Venezuela is a perfect country that has attractive benefits to attract good investment. This is because the country has a good supply of natural resources, favourable geographical location, labour, and trade agreements that foster investment. The country is suitable for investment because it offers the most profitable opportunities for the employers and national economy. The manufacturing industry has the highest weight of the Gross Domestic Product (GDP), and the ability to create jobs opportunities and a strong purchasing power. Considering the case of goods production, opening a manufacturing company in this region would be the best deal for investment. Past researches reveal that, the extraction of oil and gas account for a large percentage of the country’s gross domestic product (Winter & Baguley, 2012). The country is also very rich in minerals such as gold, coal, bauxite, iron, and diamond. Venezuela has a large interest in the minerals and oil sector because the two industries enhance a strategic importance to the nation. The country has a strong legal system that attracts Foreign Direct Investment. Therefore, this country is suitable for investment since it keeps a strong and favourable tendency of trading. For instance, the government observes the Article 301 of its constitution, which prohibits discrimination between foreign and local investors. Investing in this country will not only be an opportunity to make huge profit, but also a humanitarian effort to improve the standard of those living in Venezuela. The country is located in the northern parts of South America. The country has diverse climates ranging from temperate to tropical. However, the average temperature of the country is warm. As per 2012 statistics, the total population of the country recorded was 29.7 million (Maddicks, 2012). The findings indicated a tremendous increase from 1960 to 2012 when the population approximated 7 million in the former. For the past years, no national census has categorized the country to ethnicity, since the national composition roughly estimates to different races. The country has different racial combinations of Indian, black, and white. Typically, the country has a strong political, social, and cultural environment that makes it suitable to open a manufacturing facility. The official language spoken is Spanish, although English is widely spoken in the business and tourism industry. The country has a strong culture, which is a mixture of African, European, and Local native roots greatly influence from Spain. Venezuelans are friendly, easy-going, and loving. Thus, there is no discrimination or cultural influence in the way businesses are conducted (Maddicks, 2012). The country’s economy development is largely based on the manufacturing and petroleum sector. For the past decades, revenues from the mentioned sectors accounts for more than 50% GDP (Brushaber & Greenberg, 2010). The country has a superb reputation of oil production. For the past years, there has been a tremendous economic growth from 1950s to date, and this has attracted many immigrants. Compared to other countries, the economic position of Venezuela is middle income. Most people are living in the upper middle class income. The GDP per capital in Venezuela as recorded from 1960 to 2011 was $5671.91 billion, which is equivalent to 46% of the world’s average as shown in the following appendix. As per Trading Economics (2013) retrieved from http://www.tradingeconomics.com/venezuela/gdp-per-capita According to the report conducted by the United Nations of Human Development, the country improved its ranking from 62nd to 58th (Human Development Reports, 2012). The improvement in education sector increased literacy level and school enrolment and this improved the human development of the country. Still, the reduction of infant mortality rate and access to health care played a crucial role in improving the ranking. Overall, the high rate of ranking reveals an important story of how the country is developing gradually. The ranking trends reveal that the country is suitable for investment on a national and regional level (International Human Development Indicators, 2012). According to the Freedom House (2012), the country does not have an electoral democracy. Although the government encourages citizens to vote, the political field favours the chosen candidates by the government. The government plays a crucial role in the boosting the economy and has diligently work hard to deter corruption, remove excessive regulatory restrictions. The constitution has also provided freedom of the media and press. The 2004 regulation on social responsibility on television and radio gives the government the authority to control the media content. With this, the government ensures that any content in the media align with the laws and regulations set in the constitution. As previously mentioned, the constitution prohibits discrimination in the Foreign Direct Investment. When the government has the chance to regulate what is put in the media, it becomes an added advantage for any company intending to invest there. For instance, the freedom of media and press provides better opportunities for advertising and marketing the new company (Maddicks, 2012). The Venezuelan government play a major role in the decision making. The president is the head of the government, and is usually elected after every six years. The state comprises the Executive, Judiciary, Legislative, Electoral, and Citizens. The Executive consists of the president, vice-president, and a cabinet made of 26 ministers. The Legislature consists of the National Assembly comprising of 167 representatives. According to the constitution enacted in 1999, Venezuela is a country governed by laws with a participative and democratic government (Schuetz, 2012). As per the constitution, the president is elected by the majority and the process of bvoting occurs after every 6 years. The turnout for election is free and fair where every citizen is given the right to vote for his or her preferred candidate. The next election will be held in 2018 (Schuetz, 2012). Since 1945, the courts of the country have been under the federal system. In essence, the highest body of the judicial system is the 18 members of the Supreme Court, which is further divided into three chambers namely civil, penal, and politico administrative. In accordance with the legal system, Venezuela is a social and democratic state of justice and law where policies are set as per constitution principles. The constitution gives people and countries the right to engage in commercial and lucrative activities. The constitution emphasizes that the government should conduct its legal systems base on the principles set. The country’s legal system attracts foreign direct investment. As per the constitution, there should be no discrimination between foreign and local investors. The country provides better opportunities of foreign direct investment derived from the principle of equitable and fair treatment clause. The principle promotes foreign direct investment in the Venezuelan. Another significant incentive for investing in this country is that its government provides a legal stability contracts that guarantee effective trading, national taxation, and foreign direct investment system. Currently, the country is in the period of economic growth, and it would be profitable to invest there (Maddicks, 2012). Born in 1954 and died on 5 March 2013, Hugo Chaves left a vivid legacy in leadership as the president from 1999 until his death. Chaves greatly influenced the political history and development of the system of government. During his leadership, Chaves increased the government funding of education and health care and this contributed to massive improvement on human development. The president made significant improvement in poverty reduction and constructed free medical clinics for the poor. To-date, many remember him for enhancing a tremendous improvement in the manufacturing sector. He created job opportunities and as a result, this improved the standard living of people. The president emphasized on the importance of education, social justice, national sovereignty, and creation of peace and unity (Houser, 2012). The government exercise the economy through taxation. Every business must be found in the legal requirement of trading. The government also implement some business consideration. For instance, citizens and companies, publicly or privately owned are expected to execute their business activities as per the plans established in the law. Businesses should protect the environment and biological diversity. Finally, every business conducted by individuals or companies should safeguard the well being of people, environmental, and economical stability. When investing in this country, it is important to consider the laws that govern the country in terms of economic and political system (Coutsoukis, 2004). The main strength of political parties in Venezuela is that it has been the center of the country’s democracy. The political parties have enhanced massive social changes brought by oil and petroleum. The political parties manage the consolidation and survival of the democracy. Political parties play a crucial role in strengthening economic and political power. They dictate how the country functions both locally and internationally in the business world. The development of democratic and a stable system create better opportunities for foreign direct investment. Political freedom has created a favourable environment for business, which in turn, boost the country’s economical growth. Despite the political strength that the country has, there have been a number of conflicts between parties. To some extent, conflicts have emerged in regard to lands where some race such as Indians believes that they have the right to possess some parts of the country (Coutsoukis, 2004). Currently, there are no recent political changes in terms of decision-making process, policy making, government representatives, and voting process. However, there has been a slight change on political power for instance, when distributing economic resources. The government has worked to deter greed and corruption in politics, which was a major problem in the 1950s (Houser, 2012). Based on the above facts about the country, it is evident that the country is suitable for foreign investment. There are important reasons that would attract any country or multinational company. For instance, the country has a good supply of natural resources, labor, favourable trade agreements and geographical location, and infrastructure that allow better trading activities beyond the borders. In addition, the manufacturing industry posses the highest weight in the GDP and this has the ability to create jobs and boost the purchasing and marketing power. The extraction of gas and oil indicates how the country’s economy is growing tremendously. The country is also rich in minerals and has a strong fishing industry that is crucial in boosting the economy. The country’s legal system is open to foreign investment because there is no discrimination allowed between foreign and local investors. As a result, the country becomes the perfect destinations for foreign investors. The main challenge of investing in this country is that there strict and heavy policies governing foreign investments. Although the constitution provides rights to engage in any commercial activity, the company must abide and follow certain policies to classify as foreign agency. The current human rights affecting the country include police abuse and prison harsh conditions. Violent crime is major issue in the country and killings by security agents have been a major problem affecting the country. Still, the Venezuelan prisons are the most violent, weak security, poorly and insufficient trained guards, deteriorating infrastructure, and corruption makes gangs to control prisons (Houser, 2012). To sum up, it is important to consider Venezuela for foreign investment because of its strengths in politics and economic power. Investing in this country will be a good deal to boost its economic growth because for the past years, its government has implemented laws and regulations that govern and promote foreign investment. The country has not been in conflict with its neighbours or other countries. In relation with major global powers, the country has traded with different countries such as Iran. The two countries developed a successful partnership to boost cooperation in the military, energy, and finance sectors. The country has also exported oil and petroleum products to various countries such as China, United States, and Europe. With these facts in mind, this report would appeal that Venezuela is the best country suitable for investment. References Trading Economics. (2013). Venezuela Population. Retrieved from http://www.tradingeconomics.com/venezuela/population Human Development Reports. (2012). International Human Development Indicators. Retrieved from http://hdr.undp.org/en/statistics/ Coutsoukis, P. (2004). Venezuela Ethnic Groups. Retrieved from http://www.photius.com/countries/venezuela/society/venezuela_society_ethnic_groups.html International Human Development Indicators. (2012). Venezuela. Retrieved from http://hdrstats.undp.org/en/countries/profiles/VEN.html Freedom House. (2013). Venezuela. Retrieved from http://www.freedomhouse.org/report/freedom-world/2012/venezuela-0 Winter, J. K., & Baguley, K. (2012). Venezuela. New York: Marshall Cavendish. Schuetz, K. (2012). Venezuela. Minneapolis: Bellwether Media Houser, A. (2012). Venezuela. Edina, Minn: ABDO. Brushaber, S., & Greenberg, A. (2010). Venezuela alive. Edison, NJ: Hunter Publishing. Maddicks, R. (2012). Venezuela. London: Kuperard.
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