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Petrochemicals in Venezuela: A Strategic Reference, 2007 - Product Image

Petrochemicals in Venezuela: A Strategic Reference, 2007

  • ID: 602341
  • July 2007
  • Region: Venezuela
  • 205 pages
  • ICON Group International

How to Strategically Evaluate Venezuela

Perhaps the most efficient way of evaluating Venezuela is to consider key dimensions which themselves are composites of multiple factors. Composite portfolio approaches have long been used by strategic planners. The biggest challenge in this approach is to choose the appropriate factors that are the most relevant to international planning. The two measures of greatest relevance to petrochemicals are “latent demand” and “market accessibility”. The figure below summarizes the key dimensions and recommendations of such an approach. Using these two composites, one can prioritize all countries of the world. Countries of high latent demand and high relative accessibility (e.g. easier entry for one firm compared to other firms) are given highest priority. The figure below shows two different scenarios. Accessibility is defined as a firm’s ease of entering or supplying from or to a market (the “supply side”), and latent demand is an indicator of the potential in serving from or to the market (the “demand side”).
Framework for Prioritizing Countries

Demand/Market Potential Driven READ MORE >

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1 INTRODUCTION & METHODOLOGY 1
1.1 What Does This Report Cover? 1
1.2 How to Strategically Evaluate Venezuela 1
1.3 Latent Demand and Accessibility in Venezuela 3
2 PETROCHEMICALS IN VENEZUELA 5
2.1 Latent Demand and Accessibility: Background 5
2.2 Market Data 5
2.3 Market Competition 7
2.3.1 Transportation Costs 7
2.3.2 Trade Agreements 7
2.3.3 Ownership 8
2.4 Best Prospects for U.S. Exporters 8
2.5 Accessibility: Market Entry 9
2.5.1 Standards 9
2.5.2 Foreign Exchange Control 10
2.6 Local Sector 10
2.6.1 Investment Plan Projects 11
2.7 Key Contacts 12
3 FINANCIAL INDICATORS: INDUSTRIAL ORGANIC CHEMICALS MANUFACTURING 14
3.1 Overview 14
3.1.1 Financial Returns and Gaps in Venezuela 15
3.1.2 Labor Productivity Gaps in Venezuela 18
3.1.3 Limitations and Extensions 18
3.2 Financial Returns in Venezuela: Asset Structure Ratios 19
3.2.1 Overview 19
3.2.2 Assets - Definitions of Terms 19
3.2.3 Asset Structure: Outlook 21
3.2.4 Large Variances: Assets 22
3.2.5 Key Percentiles and Rankings 25
3.3 Financial Returns in Venezuela: Liability Structure Ratios 40
3.3.1 Overview 40
3.3.2 Liabilities and Equity - Definitions of Terms 40
3.3.3 Liability Structure: Outlook 42
3.3.4 Large Variances: Liabilities 43
3.3.5 Key Percentiles and Rankings 46
3.4 Financial Returns in Venezuela: Income Structure Ratios 59
3.4.1 Overview 59
3.4.2 Income Statements - Definitions of Terms 59
3.4.3 Income Structure: Outlook 61
3.4.4 Large Variances: Income 62
3.4.5 Key Percentiles and Rankings 65
3.5 Financial Returns in Venezuela: Profitability Ratios 78
3.5.1 Overview 78
3.5.2 Ratios - Definitions of Terms 78
3.5.3 Ratio Structure: Outlook 81
3.5.4 Large Variances: Ratios 82
3.5.5 Key Percentiles and Rankings 85
3.6 Productivity in Venezuela: Asset-Labor Ratios 100
3.6.1 Overview 100
3.6.2 Asset to Labor: Outlook 101
3.6.3 Asset to Labor: International Gaps 102
3.6.4 Key Percentiles and Rankings 105
3.7 Productivity in Venezuela: Liability-Labor Ratios 120
3.7.1 Overview 120
3.7.2 Liability to Labor: Outlook 121
3.7.3 Liability and Equity to Labor: International Gaps 122
3.7.4 Key Percentiles and Rankings 125
3.8 Productivity in Venezuela: Income-Labor Ratios 138
3.8.1 Overview 138
3.8.2 Income to Labor: Outlook 138
3.8.3 Income to Labor: Gaps 139
3.8.4 Key Percentiles and Rankings 142
4 MACRO-ACCESSIBILITY IN VENEZUELA 155
4.1 Executive Summary 155
4.2 Economic Fundamentals and Dynamics 155
4.2.1 Government Intervention Risks 155
4.2.2 Privatization 155
4.2.3 Infrastructure Development 156
4.3 Political Risks 157
4.3.1 Economic Relationship with the United States 157
4.3.2 The Political System 157
4.4 Marketing Strategies 157
4.4.1 Distribution Channel Options 157
4.4.2 Agents and Distributors 157
4.4.3 Franchising Activities 158
4.4.4 Direct Marketing Options 158
4.4.5 Joint Ventures and Licensing Options 158
4.4.6 Creating a Sales Office 159
4.4.7 Selling Strategies 159
4.4.8 Advertising and Trade Promotion 160
4.4.9 Pricing Issues 162
4.4.10 Public Sector Marketing 162
4.4.11 Government Procurement 163
4.4.12 Hiring Local Counsel 164
4.5 Import and Export Regulation Risks 164
4.5.1 Trade Barrier Risks 164
4.5.2 Valuations on Imports 164
4.5.3 Pre-Inspection Companies 166
4.5.4 Licenses Required for Imports 168
4.5.5 Controls on Exports 168
4.5.6 Documentation Required for Trade 168
4.5.7 Entering Temporary Imports 169
4.5.8 Labeling Issues 169
4.5.9 Restrictions on Imports 170
4.5.10 Local Standards 170
4.5.11 Free Trade Zone Options 171
4.5.12 Additional Trade Issues 171
4.5.13 Adherence to Free Trade Agreements 171
4.6 Investment Climate 172
4.6.1 Openness to Foreign Investment 172
4.6.2 Conversion and Transfer Policies 172
4.6.3 Dispute Settlement 172
4.6.4 Investment Incentives 173
4.6.5 Performance Requirements 173
4.6.6 Right to Private Ownership and Establishment 174
4.6.7 Real Property Rights 174
4.6.8 Intellectual Property Risks 174
4.7 Transparency of the Regulatory System 175
4.7.1 Tax Treatment of Foreign-Owned Firms 175
4.7.2 Capital Market Risks 175
4.7.3 Credit Markets 176
4.7.4 Corruption 176
4.7.5 Bilateral Investment Agreements 176
4.7.6 OPIC and Other Investment Insurance 177
4.7.7 Labor 177
4.7.8 Free Trade Zones and Free Ports 177
4.7.9 Foreign Direct Investment 178
4.8 Trade and Project Financing 178
4.8.1 The Banking System 178
4.8.2 General Availability of Financing 179
4.8.3 Financing Export Strategies 179
4.8.4 Financing Projects 179
4.9 Travel Risks 181
4.9.1 Local Business Practices 181
4.9.2 Travel Issues 181
4.9.3 Infrastructure for Conducting Business 181
4.9.4 Housing 182
4.9.5 Country Data 183
4.10 Key Contacts 184
4.10.1 Venezuelan Government Contacts 184
4.10.2 Major State Enterprises 186
4.10.3 Professional Associations and Chambers in Venezuela 187
4.10.4 Department Stores and Supermarkets 190
4.10.5 Market Research Firms 193
4.10.6 Major Banks 193
4.10.7 U.S. Embassy Contacts 194
4.10.8 U.S. Government Contacts in Washington, D.C. 194
5 DISCLAIMERS, WARRANTEES, AND USER AGREEMENT PROVISIONS 196
5.1 Disclaimers & Safe Harbor 196
5.2 Icon Group International, Inc. User Agreement Provisions 197

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