Homework Assignment Essay

1170 Words Oct 20th, 2014 5 Pages
Nick Berardi
Homework Assignment #1
Due at start of class – Wednesday, September 17, 2014
Country Focus & Five Questions
Chapter #2-Country Focus: Chavez’s Venezuela
Page 42
Hill - Global Business Today 8th Edition
Type each question and give answer below question.
Answer the question consistent with the homework guidelines on page 4 of the syllabus.
Management 470-International Business Management
Fall 2014

Question 1: Under Chavez’s leadership, what kind of economic system is being put in place in Venezuela? How would you characterize the political system? (3 points)

Under Hugo Chavez’s leadership, a democratic socialist system was formed. Chaves was a huge advocator for global capitalism beginning when he ran for
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According to the Huffington Post, “The official exchange rate remains fixed at BsF6.3: US$1, but it is virtually impossible to access U.S. dollars at this rate. Many people are forced onto the black market, where dollars currently trade for BsF75: US$1. Difficulty in accessing dollars is ultimately the cause of the shortages, since businesses have been unable to import supplies” (Huffington Post). Foreign companies will stray away from competing with local Venezuelan oil providers like Petroleos de Venezuela SA because of a struggling economy, and also due to Hugo Chavez reducing the stakes held by foreign companies in oil projects.
In other news, we see a similar situation with Russia’s oil industry. According to the Wall Street Journal, Russia is “being prohibited to directly or indirectly purchase, sell, provide investment services for or assistance in the issuance of, or otherwise deal with transferable securities and money-market instruments with a maturity exceeding 30 days.” The EU and United States have teamed up to increase pressure on Moscow to stop engaging with Ukraine. Business in Russia’s oil industry will decline vastly, and it will take time for Russia’s economy to become strong again because a majority of the economy revolves around oil.
Question 3: How will the high level of public corruption in Venezuela impact future growth rates? Discuss each concept and element of the question within the framework of

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