Homework Assignment

1166 Words5 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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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
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