Question

This is an opinionated question that I need help with, so feel free to answer it based on your own opinion.

5. What has directed your attention to the problems of Venezuelan politics rather than other relevant issues in the U.S or in other countries or the world?

Answer 1

Venezuela has one of the largest crude oil reserves. It is the part of OPEC. The price of Brent Crude is decided in the global market based on demand and supply. A rise in Oil price is thus due to demand-supply mismatch. Wherein the supply is not able to match the demand. So, if the economy of Venezuela is in turmoil then there are supply shocks to the global oil market and there is a possibility that the prices will shoot up. The demand for Oil is very high for all the countries as the entire economy runs on Oil (Logistics, Manufacturing Plants, Transport, Electricity etc). Any increase in Oil prices above a certain breakpoint can actually slow down an economy, as the production and efficiency will go down. This reduces the International trade and in short slows down global growth.

It is for these above-mentioned reasons, the attention of many people has been directed towards the socialist Venezuela.