Argentina’s DJIA system for imports and supply chain impact

An article in Bloombergbusinessweek (November 12, 2012) describes the DJIA system (initials of the Spanish law) that requires each importer to compensate with an equivalent amount of exports. Thus, a bicycle manufacturer who imports parts compensates with the export of an agricultural component, a BMW importer exports processed rice, a Porshe importer who exports olives and Malbec wine etc. But exporters like Brazil who are impacted, blocked olive imports thus hurting the olive manufacturers in Argentina. The net impact is higher prices in Argentina, lower growth rates and shuffling of existing exports to link to importers without an increase in overall exports. How should importers in Argentina link with exporters to improve overall supply chain profitability ? How should this linkage be administered to prevent shuffling of exports but increase exports ?

About aviyer2010

This entry was posted in Global Contexts, Operations Management, Supply Chain Issues and tagged , , , , , . Bookmark the permalink.

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