Mercosur's Existence

Despite higher oil prices at the end of 2002 and into 2003, domestic political instability culminated in a two-month national oil strike from December 2002 to February 2003 which more or less brought Venezuela's economy to a standstill. The national economy continued downwards into a depression in 2003. In late 2003, president Chavez agreed to $1 billion in spending on new social programs - money that can only be funded with deficits (2005).

According to the Venezuela Information Office website, as an associate atom of Mercosur, Venezuela provide be joining one of the largest free switch over areas of the world. It will benefit from the group's preferential trade treatment for part nations. The Mercosur which represents nations with a total combined population of over 371 trillion people has been an advocate for good governance and a level economic playing field among its members, including a call for

Whether existing production capacity withdraw to be expanded in response to an increase in demand

The costs of Mercosur membership to the economy include the following:

(2005). Retrieved Mar.

10, 2005, from Venezuela weather vane site: http://www.cia.gov/cia/publications/factbook/geos/ve.html.

For this manufacturer, membership will change the lawful framework for trade between Venezuela and other member countries. It will make it easier for the manufacturer to sue companies in other nations in the Mercosur for breach of contract or failure to pay the match owed.

As a result of this dramatic change, companies such as this auto parts manufacturer in Argentina urgency to focus on the following changes which include benefits and drawbacks of the trade pledge:

Mercosur. (2004). Retrieved Mar. 10, 2005, from External Relations Web site: http://europa.eu.int/comm/external_ transaction/mercosur/intro/.

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