Venezuelan State

Opportunities. Economically there is an excellent relationship of bargaining between the two Nations since according to official sources in recent Venezuelan exports to Brazil grew by 74% and Brazilian exports to Venezuela grew by 900%. On the other hand are established conventions that allow to establish tariff discounts up to 100% on the import of steel sheets, equipment of telephony, television and 80% in import of tractors. In the political-economic aspect there are agreements that have allowed to strengthen social, cultural, energy projects infrastructure of the steel sector, education among others. Both Nations established agreed through investment program to encourage domestic enterprises in the field of milk production and breeding of livestock, food production, training of small and medium enterprises among others.

From the technological point of view are established partnerships for energy development, to implement agreements to stimulate of their their companies PDVSA (Venezuela) and PETROBRAS (Brazil) through investments in the development of the pipeline, using a technology in order to become world leaders in energy cooperation. Addition technology investment is made in the construction of underwater platforms and oil tankers. Threats in regards to the export of oil in the Venezuelan case your maintains a strategy of maintain high oil prices, while Brazil focuses more from a point of view towards the long-term reinvesting in its economy. A threat is generated in regards to energy and oil export since both economies are exporting these items, the rivalry of price and markets in this matter can therefore be encouraged. Brazil has alliances such as BRICs, MERCOSUR among others, which are formed by countries that offer greater opportunities for the development of the economic activity of the nation. While Venezuela maintains alliances with countries that comprise the Alba, Can and others who do not present the same competitive advantages. Brazil has tariff protection by MERCOSUR, which encourages automotive investors.

While in case you Venezuelan companies are now closing its doors to be seen affected by policies that discourage investment. In Brazil, the companies that possess competitive advantages are protected and promoted by the State and these protectionist policies they generate a limitation to compete in certain areas produced by the Venezuelan companies. In addition to Venezuela, there are discrepancies between the Government and the business sector that somehow hinders the productive activity. Exports from Brazil have an exchange rate more competitive product of conventions groups belonging, whilst in the Venezuelan case as not part of these alliances it has disadvantages. Imposition by the Venezuelan State of exchange controls which makes difficult the acquisition of foreign currency necessary for the productive development of the country, which hampers the export of national products to that market. Strengths: Its geographical location allows to obtain a given fortress that Venezuela and Brazil are neighbouring countries which facilitates the exchange between the two Nations. The existence of bilateral agreements between the two Nations in regards to strengthening investment in the energy sector and oil, which represents a fortress in the presence of new markets. In conclusion, today there are excellent commercial and bilateral relations between Brazil and Venezuela that stimulate integration between these two Nations, from the point of view of economic, social and political given that significant investments in energy, oil, technology in order to have significant presence in South America and the rest of the world are currently underway. Bibliography magazine portfolio, strategies for emerging markets. Anniversary no. 12, October 2008 Edition. Encartado of the Nacional, El Economista. Opportunities in emerging markets. Get more background information with materials from Economic Cycles Research Institute. encyclopedia No. 8. Buenos Aires, 2008.

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