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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For example, government officials have given themselves the power to use bribes as a form of expansion in new areas of business. All in all, Venezuela’s market will not being growing anytime soon until several key factors are changed. For growth to occur, Venezuela must turn into a fully free market instead of a partly free market in existence right now. Also, Venezuelan government must be free of corruption and privatization for growth to occur as well.
Another country that is struggling with future growth is Kenya. Kenya is the fourth most corrupt country in the world according to Transparency International’s rankings. Not only has Kenya experienced slower than normal economic growth rates due to a lack of tourism, and also has been dealing with corrupt officials. A survey done by Transparency International said that seven out of ten people paid off a public official in 2013.
Question 4: Currently, Venezuela is benefiting from a boom in oil prices. What do you think might happen if oil prices retreat from their current high level? (3 points)
Venezuela benefitted immensely from a boom in oil prices and became one of the world’s biggest oil providers. Therefore, Venezuela became very rich as a country and used that money to expand social programs and much more. Chavez may have done more harm then good by disallowing foreign companies to compete in the Venezuelan oil
The “Bolivarian revolution” revolves around the rise of the leftest movement which started with Hugo Chavez, and soon many other leaders rose to the occasion. The sole purpose of this movement was to help Latin America get rid of dictators and reestablish under Simon Bolivar's ideals of making Latin America not a colony but a nation for the people residing in it. Now that Chavez is dead, I believe that he was able to complete Bolivar's conquest of freeing Latin America. Now that Chavez has passed away, he has left both good and bad implications, but I believe its more good than bad. “The real opposition to Chavez is from the United States which was so angry at the way that he built up a credible alternative to the U.S. idea of free trade with
Venezuela, located in the Latin American region, is a country that has been characterized by its abundance of oil reserve. A natural resource that has shaped the history and development of the country, affecting its economic, social and most important is political spheres. For many years Venezuela was controlled by authoritarian regimes. The country, being very important in the sense of geo-politics due to its abundance of oil, has been a key player in the international arena and most important, to those that for many years kept the country under their regime. It was not until 1958 that Venezuela experienced the change to democracy and a stable democracy was kept between the two main political parties of the time, Accion Democratica (AD)
His strategy has always been to appeal to the electorate (which is why I say that he is not a "dictator" because almost everything he has done has had the support of the majority of the population). In this case, by appealing to the resentment sense that the population had towards the party system he called for a National Constituent Assembly. His first goal was to get most of the Assembly through the manipulation of a system of election of delegates. By this, he obtained the 93% of the seats in the assembly, giving him the freedom to make the changes. Some of the most important changes were the elimination of the Senate in its place he created the National Assembly. Chaves replaces the party system that had been established in Venezuela for nearly half a century. Taking advantage of the resentment of the population toward the parties, managed to strengthen the powers invested in the figure of the president. This gave him the power to make laws or declare a referendum without the need for support from the legal system. This in turn, will make things easier because there was no system of checks and balances. In the referendum conducted in 2009 to the executive branch led by Chavez was given the ability to dissolve the National Assembly too. Also, he gained control of the attorney general, comptroller general, and the militia and the National
Venezuela is considered a federal republic. It has five different branches of government; the executive, legislative, judiciary, electoral and citizen. Like in the United States, the president of Venezuela is the head of the executive branch. Although both America and Venezuela elect their president by popular vote, there is one big difference. The 22nd Amendment of the American Constitution sets a clear, two-term limit. On the other hand, President Hugo Chavez won a constitutional referendum to eliminate term limits. Due to this change, he was able to remain in power from 1999 to 2013. When former President Hugo Chavez died, Nicolas Maduro took his place as the president.
him great perspective of a ruler. Venezuela was a significant oil exporter and in the 1980s, there
Hugo Chavez was well known for being a savage and ruthless dictator. He lied and used direct propaganda, aimed at the lower classes to build a majority vote. These methods are similar to the way Napoleon told the animals what they wanted to hear, when they wanted to hear it. Once in a role of authority, they both contradicted themselves by doing things they said they would never do. There are numerous dictators that come to mind when people think of infamous dictators, but Hugo Chavez is probably not one of them. Although, his actions match those of Joseph Stalin, one of the most prominent dictators in world history.
Although Bolivar’s ideas were unique and seemed beneficial, implementing these ideas would not be an easy task; his main goal was to enforce democracy. His main ideas for Venezuela would be to set up a democratic federation, which would give “the rights of man, ability to maintain the balance of powers, and writing general laws favoring civil liberty, freedom of the press” (pg. 21). Out of the American
Venezuela one of the largest countries of south America was founded according to many historian by Christopher Columbus who was on his third travel to reach the south America searching for gold. Caracas, one of the most populated and most dangerous city in South America is the capital. Because of the beauty and the economic potential that made this country one the most powerful economic attic of the metropolis; it has been flatted by many Spanish travelers who settled their base there to grasp the fruit of the economy. Simon Bolivar known as the liberator of South America engaged himself and his troops in a battle for the freedom of the Venezuela. Therefore, in 1810 Venezuela has been declared officially independence and became republic in 1830. Over the course of the years, this country has known many political government with different ideology from the dictatorship of Juan Vincent Gomez known as “el bagre” to Rafeal Cardera, the predecessor of Carlos Andres Perez. Venezuela has known an economic momentum with the production of cocoa, coffee, cotton and oil. When Hugo Chavez came to power in 1999, his goal was to reinforce that momentum economy in order to bounce the social lower class. With that, he created a lot of social and economic opportunities for the lower class in the name of socialism. The government of Chavez seeks to expand the socialism political throughout the country in order to increase his popularity. The socialism system can be helpful for the lower
Chavez primary objectives in the 1960s were to fight for the rights of the workers. This was regarding treatment and their wages. In regards, he formed National Farmworkers Association (NFWA) which was a driving force to fight for the workers’ rights. He arranged for strikes in the large farms to put forward the wishes of the workers such as being allowed to have unions and engage in collective bargaining powers. The boycotts and strikes were nonviolence. He was agitating for dignity, justice and respect to workers. As a result of his efforts large growers entered into negotiations, signed contracts, higher wages and were given union representations. Other notable benefits are health insurance plans and even
A solution to the problem could be stabilizing the currency. Currently, inflation is so exorbitantly high, that the black market ends up accounting for much of Venezuelan profit, which obviously is detriment to the economy. Therefore, it is suggested that Venezuela should let their currency float, which will substantially decrease the inflation rate. In terms of political solutions, it is important for the opposition parties to persevere to ensure that people like Maduro do not maintain power. Until Venezuela stabilizes, which is not predicted to happen until the 2020's, it is crucial for countries like Canada to help Venezuelan
Throughout this assignment, our job as students was to develop a plan in order to have knowledge about the country we were planning to discuss, the country I decided to talk about in this assignment is Venezuela. Venezuela was given the name of Bolivarian Republic of Venezuela since 1999. Venezuela is located on the northern coast of South America, the country is compromised with numerous islands from the Caribbean Sea. It borders Brazil from the south,Colombia from the west and Guyana from the east. A little history about Venezuela, this country became a Spanish colony in the 1520’s. In 1830, Venezuela withdrew from Gran Colombia and became an independent republic. Most of Venezuela’s 19th century history was characterized by periods of political instability, dictatorial rule and then followed by a succession in the first half of the 20th century(CountryWatch). Hugo Chavez became president in 1999 and continuously became elected until 2013, the current president of Venezuela is Nicolas Maduro(CountryWatch).
The current political landscape in Venezuela is an alarming step backward for Democracy in Latin America. While Venezuela has the richest proven oil reserves in the world, the country 's citizens are literally starving to death due to food shortages. While in a traditional democracy this would lead to the political leaders being ousted from power, Venezuela 's President has seized more and more control, shifting the country towards an authoritarian regime. Venezuela had been slowly moving towards a free democracy with the Punto Fijo regime (1958 – 1998), but the movement was set back by rampant corruption and the failing credibility of the country 's political establishment. This led to the rise of
The history of Venezuela is a long and tumultuous one, and accurately paints the picture of a country in disarray. From it’s colonization in 1498 up until 1958, the country shuffled between a long line of military dictators. At this point, the last of them was finally overthrown,
With an economy dominated by the production of oil, Venezuela has enjoyed the highest standard of living in Latin America. In spite of its success in the oil industry, agriculture and manufacturing also play important roles in Venezuela’s economy. With this in mind, it would seem as though Venezuela’s economic state has flourished. Rather, it has suffered from the effects of political influence, corruption, and poor economic management. The distribution of wealth across Venezuela has caused the elite to benefit at the cost of the working people. This is mainly due to the economic and political structure of the country. Even with the plentiful resources Venezuela possesses, it is constantly being threatened by political instability,
The main purpose of the following report is to provide information about the profile of The Bolivarian Republican of Venezuela; in order to study the current situation of the country for further investigations in the future that may help to understand the opportunities and risk involve in importing and opening new markets in Venezuela.