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    Plan for Venezuelan business

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    As a Venezuelan business owner (you may select the specific business of your choice), you are very interested in the fact that Venezuela has recently been accepted as an associate member of MERCOSUR (July, 2004). You need to prepare your operations in view of this new reality.

    Develop a plan for your business that will be implemented as Venezuela becomes part of MERCOSUR. Your business plan should include the following:

    Benefits and drawbacks for the country of Venezuela as a result of their membership in MERCOSUR
    Benefits and drawbacks for your business as a result of their membership in MERCOSUR
    What adjustments will need to be made to your business as a result of this?

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    Overview of the Venezuelan Economy
    The Venezuelan economy is largely based on oil and petroleum products. It has vast reserves of petroleum and natural gas. Petroleum accounts for the lion's share of exports and also supplies inexpensive energy to the country's industries. Petroleum is responsible for about 80% of the export income, 50% of government revenue, and roughly 30% of the gross domestic product.. Other exports are iron ore, bauxite, aluminum, coffee, cocoa, rice, and cotton. Venezuela imports a variety of manufactured goods like machinery, vehicles, chemicals and also food. From the 1950s to the 1980s, the Venezuelan economy was one of the strongest in South America but the economy went into a tailspin after the fall in oil
    prices in the mid-1980s. Lower oil prices in the world market had forced Venezuela to take reform measures to liberalize its economy. Economic liberalization has led to a significant opening of the trade regime. Venezuela is the world's fifth largest oil producer, and the recent rise in crude oil prices has helped boost its economy. The Government is using oil revenue to develop heavy industries in the steel and aluminum sectors and also to spur growth in the manufacturing industries and in food processing. It is also trying to revive its agriculture sector on which it is highly dependent. Both coffee and cocoa crops ...

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    This provides help to prepare the plan for Venezuelan business