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Economic Crisis of Venezuela | Assignment

   

Added on  2020-03-23

7 Pages1750 Words55 Views
Business finance
Economic Crisis of Venezuela | Assignment_1
TABLE OF CONTENTSIntroduction................................................................................................................................3Analysis of economic crisis of Venezuela.................................................................................3Four primary reasons that had led Venezuela into their present state of unrest....................3Impact of cryptocurrency on financial management decisions and goals of Venezuela.......4Conclusion..................................................................................................................................5References..................................................................................................................................7
Economic Crisis of Venezuela | Assignment_2
INTRODUCTIONThe present study is based on analysis of reason that had led Venezuela into their presentstate of unrest by considering overall economic conditions. Further; the impact ofcryptocurrency will be analysed on financial management decisions and goals of Venezuelaneconomy on the basis of unrest circumstances. ANALYSIS OF ECONOMIC CRISIS OF VENEZUELAFour primary reasons that had led Venezuela into their present state of unrestEconomic CrisesThe primary reason for the current condition of Venezuela is increasing economic crisis. It isbecause; Venezuela is now in its 3rd year of recession. As per the IMF (InternationalMonetary Fund), economy of Venezuela is likely to catch up 10 percent in this third year.The estimates of IMF regarding Venezuela economy will be in collapse up till 2019. Duringthe shrinkage of the economy, prices of commodities rise abruptly (Kingsbury, 2016). Thisyear, inflation can take off at 475%, in accordance with the IMF. The current of Venezuelaalso crashes down in value. By considering this aspect, two years ago 1 dollar equals to 100bolivars and now 1 dollar equals to 1,262 bolivars. Over years government has spent anexcessive amount on welfare programs but it had not worked well due to weak managementand decaying farms lined up crisis.Broken engine oil of VenezuelaThings went worse when the prices of oil began to fall during 2014. Venezuela containedlargest oil minerals all over the world, but the question was that oil was the only choice. Itproduced 95 percent of Venezuela's proceeds made from exports. There will be no money inhands of Venezuela if they stop selling oil. In 2014, prices of oil were more than $100 perbarrel. At present, they drift at $50 per barrel, after the price drops $26 formerly this year.The segment of BCG matrix Cash Cow in the economy of Venezuela was not effectivelymanaged that means opportunities were not driven properly during the good times. Since thestate ignored with the maintenance of their oiling facilities and further the productionplummet to lower than13-year (Walker and Cooper, 2017). The Venezuela run thecompanies of oil, and Petróleos de Venezuela, S.A. (PDSVA) did not make payment tocompanies who helped in extracting oil like the Schlumberger, further they considerably
Economic Crisis of Venezuela | Assignment_3

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