ECONOMICS
BARRIERS TO TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Venezuela produces only enough oil for its own needs in order to conserve it for the future.
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Venezuela produces only enough oil for its own needs because it is difficult to ship internationally.
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Venezuela focuses on importing the oil it uses in order to conserve its own supplies for the future.
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Venezuela focuses on producing oil and selling it to other countries to raise money for the government.
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Detailed explanation-1: -The economy of Venezuela is based primarily on petroleum, making the country the 25th largest producer of oil in the world and the 8th largest member of OPEC. Venezuela also manufactures and exports heavy industry products such as steel, aluminum, and cement.
Detailed explanation-2: -Since its founding on 1 January 1976 with the nationalization of the Venezuelan oil industry, PDVSA has dominated the oil industry of Venezuela, the world’s fifth largest oil exporter. Petróleos de Venezuela S.A.
Detailed explanation-3: -Venezuela has a largely command economy in which the central government directs the economy regarding the production and distribution of goods. Venezuela is a member of the Common Market of the South (Mercosur).
Detailed explanation-4: -This discovery captured the attention of the nation and the world. Soon dozens of foreign companies acquired vast tracts of territory in the hope of striking it rich, and by 1928 Venezuela became the world’s leading oil exporter.