Question 1. Venezuela
Type of economic and political system put in place in Venezuela.
Under Chavez, the economy fell, and unemployment and the rate of poverty increased to higher levels. World bank declared Venezuela to be the most controlled economies in the world in 2003 due to the control of businesses by the state which provided the public officials with the chance to extort money from entrepreneurs (611). The consequence was that the communism economy failed and was controlled by a few individuals while most people suffered. The political system provided the president with an excess power to rule by decree, and this appeared to be like a dictatorial regime.
Impacts of unilateral changes to foreign oil companies’ contracts on future investment.
The unilateral changes to contracts held by foreign companies by Chavez will make the foreign investors fear to invest in Venezuela. This has the effect of reducing beneficial competition with the local companies hence the probability of low investment in the oil company in the future.
Effect of corruption on future growth rates
The high level of corruption will prevent the resources from being distributed equally, and the growth rate in the future will likely be uneven.
Oil prices effect on the economy and government finances.
The economy reduced by 4% in 2014 after the sharp decline in oil prices and inflation increased to about 65 percent. This decr…
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