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    Venezuela joins MERCOSUR

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    I need help developing a plan for any selected business that will be implemented, as Venezuela becomes part of MERCOSUR.

    I'm looking for help with the following questions:

    - Benefits and drawbacks for the country of Venezuela as a result of their membership in MERCOSUR.
    - Benefits and drawbacks for the selected business as a result of their membership in MERCOSUR.

    - Despite the difficulties, many technology companies experienced when the dot-com bubble burst - Internet commerce (e-business) is here to stay. I need help figuring out what resources do an International Internet retailer need other than merely a storefront on the Internet? Does it require fewer physical, financial, and human resources than a traditional retailer, or just as many? Please help me to explain this.

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    Solution Preview

    Please see response below (which is also attached, which has other links and information to consider as well). and two supporting articles.


    Let's take a closer look at information that you can draw on for your final copy.

    a. Benefits and drawbacks for the country of Venezuela as a result of their membership in MERCOSUR

    Background Information:

    Venezuela was one of three countries that emerged from the collapse of Gran Colombia in 1830 (the others being Colombia and Ecuador). For most of the first half of the 20th century, Venezuela was ruled by generally benevolent military strongmen, who promoted the oil industry and allowed for some social reforms. Democratically elected governments have held sway since 1959. Current concerns include: a polarized political environment, a politicized military, drug-related violence along the Colombian border, increasing internal drug consumption, overdependence on the petroleum industry with its price fluctuations, and irresponsible mining operations that are endangering the rain forest and indigenous peoples (http://www.cia.gov/cia/publications/factbook/geos/ve.html#Issues).

    MERCOSUR: Mercosur was created in March 1991 by Argentina, Brazil, Paraguay, and Uruguay. Comprising a population of approximately 200 million and with a combined GDP of about $851 billion, Mercosur is the world's third largest integrated multinational market after NAFTA and the European Union. Mercosur currently functions as a customs union, providing not only for a free trade area but also for the establishment of a common external tariff.(3) Mercosur countries are committed to coordinate macroeconomic policies and to agree on a common foreign trade policy. Unlike NAFTA, Mercosur lacks agreements on intellectual property rights(4) and government procurement. ( see for more detail on benefits of joining http://waysandmeans.house.gov/legacy/trade/105cong/7-22-977-22heck.htm).

    (See attached article "Venezuela" - first article discusses some of the potential barriers, as well as benefits http://www.mtholyoke.edu/acad/intrel/mercosur.htm).

    From another source:

    Benefits for Venezuela joining the MERCOSUR:

    * The first benefit is the creation of trade, basically what this means is that ...

    Solution Summary

    This solution examines the implications of Venezuela and a company becoming a part of MERCOSUR, including potential strengths and drawbacks. Supplemented with three highly informative articles.