Export Oil and Emerging Markets

It creates a threat in regard to export oil to energy issues and given that both economies are exporting these items, so you can encourage price competition and markets in this field. Brazil has alliances such as BRICs, MERCOSUR, among others, which are made up of countries which offer greater opportunities for the development of economic activity in that nation. While Venezuela has alliances with countries that are members of the Alba, Can and others who do not have the same competitive advantages. Brazil has tariff protection by the MERCOSUR, which encourages investors to automakers. While the Venezuelan case these companies will now be closing its doors to be affected by policies that discourage investment.

In Brazil, companies have competitive advantages are protected and promoted by the State and these protectionist policies involve a restriction to compete in certain items produced by companies Venezuela. Moreover, in Venezuela there are discrepancies between the government and the business sector which somehow hinders production. Brazil’s exports have an exchange rate more competitive product conventions belonging to groups, while in the Venezuelan case is not one of these alliances has disadvantages. Imposition by the Venezuelan state of exchange controls which hampers the acquisition of foreign currency necessary for the productive development of the country, hindering the export of domestic products into that market. Strengths: Its location allows for a great strength as Venezuela and Brazil are neighboring countries which facilitates the exchange between both nations. The existence of bilateral agreements between both nations in regard to strengthening investment in energy and petroleum, which represents a fortress in the presence of new markets.

In conclusion, there are now excellent relations and bilateral trade between Brazil and Venezuela to encourage integration between the two nations, from the standpoint of economic, social and political as they are currently making significant investments in energy, oil, technology in order to have significant presence in South America and the rest the world. Bibliography Portfolio Review, Strategies for Emerging Markets. Anniversary edition No. 12, October 2008.

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