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This seems to say, at least implicitly, that MELI’s exposure to the Argentina government is a limited risk. Is this a correct reading of your view?

Yes. MercadoLibre is headquartered in BA for no better reason that Marcos likes living there. The company is listed and incorporated in the US, has its servers in the US, and derives only about 10% of its revneue in that country.

What would happen if Argentina imposed a 70% or 90% tax on the worldwide income of MELI?

Legally, Argentina has no claim on MELI's income unless that money is repatriated into the country. Usually, MELI leaves the money it makes in a country in that country. They broke this rule of thumb recently to get money out of Venezuela, and paid a significant tax bill to do it, but that was probably worth it.

In other words, the only part of MELI that is at risk in Argentina is the money that MELI actually makes from selling things in Argentina. Argentina has no claims on the business in Brazil or Mexico.

Tim
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