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Venezuelan Business Owner and MERCOSUR

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Details: 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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Solution Preview

Hello,

To help get you started on this interesting assignment, let's look at each of the three sections that your assignment requires you to include in your business plan. It should be fairly easy to take it to the next step to complete your business plan of 3-5 pages. You must choose a business as well. I also attached two extra resources to draw on and several links for further research if necessary.

ASSIGNMENT:

Details: 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:

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.Benefits: 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. Mercosur countries are committed to coordinate macroeconomic policies and to agree on a common foreign trade policy. Drawbacks: Unlike NAFTA, Mercosur lacks agreements on intellectual property rights and government procurement ( see for more detail on benefits of joining http://waysandmeans.house.gov/legacy/trade/105cong/7-22-97/7-22heck.htm).

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

Benefits

Some of the benefits for Venezuela as a result of their membership in MERCOSUR include:

· Creation of trade, basically what this means is that free trade areas create trade that would not have existed otherwise. As a result, supply occurs from a more efficient producer of the product. In all cases trade ...

Solution Summary

In relation to developing a plan for a business that will be implemented as Venezuela becomes part of MERCOSUR, this solution describes the benefits and drawbacks for the country of Venezuela as a result of their membership in MERCOSUR, as well as the benefits and drawbacks for the business as a result of its membership in MERCOSUR. It then discusses the adjustments that will need to be made to the business as a result of this. Supplemented with articles on Venezuela and MERCOSUR.

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