A look at why the Venezuela economy is dependent on oil, why it did not do more to diversify, and the problems of relying on a primary product like oil. Readers Question: First, why are more than 90% of their exports based on oil? Under Hofstede’s “Uncertainty and Avoidance of Risk”, Venezuela is ranked as …
Shock therapy is the belief that the best way to fix a broken economy is to implement radical changes and introduce new market oriented policies, in one fell swoop whatever the short term cost. Shock therapy is associated with the economist Jeffrey Sachs who advocated free market reforms for Eastern European countries like Poland and …
The problem: Cyprus debt to GDP ratio increased to 127% (Forbes) in the third quarter of 2012 Cyprus GDP growth in 2012 is estimated to be between -2 and -4% (estimate) The Cyprus economy has been hard hit by the slump in Greece – a major trading partner of Greece Cyprus made significant loans to …