1. Use the following information to discuss some of the most likely issues to face the...

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1. Use the following information to discuss some of the most likely issues to face the Venezuelan economy in light of in-class content. (a) Since 2002, Venezuela has embarked on a process of expropriating and nation- alizing commercial enterprises in the country. According to the Venezuelan Confederation of Industries, between 2002 and 2012 a total of 1168 foreign and domestic companies were nationalized. (b) "Expropriating important sectors of the Venezuelan economy and running them to the ground - has become a staple of Mr. Chávez's economic policies over the past 12 years." (c) Recently, the World Bank's International Centre for Settlement of Investment Disputes (ICSID) awarded $1.6b to Exxon Mobil Corp for a 2007 expropria- tion of assets. There are at least 17 other claims before the ICSID. (d) Discussing Venezuela's upcoming bond payment obligations, "While Venezuela has been willing to compensate claimants in the past, the government is clearly working with limited liquidity and already faces tough policy trade- offs between servicing its liabilities and importing basic goods to satisfy its base." 1. Use the following information to discuss some of the most likely issues to face the Venezuelan economy in light of in-class content. (a) Since 2002, Venezuela has embarked on a process of expropriating and nation- alizing commercial enterprises in the country. According to the Venezuelan Confederation of Industries, between 2002 and 2012 a total of 1168 foreign and domestic companies were nationalized. (b) "Expropriating important sectors of the Venezuelan economy and running them to the ground - has become a staple of Mr. Chávez's economic policies over the past 12 years." (c) Recently, the World Bank's International Centre for Settlement of Investment Disputes (ICSID) awarded $1.6b to Exxon Mobil Corp for a 2007 expropria- tion of assets. There are at least 17 other claims before the ICSID. (d) Discussing Venezuela's upcoming bond payment obligations, "While Venezuela has been willing to compensate claimants in the past, the government is clearly working with limited liquidity and already faces tough policy trade- offs between servicing its liabilities and importing basic goods to satisfy its base."

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Based on the provided information there are several likely issues that the Venezuelan economy may face 1 Expropriation and Nationalization Venezuelas ... View the full answer