There are few legal restrictions on foreign businesses in Argentina, but the recent business climate, due largely to the government’s debt default and banking restrictions, has not been conducive to investment.

In country risk assessments, featured like sports scores on the front page of many newspapers, Argentina has ranked among the world’s highest—in August 2002, this key statistic soared to 7,222 compared to 1,200 for its beleaguered neighbor Uruguay and only 150 for Chile.

In September 2003, after more than a year of relative stability, the country risk was still 5,100; by late 2006 it had fallen to about 289, nearly the lowest in Argentine history, but this still contrasted with Chile’s 57 and Brazil’s 211. Following the 2009 global recession and the Fernández de Kirchner administration’s clumsy attempt to fire Central Bank president Martín Redrado in early 2010, the figure rebounded to 1,426, as opposed to Chile’s 96, Uruguay’s 231, and Brazil’s 326.

Corruption remains an issue, as a Transparency International survey for 2009 ranked Argentina 106rd of 180 countries evaluated, on par with several African countries. Political officeholders have an unfortunate reputation for shaking down foreign companies for bribes, and customs procedures can be trying despite efforts to professionalize the service. Intellectual-property rights for computer software, CD and cassette recordings, and DVDs and videotapes are problematic.

Good background sources on business, at least for those who read Spanish, are the businesses dailies mentioned under Media later in this section, and the magazine Mercado (www.mercado.com.ar). The most accessible English-language source is the U.S. State Department’s Country Commercial Guide service (www.export.gov), though it often lags behind events. Its best bets for investment include travel and tourism services, hotel and restaurant equipment, computer equipment and software, alternative energy technology, medical equipment and supplies, residential building materials and supplies, sporting goods, and biotechnology.

Some investors believe that Argentine businesses may offer high yields on investments because devaluation has depressed prices in dollar terms. Residential real estate, for instance, has experienced a boom, though that has also meant rebounding prices. In any event, before signing any business deal, consult a local lawyer recommended by your embassy, consulate, or a trusted friend.