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In the Spring of 2002, Argentina Was Forced to Devalue

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Essay

In the spring of 2002, Argentina was forced to devalue its peso and disband its currency board that was responsible for the fixed exchange rate between the peso and the U.S.dollar.Explain the origin of this crisis and the painful remedies that Argentina has had to endure.


Definitions:

Average Operating Assets

A metric calculated as the average value of the assets involved in generating operating income over a specific period.

Net Operating Income

A measure of a company's profitability from its regular business operations, excluding deductions of interest and taxes.

Gross Margin

The difference between revenue and cost of goods sold, used to cover other expenses and profits.

Sales

The total amount of goods or services sold by a company within a specific period.

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