Venezuela's Membership in Mercosur

Venezuela’s Membership in Mercosur

As a Venezuelan business owner of a Financial Services Company I have a interest in the fact that Venezuela has recently been accepted as an associate member of Mercosur. This paper is my preparations of a business plan which i will need to be able to implement as Venezuela becomes part of Mercosur.

Venezuela’s Membership in Mercosur
Mercosur is the Southern Common Market which was created by Brazil, Argentina, Uruguay, and Paraguay in 1991. Mercosur is promoted by member countries in order to pool resources in hopes of encountering other economic powers such as the FTAA and the NAFTA. Merrcosur has a population of over 200 million and a GDP of $850 bm; making it the third largest integrated market; with the European market and NAFTA leading the way. By combining resources under Mercosur; member countries have been provided more negotiation power when dealing with other counties and organization as well as a larger market (Mercosur Trade Center, n.d.).
Benefits and Drawbacks for the country of Venezuela as a result
of their membership in Mercosur
Strongmen who had control over the military power in Venezuela ruled until 1959; during which time less social development and economics took place. Petroleum is the only abundant resource in Venezuela; therefore the rulers of Venezuela concentrated mainly on the petroleum industry. This resulted in the underdevelopment of other industries causing Venezuela to become over dependent on their petroleum industry. The petroleum Industry has remained in the spot light even after 1959 when an elected government came into power. Mercosur finally accepted Venezuela as an Associated Member in July of 2004 (Guerrero, 2004).
Benefits for Venezuela as a result of membership in Mercosur
Mercosur currently controls $851bn of GDP and promotes free trade with its member countries while working on having a common external tariff. Mercosur has agreed on having...