OF ANY TRADE BLOCS? WHICH ONE?

➢ Uruguay is in a trade bloc agreement with Mercosur, also known as the

Common Market of the South

WHAT ADVANTAGE ARE THEY GETTING AS A RESULT OF THAT TRADE BLOC?

➢ When the MERCOSUR free-trade area launched in 1991, Uruguay,

Argentina, Brazil, and
Paraguay were officially linked, enabling free trade between them. The trade
Agreement is so
attractive to investors as it lowers tariffs between the countries involved and
increases trade.

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 Trade Blocs
What is your country offering to your partner countries of Which level of Economic Integration is your Trade Bloc in?
your Trade Blocs?

➢ Uruguay's offerings to the other partner countries of their ➢ As Uruguay is a member of the Common Market of the
trade blocs are based on the agriculture South (Mercosur). Uruguay has a mixed economic system in
sector as their economic base is its agriculture sector exporting which there is a variety of private freedom, combined with
products such as meat, cellulose, centralized economic planning and government regulation.
grains, dairy wood, pharmaceuticals, and services. More than
60 percent of Uruguay's total
exports are agricultural-based products.

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 Culture
● The dominant language of Uruguay is Spanish. More than
90% of the population speaks
Spanish.

● Uruguayan cuisine is undeniably meaty; beef, chicken, pork

and lamb are widely consumed

● Tango and candombe are the most popular music in Uruguay.

● Many Uruguay Holidays and Festivals are religious in nature,

such as Epiphany and Holy Week.

● Uruguay gave a laptop to every primary school student.

● Before visiting Uruguay a tourist should know about currency

exchange places in
Uruguay.

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Culture in terms of Hofstede’s Dimension

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BENEFITS
• Stable, democratic
political system
• 18th safest country in
world to invest in
• Stability and reliability
of political and economic
environment
• Macroeconomic
soundness

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 COST
• Uruguay has a tiny market (3.5
million people, half of whom live in
Montevideo, the country's city); it
lacks trade financing; its labor laws
are rigid; its wage-setting options are
restricted; and its tripartite salary
committee influences wage inflation.
• The hefty taxes and levies Uruguay
imposed on imported goods is
another issue.
• Retail sales prices are subject to
local taxes like the value-added tax
(VAT) and the excise tax (IMESI).
Prices for some imported goods may
increase dramatically as a result of
VAT and IMESI.

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 Risk
• A substantial amount of foreign
debt that is vulnerable to market
turbulence and outside shocks.
Also this event is followed by
strong inflation that is
challenging to control (8.3% in
2021 - IMF).
• Over the average for the region,
public debt (68% of GDP in 2021,
according to the IMF) and the
vulnerability in relation to its
exports and the connections
between Argentina and Brazil,
two of its neighbors and fellow
Mercosur members, and their
financial sectors.
3. Strong inflation challenge
4. Lack of trade financing
5. Small market size
6. Inflexibility labor laws
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 Is Uruguay a viable location to invest?
1. According to the British magazine
Euro money, "Uruguay is the 18th
safest country on the earth" and "the
safest place" to spend in Latin America

2. Uruguay's economy has distinguished

itself as having the highest GDP per
capita in Latin America (measured in
current USD).

3. Overseas investors receive the same

incentives as domestic investors.

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 Which sector to invest in?

1. Uruguay’s agricultural
industry serves as its
economic foundation,
exporting items such as beef,
cellulose, cereals, dairy wood,
medicines, and services.
2. Agricultural items account for
more than 60% of Uruguay's
overall exports. Beef and
wool have been Uruguay's
most important exports
throughout its history.

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 Mode of entry:
1. To join the local market, interested
firms should visit Uruguay,
interview possible partners, and
choose a representative/agent. In
Uruguay, business ties and finance
arrangements are critical to
success.
2. In-person meetings are often
preferable; but, when in-person
meetings are not possible,
alternatives exist, such as holding
meetings utilizing video
conferencing tools.

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Thank You