American Ambassador

Have also been fundamental advances in terms of trade liberalization since the early 90s, that they have continued to deepen in this decade and has allowed balance, in a way, the trade balance, with relative gains in the manufacturing sectors, such as textile trade and the agribusiness. Within this line, maintain an independent Central Reserve Bank has been fundamental. Another lifeboat from Peru, according to Professor Cardenas Tuesta, is the fact that much of the current growth is anchored in internal demand, which gives you a true respite in the short term. On the other hand, countries more dependent on the consumer international, such as Mexico or Venezuela, may suffer the financial crisis of the northern neighbor. Richard Obuchi, Professor at the Instituto de Estudios Superiores de Administration (IESA) in Caracas, said that the risk country of Venezuela, just as it happened in other emerging economies, rose considerably after the bankruptcy of Lehman Brothers. In the Venezuelan case in particular, the perception of risk increased, moreover, by events that affected diplomatic relations between the United States and Venezuela during this week (as the decision of Hugo Chavez to expel the American Ambassador).

However, the main risk for the economy Venezolana is located in the high dependence of the country on the international oil market conditions. In this sense, if events in the United States leading to a situation of economic recession, the risk of a weakening of oil prices, by a decline in energy demand, which would negatively impact the country’s economic performance. Definitely, as indicated by Universia Knowledge Wharton, although each country has its own idiosyncrasies, in general, all will see their exports seriously depleted, and will be the most exposed to them which most shaken by the crisis will be, as pointed out by Professor Cardenas Tuesta, who expected a slowdown in export sectors more tied to the U.S. market, such as textiles. Similarly, his colleague Kon points out that sectors focused on exporting, like steel, and other mineral inputs also reflected the decline in demand world. Source: Universia Knowledge Wharton original Autor and source of the article.