This question come from Venezuela Under Hugo Chavez and Beyond Closing Case. In your estimation, what...

This question come from Venezuela Under Hugo Chavez and Beyond Closing Case.

In your estimation, what is the long-run prognosis for the Venezuelan economy? Is this a country that is attractive to international businesses?

Expert Solution

Answer) One of the most important things when businesses or investors consider to invest in a country is its stability,which is measured bu its political stability, by its economic stability, by its growth prospects,consider this ,as an investor or a businessperson what is your primary aim,it is to earn profit,will you be able to achieve that if your business may get shutdown owing to protests or if skillful people fear to come to the country you are doing business in or if there is poverty and hyperinflation where no one can pay for your business or services,the answer is no,you cannot achieve that and Venezuela is going through all of above mentioned things,so based on above explanation no international business would find Venezuela attractive enough to invest despite some of the natural gifts that Venezuela possess.The point is without stability and growth prospects,international businesses will find it extremely difficult to invest and take a chance.

Answer is complete. Thank you!

Rahul Sunny answered 2 years ago

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