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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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Benefits:

1) The key benefit of Mercosur, just like any other regional treaty, is the opening up of significant market growth opportunities within the region. The companies in Venezuala will have preferential access to large markets of Brazil and Argentina. Further, the access to large integrated market will result in significant economies of scale to the businesses of Venezuala.

2) Venezuala will also get access to large source of financing for development in the country. The proposal to build a new regional bank for nations frustrated with conditions imposed by the International Monetary Fund (IMF) will benefit countries in the region. Argentina, Brazil and Venezuela have already committed 70 million dollars in reserves to get the bank up and running. The regional financial institution will finance infrastructure projects and business investments in those countries at a low interest rate. The bank may function as an alternative to structural adjustment policies ...

Solution Summary

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.

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