Globalization And Its Economic Effect In Venezuela

Globalization and its economic effect in Venezuela

As Venezuela has been seen in recent years, it is one of the poorest countries, not only in Latin America but also in the world, in that country in recent years it has been in a bad economy and in a mismanagement. The globalization therefore has affected this country and has brought economic consequences.

As globalization is known, it does not have a definite concept, but it can be understood as a process in which everything is already intercommunicated, people, companies and governments of different nations, thus leading to the third world countries to follow countrieswith more development so that they can expand either in the field of commerce, traditions, customs, etc.

Lately, Venezuela has been very affected with the issue of globalization, since, not having such a good reputation, it is not a country that turns to see in the market and therefore does not get good investments and is falling into debt.

For many globalization is a good thing, something that can benefit everyone, but for others it is completely something else, it is something that instead of being benefactor would be a delay and thus leading them to be isolated from investment and causing unemployment.

In this case, Venezuela with its economic political model is making it a bit isolated and backward from what other countries go, since having another policy system, many developed countries seek expansion to countries that are comfortable for their investment and inThey change them by having it different makes their system and their technologies are not at the same rate and cannot adapt, more separately adding that their currency is a problem, since it can only be used within the country and its main problem is at the timeto convert it.

This leads them to several investors or established companies do not want to continue cooperating and investing in the country and with this they take goods and services of the population;Not having those factors affect the quality of life of the inhabitants and with it the economy.

A clear example of this is that several recognized companies have stopped operating in this country or are wanting to stop operating, some are Kellogg’s and General Motors who have stopped operating because of the government, since they became part of them;(Larrazábal President of Fedecámaras) denounced that more than 1,500 companies when they passed to the government, began to be unproductive.

Since the Venezuelan government, when taking several companies, took the ruin, since they did not manage them and made an lack of control, seeing this some companies and investors began to withdraw from the country, since it was not very convenient for them to continue inA country with principles of socialism. Instead, globalization goes at a different rate to Venezuela, and if it wants to be a country that wantsBut at a slow step, mainly changing the administration, seeing what was done bad years before to be able to take a small step, to go out to look for investments, since when changing its policy may that investors and developed countries turn tosee them.

Venezuela has to take into account that the world is changing and that every time globalization is taking part and is influencing the economy too. Globalization can be benefactor in a certain aspect and for certain countries, but for others it is not so good, since to non -developed countries and with different types of political wave it leads them to be isolated and have no investment. Then Venezuela could start acting for getting an improvement in your government, and starting to get loans and a good candidate would be the IMF that has a low rate, but to give it they should have better economic stability. Perhaps the debt grows based on loans, but it will help them to risk countries and thus begin to have a chance in the market and globalization does not leave this country without economics and leading the inhabitants to haveto look for another place to survive.

Bibliography

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