CEC - INTERNATIONAL BUSINESS

Sem III Batch 2021-2023

Presented by:
Vasava Akash (2162), Yadav Vrajeshwari (2163), Mistry Chandrabhanu
(2164), Khan Munaf (2165)
ANALYSIS
of
VENEZUELA
Facts about VENEZUELA
• Venezuela (officially the Bolivarian Republic of Venezuela)
• Located in South America bordering the Caribbean Sea and the
Atlantic Ocean.
• Neighbors: Brazil, Colombia, and Guyana.
• Society shaped by Spanish colonisation, which introduced Roman
Catholicism and the Spanish language.
• Capital of Venezuela: Caracas
• Currency: Bolivar Fuerte (VEF)
• Federal presidential republic; the chief of state and head of
government is the president.
• Command economy: the central government directs the economy
regarding the production and distribution of goods.
POLITICAL FACTORS AFFECTING
VENEZUELA:
Government System:
 The president is the head of the
country.

 Elected for a Six-year term.

 Executive power is exercised by

the President.

 Legislative power is vested in

the National Assembly.
Federal Presidential Republic
 President: Vice president
Nicolas Maduro (Since 19 April 2013) Delcy Rodriguez (Since 14 june 2018)
Political Stability: Very unstable.

Meet, Juan Guaido as

the intrim president of
Venezuela.
 • Since 2019, two individuals have been
simultaneously calming to be the
Venezuela’s legitimate president.
• Country has been caught in a
downward spiral for years with growing
discontent further fueled by
skyrocketing hyperinflation, power cuts
and shortages of food.
• Dec.20 22, Venezuela’s political
opposition to the ruling socialists voted
on Thursday by a wide margin to
remove the interim gov. led by Juan
Guaido but was rejected by Guaido’s
popular will.
• More than seven million Venezuelans have
left their homeland since 2015 amid
• Therefore, the country might not been
Some countries say Nicolas Maduro (L) is the legitimate president while other
the first choice for many multinational
countries like US and UN are backing Jaun Guaido companies for foreign direct investment
for a long time.
Foreign direct investment, net inflows (US$) – Venezuela:

Source: Statistica.com
Ranks:
• 7th the most corrupted country in the world according to the corruption perceptions index.
• 147TH in overall prosperity index ratings 2021.
Relation:
• Diplomatic relations with many Latin American countries, such as Argentina, Chile, Cuba and
Brazil.
• Between India and Venezuela (eshtablished on 1 st October 1959.) India maintains an embassy
in Caracas, while Venezuela maintains an embassy in New Delhi.
Memberships:
• WTO, GATT , the Organisation of the Petroleum Exporting Countries (OPEC), The Bolivarian
Alliance for the Peoples of Our America (ALBA), Venzuela is a charter member of the UN,
Organization of American States (OAS),Venzuela is a full member of MERCOSUR but has been
suspended since December 1, 2016.
Income Tax:
• Corporate Income tax from
companies = 34%,
• The sales tax rate is a tax
charged = 16%
• The non-residents are
subjected to 34% of flat tax
on any income from
Venezuelan source.
ECONOMICAL
FACTORS
• Venezuela ranks 5th in the world in oil proven
reserves.

• The economy of Venezuela is based primarily

on petroleum, making the country the 25th
largest producer of oil in the world.

• Economy based on petroleum and

manufacturing (steel, aluminium and cement).

• Exports include steel, aluminium, cement, rice,

corn, fish, tropical fruit, coffee, pork and beef.
 GDP OF THE VENEZUELA
• The Annual nominal GDP of

GDP by Sector
Venezuela in 2021 was 42.53
Billion dollars.
Agriculture: 4.7%
• It ranked 88th in the whole world.

• Revenue from petroleum accounts Industry: 40.4%

for more than 50% of their GDP.

Services: 54.9%
 INFLATION RATE
3.22% • 1973 IN
VENEZUELA
741% • 2017

3332 • 2020
%
1588 • 2021
%
• Unemployment rate: in 2021 is
6.41% Main Export partners:

• Interest Rates: in oct. 2022 it was

57.68% U.S. (42%) China(23%)
• Export: Petroleum, Chemicals,
Agricultural products.
Singapore
India(19%)
(4.5%)
• Drastic shortages of food which Maduro attempts to
solve by getting the nation to eat rabbits.

• Citizens reject this as rabbits are considered pets and not

food.

• Shortage of medicine, electricity and other necessities

are causing small riots.
 SOCIAL
FACTORS
 The median age of The old-age
the population dependency
was 30.3 years in ratio was 12.7%
2021

With 25.4% of The work force is

the total highly educated
population
between zero and
15 years of age in
Demographics
2021

Venezuela has 9
93.4% of citizens The gov. remains years of
aged 15+ can committed to compulsory
read and write giving every education.
citizen free
education
• Many children however do not attend school because of poverty, they work to help their families.

Religion

Other
4%
Agnostic/ Catholic
Atheist Protestant
8% Agnostic/Atheist
Protestant Other
17%

Catholic
71%

• with the rising instability in the country, the position of the women has weakened.

• Venezuela ranked 91st out of 156 countries, with a score of 0.699 in 2021, as per the Global Gender Gap
Report 2021.
 Venezuelans

Warm, welcoming and open

Machismo
people, warm, welcoming and
open people. therefore
A high standard of beauty and
personal grooming is expected of
women.

Common for women to spend

several hours a day getting ready,
and cosmetic surgery is a popular
and accepted practice, of darker skin
to be more economically and socially
disadvantaged.

Do not criticise Simón Bolívar Those of lighter complexion are Marianismo

Daily life:
• Insecurity has increased danger to personal safety.

• Quite unsafe for a group of women to walk down the street.

• For friends and family members to stay in close contact with one
another.
TECHNOLOGICAL
FACTORS
Technological Status:
• Aim to improve their technological status

• National Plan for Technology Literacy: The country plans to close the
gap between the elite and poor by offering free classes on how to use a
computer. They currently have a massive increase in internet usage as
citizens learn how to use technology.
• E- commerce: A significant number of Venezuelans don't have bank
accounts, and the country's Internet infrastructure is poor, which are
two big barriers for e-commerce growth.
• Some of the most popular e-stores in Venezuela include Mercado Libre,
Amazon, and OLX.
Research and development:

• Conducts research in anthropology,

ecology, microbiology, cell biology and
nuclear technology.

• Digital tv project with Argentina - free

digital tv service.

• Focus has been on examining the

application of stem cells for tissue
renewal.
 Infrastructure:
• Has a road network of around 100,000 km (Placing it
around 47th in the world)

• Has 11 international and 36 domestic airports.

• Has 13 ports and harbors, but 80 % of bulk cargo is

handled by 3 ports on the Caribbean Sea: Maracaibo,
La Guaira, and Puerto Cabello.

• The facilities at La Guaira were significantly damaged

by mudslides.
Legal factors
• Civil Law is followed.

• The executive power is vested with the President, the Vice President, and
the council of ministers.

• The President is both the head of state and government and is elected for a
six-year term.

• The Maduro government looks the other way during riots and store lootings,
hoping people will blow off steam and avoid confrontation.

• Police are poorly trained and funded, they take bribes and are involved in
crime. Many businesses hire in security firms for protection.

• Judicial system is highly corrupt and rules most of the time in favour of the
state, making it hard for businesses to settle commercial disputes.
• Business inspections are carried out irregularly by
government officials, the officials are favourable
towards businesses giving them “gifts”.

• Construction permits are hard to obtain, setting

up a business is a costly and long process.

• Customs is highly corrupt, they let exports and

imports come through the border without
inspection
ENVIRONMENTAL
FACTORS
Atmosphere:
• More than 21,000 species of plants,
353 mammal species, 323 reptile
species, 1,400 bird species, and 288
amphibians.

• Nuclear energy: currently there are

no active nuclear power facilities.
One of the most
biodiverse
country on Earth.
 Home to extensive rainforests ranging from
cloud forests to the rainforests of the Guiana
shield.

Picture of the Guiana shield

 CHALLENGES

Takes
World's top 15
advantage of
countries in
only less than
renewable fresh
10 % of what it
water resources.
could recycle
Nearly 8 out of 10
Venezuelans do not
have continuous Happens illegally
access to clean (third highest rate in
drinking water and South America)
basic sanitation.
Source: Worldbank .org
Oil and urban pollution of
Maracabio lake…
World Ranking by Topic:

Source: Worldbank.org
THANK YOU.