1. Why must a country's currency be devalued? What is failing in the economy?

2. What benefit did the Venezuelan regime in power gain from the repeated devaluation of the bolivar?

3. By the time you read this you will know whether the

   analysts predicting the future of the bolivar were correct. How did they do?

4. The Venezuelan Bolivar was devalued further under the presidency ofNicolas Maduro who succeded Hugo Chavez on his death (spring 2013). What is the current exchange rate of the Venezuelan Bolivar to the rate(s) cited in the case?

5. Identify the effect ofthe Bolivar devaluation on the local operations offoreign companies.

6. How did the severe drop in the price ofoil affect the economy ofVenezuela (and that ofother oil exporting countries)?