Zip-6 management has been approached with a proposition to buy out a Venezuelan soft drink manufacturer and bottler. The selling price, however appears to be slightly below book value for the assets. There are wide spread concerns that Zip-6 should consider when making a decision to do any business in Venezuela. Currently the concerns include a weakening of democratic institutions, political polarization, a politicized military, rampant violent crime, overdependence on the petroleum industry with its price fluctuations, foreign exchange controls that discourage private-sector investment, high inflation, a decline in the quality of fundamental human rights, and widespread scarcity of consumer goods.(cia.gov) Below is a report detailing my investigation of the legal, political, and economic climate in that country that Zip-6 management needs be made aware of.…
Jordan, James. 2007. Venezuela: Democracy or dictatorship. Green Left Weekly, (November 29), http://www.greenleft.org.au/2007/734/38002 (accessed February 18, 2010).…
Patagonia was successful throughout the recession because of their loyalty. They stayed loyal to making environmental friendly products. This helped them greatly throughout the depression because those staying loyal also meant that the customers would stay loyal to the company. The customers would keep paying for the product because it was durable, environmentally friendly, and getting what one is paying for. Also they found money efficient ways to save cost in producing products, such as recycling old products to help produce a new one. All of these in which helped them thrive through the depression which out having to go into debt. They also monitor that…
“With 64% of the votes counted, there was no longer room for doubt” ( Marcano 3) Chavez had won the election of 1998 against his opponent Henrique Salas Romer. As the new president of Venezuela, there were many challenges that he was going to face. But despite the lack of knowledge of the government or being a politician, he began pursuing this career always wearing a military uniform. “Invoking the memory of the Latin American Libertador Simon Bolivar, Chavez vowed to end corruption” ( Marcano 3) Many of his followers were from the working population who were able to identify themselves with the active military president. Chavez had expressed his dream, since the beginning of his election of having “ a country free of poverty” ( Marcano 3) which will continue to raise support from those who were in the working class. Many people saw him as the ideal candidate because his appearance of a strong military yet charismatic president entices the part of the population that were tired of…
Cesar Estrada Chavez was born March 31, 1927 in Yuma, Az. He died at age 66 on April 23, 1993 in San Luis, Az. Co-founded the National Farm Workers Association with Dolores Huerta. Cesar Chavez was a farm worker, labor leader, and civil rights activist. He is the best-known Latino American civil rights activist. His slogan was “Si, se puede” (“Yes, it is possible”). Since his death in 1993, California, Colorado, and Texas celebrate March 31 as Cesar Chavez Day. In 1942, Chavez graduated middle school and became a full time migrant farm worker. In 1952, Chavez stopped working in the fields, and began working for the Community Service Organization (CSO); Chavez became the program director in 1958. He encouraged Mexican Americans to vote while promoting workers rights. In 1962, Chavez joined forces with Dolores Huerta to form the National Farmers Association (NFWA) which was renamed United Farm Workers.…
When Trujillo assumed power, the economic situation was appalling in all its aspects. On the one hand, customs, banking and major companies were controlled by US investors. On the other hand, the State had no monetary reserves, plus the economic effects of the San Zenón cyclone and the world economic depression of 1929. The situation prompted the government to enact an emergency law in 1933, Through which it tried to negotiate in 1934 the readjustment of the external debt. With both measures, the economic policy of the government began to be delineated, explained as "a particularized capitalist system" that descended to the level of personal property, because Trujillo became the great territorial proprietor at the same time that made of the…
The concept of education system refers to the overall structure by which teaching is organized in a country. Between the United States and Venezuela there are numerous differences in the education system from different aspects such as size of school, dress code, classes, grade system, laws among others.…
Do you know that Venezuela could be one of the richest countries in the world? Venezuela is one of the countries that has one of the most profitable products in the whole world. Venezuela depends mostly in the price of oil to keep their economy afloat because it is one of the products that makes countries economies high. Surprisingly economy in Venezuela is really terrible because there’s not globalization. They are too many problems going on there: some of these problems are affecting the majority of Venezuelans because there is not education for everyone, the children are forced to work, there is a food crisis and the oil prices are really low. My solution to fix Venezuela’s economy is that the government have to create a new system to…
as a Major Oil Power.” http://www.nytimes.com/2013/03/09/world/americas/venezuelas-role-asoil-power-diminished.html New York: The New York Times. Accessed 19 May 2013.…
[2] Kumar, N. (n.d.). Global Economic Outlook Q3 2013. Retrieved from Brazil: Problems mount website:…
Officially called the Bolivarian Republic of Venezuela, the fourth largest country in South America is located on the northern coast of the continent and with an estimated population around thirty million citizens. The spanish speaking country is one of the most urbanized in South America with the majority of the population living in and around Caracas, the country’s capital. Venezuela is best known for its vast natural resources, specially its reserves of crude oil and gas, making it an important producing and exporting nation. In this friendly and welcoming country, baseball is the most popular sport, alongside basketball and soccer. But the undisputed champion in popularity is the Miss Universe contest, with many wins in recent past by the beautiful women of the country. What is far from attractive is the desperate and chaotic situation that surrounds the nation, recently marked by violent protests from young students and government opposition.…
Mexico gained independence in 1821 after it ruled by Spain for three centuries. Then it started creating the future of this new nation. However, Mexico lost half its territory, in which most of them was occupied by the United States. Then, it ushered the crucial event, the Revolution of 1910, which leads to the positive changes in its politics. After the rule of Lazaro Cardenas in 1934, he grants many benefits to peasants and encouraged workers to pursue better working conditions (p. 410). This period also witnessed the development in industry and agriculture. The turmoil in the oil market brought the economical crisis for Mexico in the late 20th century. It experienced the reforms in electoral processes and institutions, which contributes to the fairness of the election. The hope of Fox to improve the relationship and cooperation between Mexico and America failed after the events of September 11, 2001. Now the Mexican president paid much attention to the security and stability of the country.…
Venezuela was once the richest country in Latin America. It has the largest oil reserves in the world and its democratic government was once praised worldwide but today, Venezuela’s democratic intuitions and its economy are in shambles. The country has the highest inflation in the world, making food ,and medicine inaccessible…
An abundance of natural resources and labor forces never necessarily entails a country’s economy. More specifically, South America faces poverty due to the a few factors of production, land, labor, and capital. People’s first instincts would be to say that South America is not “poor” due to its high supply and demand of natural resources. However, poverty exists due to much more than that. From an economic standpoint, South America is not only reluctant to selling all of its natural resources, but they are also willing to create sustainability for future generations.…
Capital control is an action taken by the government, central bank or other regulatory bodies to limit the inflow and outflow of foreign capital in the domestic economy. These controls include outright legislation, tariffs, restrictions on volume, taxes and market-based forces. These actions allow a country to preserve a fixed rate of exchange for its currency without risking its holdings of foreign currency reserves or hard currency. The problem, however, is that this control or preservation comes at a substantial cost, as many investors will not willing to invest the same levels of funds in that country.…