venezuela-globalism - overall unemployment rate 11.8%, an...

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May 20, 2007 Like many other developing nations, Venezuela experiences fluctuations in its economy as a result of economic slumps. However, its dependent on a single export such as petroleum makes it extremely dependent on the economic prosperity of other nations and their consumer trends in relation to purchasing oil. As a result of high oil prices, Venezuela benefits from an enormous flow of capital into the country, which seems to only be increasing as oil prices continue to rise. Among the many benefits of the money received, two economic barometers, which generally indicate how an economy is doing, continue to grow and decrease respectively. These two vital statistics are Venezuela’s GDP and its unemployment rate. According to Venezuela’s National Institute of Statistics, the country experienced a 3.7% drop in unemployment between the 2004-2005 fiscal years. This made the country’s
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Unformatted text preview: overall unemployment rate 11.8%, an all-time low for the country, which has the lowest unemployment rate in South America. In addition, Venezuela’s GDP grew by 17.9% in 2004 and 7.9% the first quarter of 2005. Although these levels are the same as they were in 2002, the country experienced a coup, and in turn had somewhat of an economic recession. If Venezuela didn’t have such large ties with the global economy, current high oil prices would have a significantly smaller impact on its overall economic well-being. However, as a result of strong government spending due to large amounts of capital intake coming from petroleum exports, the country continues its development and is coming even closer to becoming an industrialized nation....
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This note was uploaded on 04/03/2008 for the course ECON 151 taught by Professor Harris during the Fall '07 term at University of Delaware.

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