Explore BrainMass
Share

Mercosur

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

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 ...there is moreshow problemDevelop 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?

© BrainMass Inc. brainmass.com March 21, 2019, 2:31 pm ad1c9bdddf
https://brainmass.com/business/wto-and-gatt/mercosur-125429

Solution Preview

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

The entry of oil rich nation of Venezuela has boosted the this regional trading bloc, comprising of Argentina, Brazil, Paraguay and Uruguay. Many expect Venezuela's entry to boost Mercosur economically with the nation's oil reserves and politically with Chavez's criticisms of the U.S. Venezuela's entry gave Mercosur an ideological spin, incorporating a courageous discourse to confront Pro-Free Trade policies coming from Washington.

The entry has also allowed the Venezuelan economy, among other things, to trade with tariffs that are three times lower among a list of products that could exceed 500 in a first phase. In addition, it would facilitate special co-investment agreements in infrastructure and strategic projects such as satellites, ships, a TV channel of the South, medicines, food and combustibles.

source: http://www.venezuelanalysis.com/articles.php?artno=1214

Venezuela also proposed to build a new regional bank for nations frustrated with conditions imposed by the International Monetary Fund (IMF). 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 imposed by the IMF, which are used as a yardstick to qualify for loans from the IMF and other multinational lending institutions.

Source: http://www.venezuelanalysis.com/articles.php?artno=1783

Close rties to MERCOSUR could serve Venezuela to raise bargaining power on the international political scene in the backwater of Brazil. If the reason is to raise bargaining power it could bean advantage to join MERCOSUR but there is ...

Solution Summary

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

$2.19