Unit 4 IP
International Business Benefits and Drawbacks
There are benefits and drawbacks in opening a business when Venezuela becomes part of
MERCOSUR. There can be free interchange of goods, service and a cause of establishment between
countries. But there must also be a better understanding of the economic viewpoint and also a
better understanding of MERCOSUR to establish what the benefits and drawbacks would be as a
business owner. There must also be a choice on what changes will need to be made to the
business if it’s decided to join the MERCOSUR.
Benefits for Venezuela joining the MERCOSUR would be the benefit of trade, basically this
would be free trade areas that will form other trades that did not exist before. Due to this, the
supply will come in and it can be a better source of product. When bringing in this trade it will help
make a better foundation for the country and will help lift its welfare. When you come right down to
it, what it does for the country is help the consumers in lowering the cost of import and export
goods. Another benefit for Venezuela would be for businesses and consumers in lowering
transaction costs. This could be a very good benefit because that will mean that more people will
buy products and the companies will be able to make more profit and this will also help to
make a better economy. Another benefit for Venezuela would be to reduce exchange rate instabil ...