5. Read the Country Focus on Venezuela under the leadership of Hugo Chvez; then answer the following
Question:
5. Read the Country Focus on Venezuela under the leadership of Hugo Chávez; then answer the following questions:
a. Under Chávez’s leadership, what kind of economic system was put in place in Venezuela?
How would you characterize the political system?
b. How do you think that Chávez’s unilateral changes to contracts with foreign oil companies will affect future investment by foreigners in Venezuela?
c. How will the high level of public corruption in Venezuela affect future growth rates?
d. Currently, Venezuela is benefiting from a boom in oil prices. What do you think might happen if oil prices retreat from their current high level?
e. In your estimation, what is the long-run prognosis for the Venezuelan economy? Is this a country that is attractive to international businesses?
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