Venezuela is considered a single-product economy at which petroleum represents the 97.8% of Venezuelan exportations; therefore, Venezuelan economy is highly dependent on the oil market. This high dependency is caused by the lack of incentives from the government to expand the production spectrum of Venezuela´s economy, plus the implementation of a currency exchange control since 2003. As a result of the country´s singular production, and the limited and scarce internal production of goods besides oil, Venezuela depends on importations to supply most of the goods needed by the population. Furthermore, because the Oil industry is managed completely by the government through the state-owned company PDVSA (Petróleos de Venezuela S.A.), the supply of dollars is provided mostly by the state.
Many sectors of production has been affected tremendously because of the strict regulations implemented by the government to import and export, in addition to the bureaucracy required to obtain dollars in order to fulfil international trading.
One of the most affected and damaged markets is the automotive market because it has lost production capacity as a result of difficulties such as obtaining dollars to buy auto´s parts, shipping the parts to Venezuela and then assembling the vehicles within the country. In addition to these problems, a law called “Luxury Law” approved in 2010, closed the Venezuelan market to imported cars, presenting the excuse that trading cars with other countries would destroy the internal production; consequently, Ford Motors Company, General Motors of Venezuela, Toyota de Venezuela, Mazda de Venezuela, Hyundai Motors Corp, Mitsubishi Venezuela, Chrysler Venezuela, Venirauto Industry, Chery Venezuela, Renault de Venezuela,...
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...3 Bs. /$ valid at that time). Today, a new Toyota 4Runner is Bs.1, 550,000.00 ($246,031.75 at the current fixed rate of 6.3 Bs. /$). As if it were not enough, official dealers sell their small quota of new cars to used-car-dealer owners who sell new cars as if they were used in order to escape the regulation. These corrupt dealers with the cooperation of official dealers and members of the government set outrageous prices to vehicles. The corrupt model of trading affects the consumer tremendously who won´t pay $246,031.75 for a 2013 Toyota 4Runner anymore, because that car is sold out at official dealers; therefore, the consumer has to migrate to the second-hand car´s market at which a 2013 Toyota 4Runner price is Bs. 5,100,000.00 ($809,523.81). Internationally, $809,523.81 is enough to buy two Ferraris and even to keep the change to put gas for a couple of years.
The people in Venezuela are starving and dying because they don't have food. Venezuela is struggling with shortages of food,and medicine. Venezuela’s economy mostly depends on their oil.Oil prices have dropped and that has affected Venezuela. The food crisis is bad because in grocery stores there is no food so there is specific days people have to line up. In the text from the website it states “Venezuelans are bearing the brunt of the economy's problems. The government can't pay to import basic food items like milk, flour and eggs, leaving many supermarkets with empty shelves.” This quote shows that Venezuela is struggling with food and with money and the government doesn't do much to help their
Office of Industries, U.S. International Trade Commission.(2009).Export controls: an overview of their use, economic effects, and treatment in the global trading system. Retrieved from United States International Trade Commission http://www.usitc.gov/publications/332/working_papers/ID-23.pdf
It has moved from an exclusive power of the national government to regulate the trade of good and services on an international level to include interstate activities. The nation is growing and new problems are continuing to emerge. The commerce clause has to adjust also, in order to meet the demands of the changing world and its’ needs. The federal government still has the power to regulate interstate commerce. It still remains the reason for the increased federal regulation on the economy. The national economy is growing. It is no surprise to see that areas such as agriculture, finance industry and other services have increased and been included in laws governing these areas
Cuba has traditionally had many trade restrictions and trade barriers. There is some restructuring in state sector since 2010, but there are heavy regulations and tight state controls in the private sector. There are no open-market policies to improve growth in trade and investment, and the lack of competition continues to throttle dynamic economic expansion. Only government enterprises can enter into economic agreements with foreigners as minority partners; ordinary citizens cannot participate. Most of the means of production are owned by the government. Its planned economy discourages foreign trade and investment. The financial sector remains heavily controlled, and access to credit for entrepreneurial activity is seriously obstructed by the shallowness of the financial market. The government maintains strict exchange and capital controls.
Since the 1970s, Venezuela has gone from being South America’s richest nation into a nouveau-poor society in search of an identity. Once known as the Saudis of the West, Venezuelans have seen their economic fortunes decline in exact proportion to the general fall in world oil prices. Even so, Venezuela’s many problems were hidden from view until relatively recently, when severity measures heralded the sort of economic crises so painfully familiar to other Latin American countries. Runaway inflation, currency devaluations and even food riots have marked this new phase in Venezuelan history, to which the country is still trying to adjust.
Venezuela was one of the richest 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.
Economic instability is perhaps the category that engulfs most states with petroleum-depending economies, including economic giants like Russia. The downfall of these producers is particularly evident given the current and increasing downfall of oil world prices of more than 50% in the last six months. The increase in domestic supply of oil in North America that rendered the United States less dependable on petroleum imports undermined the influence of exporting countries, particularly the leverage that the once powerful tycoons of the OPEC possessed over international trade. These countries can no longer engage in an embargo like in the 1973, for they are even struggling with enormous deficits to meet their citizens’ basic
Food shortages, high inflation rates, protest, and violence: one sees these headlines in a Google search of Venezuela today. All around the country, there are long lines to buy simple necessities, like bread and milk. High inflation rates lead to shortages of food supplies, which increase frustration leading to protests in the streets and, sadly, an increase of violence. The protests and violence result from the inability of Venezuelans to provide the most basic human needs for their families. Sky-rocketing inflation rates in Venezuela are the result of Hugo Chavez, the former socialist and revolutionary leader of the country, and his administration. While in power, Chavez was so consumed with fixing the social issues in Venezuela, that other aspects of the country were ignored – like the economy. In 2014, Venezuela is left with a destroyed economy, angry people, and a government that is trying to fix the many issues the country currently faces; although the government is committed to finding solutions, the people of Venezuela do not feel the government is fixing the problems fast enough.
Throughout the fourteen years that remained in power Chávez followed strategy of introducing a socialist government in Venezuela in stages. According to Enrique Standish in the article titled “Venezuela Finally Turns Communist” it happened in four stages. The first stage consisted of obtaining t...
The automotive industry is one of the most important sectors of the economy for every country in the world. It involves a large number of corporations and institutions engaged in the manufacturing process of motor vehicles including designing, developing, manufacturing, marketing, and selling. It contributes to the global economic growth by generating a significant return and creating a ripple effect on supporting the supply chain as well as providing job opportunities for the skilled workers (ACEA, 2016).
Toyota’s uses both differentiation and low cost as generic strategies to try and gain a competitive advantage over their competitors in the automotive industry. The market scope that Toyota uses is a broad one that encompasses nearly every type of customer that is in the market to purchase an automobile. Toyota is able to target such a large market because they have something for everyone. Toyota has four wheel drive trucks and SUVs for the outdoor types or those who live in areas that face severe weather conditions, hybrid models like the Prius for the eco-friendly customers that are interested in saving the environment, along with the standard cars for general, everyday use. Additionally, Toyota provides vehicles for all price ranges.
When you hear the term “used car”, what is the first thing that comes to mind? Some may think of an old rusty Cadillac that belongs in a junkyard. Others may think of that nice Camaro at the used car dealership for sale. Over the years, used car sales have skyrocketed. In 2012, over 40.5 million used cars were purchased in the United States (Atiyeh, 2013). Used cars are in high demand in today’s economy because of the lower prices, slightly higher gas mileage, and that they can be more trustworthy against some of the newer models. With used car sales always climbing, how do buyers know what they are looking for in a vehicle? How do they come down to the final decision of where to purchase the vehicle? Most importantly, how can buyers make sure that they do not get scammed? This paper will take you through the process of purchasing a used vehicle, from deciding on a budget, all the way to the final purchase of your “new” car.
Toyota Motor Corporation is one of the largest automakers in the world. At its annual conference in Tokyo on May 8, 2008, the company announced that activities through March 2008 generated a sales figure of $252.7 billion, a new record for the company. However, the company is lowering expectations for the coming year due to a stronger yen, a slowing American economy, and the rising cost of raw materials (Rowley, 2008). If Toyota is to continue increasing its revenue, it must examine its business practice and determine on a course of action to maximize its profit.
The drastically increasing prices of fossil fuels and gasoline were making it harder for a middle income people to afford conventional vehicles in the near future. The gasoline is a natural resource which is reducing the supply of our reserves every second. In order to keep the fuel prices in control...
...se, some consumers opted to import cheaper vehicles. Others who felt the cost of maintaining an automobile was too high resorted to public transport. This in turn reduced sales further worsening the crisis.