Venezuela Economy Essay

They produce an estimated 2.8 billion barrels of oil a day. Half of Venezuela’s income comes from oil industry. Venezuela depends on oil which is terrible because if the oil runs out there country will be

Venezuela was once Latin America’s richest country because of its production of oil. Internationally, Venezuela was positioned ahead of Saudi Arabia as a country who had the largest oil reserves because the Orinoco belt contained an estimated 1.2 trillion barrels of oil. After the oil prices climbed to $100/bbl. in 2007, former President Hugo Chavez took this as an opportunity to seek more revenue which the government was using to fund the welfare programs it offers its citizens such as food, housing and services for the elderly that are also beneficial to refugees. However, when oil prices plummeted to barely $50/bbl., Venezuela’s oil production fell to 2.6 million BPD, which is a more than 20% decrease than average. This economic crisis lead

The CIA World Factbook states that Costa Rica's Gross Domestic Product (GDP) per capita is US$12,900 (2013 est.); the reported GDP summed in 2012 to US$45.1bn with a population of 4,805,000.[7] The World Bank General Government Public Sector Debt (PSDGG) statistics showed a linear rise from US$8bn in 2009 to US$18bn in 2014, which translates to a growth rate of 12%.[8] The Instituto Nacional de Estadística y Censos is charged with measuring other economic performance measures.[9] Poverty has remained around 15-20% for nearly 20 years, and the strong social safety net that had been put into place by the government has eroded due to

Formerly under control from Dictator Hugo Chavez, and now currently under control by Nicolas Maduro, With an estimated 34.2% of the GDP accounting for the public debt, and an extremely high inflation rate of 56.2% in 2013 raising from 21.1% in 2012, it is obvious that the policies and programs aren’t working out for the country. Poor leadership in Venezuela has driven the country’s economy into a downward spiral. Having one of the larger resource endowments among the developing countries, it is questionable how there are so many problems with its economy. Since the 1920s Venezuela’s economy has been primarily driven by their vast availability of petroleum. Being a member of the OPEC, Venezuela’s main export is oil. The powerful oil industry in Venezuela is driven by their state-run petroleum company Petroleos de Venezuela S.A PDVSA. Venezuela sits on top of the world’s largest oil reserves and this oil based economy accounts for roughly 50 percent of government revenue, 95 percent of Venezuela’s exports, and 25 percent of Venezuela’s GDP, just in oil alone. With a population of 29.9 million people (estimated in 2012) the country has a per capita GDP of $12,756. Venezuela is highly dependent on oil revenues, these oil revenues account for around 96% of all export earnings. Venezuela’s development faces various challenges being a

Venezuela’s economy revolves mainly around oil production. It sits on one of the world’s largest known oil deposits and is one of the largest oil exporters.1 Recently the significant drop in oil prices have caused significant inflation. The International Monetary Fund estimates that inflation will rise to 720 percent this year up from 275 percent last year.2 This has resulted in a shortage of many basic supplies such as food and medicine. The country is also facing an energy crisis at the same time.

There were four key points relevant to the readings that were apparent in the simulation. A country’s debts are usually judged in comparison to their assets. (Colander, 2006) The simulation involved certain aspects of such when corn was considered to be in excess from importation. Surpluses were also identified when one country was considered dumping their imports of watches onto the country of Rodamia. This endangered the local watch industry as prices from the imported watch goods were undercutting the local market. In order to level the excess, tariffs were set. Protectionism was also discussed as fledgling markets of Rodamia, such as corn, was in need of growth. Once again the use of tariffs and quotas were set in order to protect the local industry. Outsourcing was also touched upon as free trade agreements could possibly open jobs in weaker neighboring countries that can offer comparative work as well.

What would happen to Venezuela if the oil disappears? Venezuela is going through a very critical situation in which the economy is being affected. One of the reason why the situation in the economy in Venezuela is so urgent right now is because they are depending 96% on oil. That is one of the reason why in Venezuela, the people can’t buy basic product. To solve this problem, Venezuelans should find a way to expresses their voice in the “Organization of the Petroleum Exporting Countries” (OPEC) because that is the organization that has the power to raise the prices of oil. Another way that this problem can be solved is that Venezuela must stop depending only on oil because, they can use other natural resources which will greatly

Venezuela is located on the north coast of South America. It is a very interesting country, since it possesses many unique attributes and resources that other countries in the region do not. There are several different systems that represent these resources and attributes. Major Kris A. Arnold (2006) states “PMESII is (sic) military acronym listed in several joint and service publications, which evolved from a systems perspective, and equates to the political, military, economic, social, infrastructure, and information systems of states. The acronym provides a starting point for identifying key interrelated systems of an adversary and facilitates analysis and kinetic and non-kinetic targeting”. Venezuela is an especially interesting case due to the political system in place, in addition to the unique economic power that the nation has.

Venezueal sees Bolivia as its suburbs of economic policy based on the energy riches of these two republics (Venezuela - oil / Bolivia - Natural gas). Venezuela conceives its geopolitical space a rather broad and ambitious as it primarily relies on its oil wealth. Energy nationalism its potential considerably damaged. In this respect, compete with Brazil and recently with Colombia about an oil influence in the Latin American area. The driving venezuelan force has two positive and one negative aspects. These positive factors is its integrative dynamics and ability to fill national budget of petrodollars. The State is aware that the main raw materials are the most valuable natural resources - oil, natural gas, iron ore, gold, bauxite, coal and other minerals. Its negative component directed to the ideological

The oil-rich Bolivarian Republic of Venezuela, located on the northern coast of South America, was for many decades considered among the wealthiest nations in the entire continent. While having the largest proven oil reserves in the world has often proved a tremendous boon for Venezuela, the very black gold that has been the cause of its success has also proven to repeatedly be its kryptonite. Over half of the nation’s Gross Domestic Product stems from petroleum exports – which equates to approximately 95% of total exports. It is really not too hard to imagine what drastic consequences shifts in global oil prices could have on the economy.

This research paper will describe the demography, labor force and the business cycle of Mexico. Mexico is a federal republic, and it consists of 31 states and the Federal District. The Constitution established separation of powers. The country itself has a perimeter of 761,602 square miles. Mexico underwent an increase in purchasing power living standards, as well as reforms in energy and telecommunications passed by recently elected President Enrique Peña Nieto. Besides the reforms, the manufacturing sector

Venezuela has the world’s largest oil reserves and by 1960, it became the wealthiest country in Latin America. Petróleos de Venezuela (PDVSA), the state owned company, was the key to economic and social development in Venezuela under president Hugo Chavez. His government was settled in an environment where the oil prices were rising and the economy was booming, so he was able fund social programs and practices that were popular to the poor masses. This wealthy and growing Venezuela made Chavez to be very popular and his regime very powerful. Oil revenue accounted for nearly 90% of exports, more than 50% of government revenue, and 35% of country’s GDP.

Venezuela Economy Approximately 13% of Venezuelans are involved in farming. The main crops planted are corn, sorghum, sugarcane, rice, bananas, vegetables, and coffee. There is also extensive livestock rearing and fishing. Venezuela's mountains long hindered the nation's economic development because of the communications problems they faced. The country has developed a fine highway system, but goods are still carried mainly by ship. Venezuela has the second largest petroleum reserves in the world, and oil accounts for about 90% of the export income, 50% of government earnings, and 30% of the gross domestic product.

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,

Venezuela is facing serious inflation within the country due to the ever dropping currency, thus companies and firms are having to pay or spend than the usual to do the regular procedures. Some of the huge companies in Venezuela like Kimberly-Clark (KMB), Pepsi are beginning to shut-down business operations due scenario they find themselves in describing it has “financial barrier”.Despite having the largest oil reserve in the world, Venezuela still having go through a lot of expensive procedure to refine their oil because the oil found there is viscous and difficult it has to be mixed with several oil types from the before it can be used. This process has been made harder to perform because of the economic crisis making Venezuela experience cash shortages.