banks - • Chavez a close ally of Cuban leader Fidel...

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Kim Tran Microeconomics Prof. Kahn 5/4/07 “Chavez threatens to nationalize banks” Venezuelan President Hugo Chavez threatened to nationalize the country's banks and largest steel producer, on Thursday, accusing them of unscrupulous practices. Chavez says that the banks have to give priority to financing the industrial sectors of Venezuela at low cost. If they don’t he thinks its best nationalize them and get all the banks to work for the development of the country and not to speculate and produce huge profits. Key Points: Sidor "has created a monopoly" and sold the bulk of its production overseas, forcing local producers to import pipes and other products from China and elsewhere, Chavez said. Chavez initiated a nationalization drive in January that is bringing the country's largest telephone company CANTV and the electricity sector under state control
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Unformatted text preview: • Chavez, a close ally of Cuban leader Fidel Castro, says the nationalization of "strategic" companies is part of Venezuela's transition to a sot system. • "I'm not deceiving anyone," Chavez said. "I'm only governing the country, and the country has elected me various times. . .. All of those who voted for me backed som, and that is where we are heading." Chavez is trying to make the switch from communism to som for Venezuela, and to do so he is eliminating monopolies of banks, telephone, and steel companies. I think this is a good move because the country the companies reside in should get preference over other companies. It is unfair for a bank to overcharge for usage to their own country, or any country for that matter....
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This note was uploaded on 04/28/2008 for the course BADM 240 taught by Professor O'connell during the Spring '08 term at Massachusetts College of Liberal Arts.

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