COUNTRY PROFILE

Formal Name: Republic
of Venezuela.

Short Form: Venezuela.

Term for
Citizens:Venezuelan(s).
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Capital: Caracas.
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THE COUNTRY AT A GLANCE
Geography
Located in the northern part of
South America, Venezuelan
continental territory limits are
the Caribbean Sea to the
North; the Atlantic Ocean and
the Republic of Guyana to the
East; the Republic of Brazil to
the South and the Republic of
Colombia to the West. Its total
area of 917.450 square km
(354.227,44 square miles) is
approximately 2.5 times the
State of California.

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THE COUNTRY AT A GLANCE

Population: 25,017,387
(July 2004)
Approximately 80% of the
population is concentrated
in the coastal region, with
about 4 million in Caracas,
the capital. The second
most important city is
Maracaibo, which is a
major oil center, followed
by Valencia, Maracay, and
Barquisimeto (the major
manufacturing and
industrial cities of the
country).
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THE COUNTRY AT A GLANCE

Climate:
Venezuela is in the -4 Zone (GMT). The
country has a variety of climates ranging
from tropical to temperate. The only
seasons are winter and summer. The
rainy season runs normally from May to
mid-November. The average
temperature in Caracas is 72º F (22º C)
and in Maracaibo 68º F - 91º F (20ºC 40º C) year round
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THE COUNTRY AT A GLANCE

Ethnic Make-up: Spanish, Italian, Portuguese, Arab,
German, African, indigenous people.

Religions: nominally Roman Catholic 96%,
Protestant 2%, other 2%

Languages in Venezuela:
About 40 languages are spoken in Venezuela.
However, Spanish, the country's official language, is
the most common. Italian, Portuguese, Chinese,
Arabic and English are the most common foreign
languages spoken in Venezuela..
Venezuelans often speak less formally than people
in most other Spanish-speaking countries.
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THE COUNTRY AT A GLANCE
Currency
The "Bolivar" is the legal tender with notes
denominations of Bs. 5,000, 2,000,
1,000, 500, 100, 50, 20, 10 and 5. Coins
include Bs. 5, 2, 1, and 50, 25 and 5
centimes.

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THE COUNTRY AT A GLANCE

Business Hours
Normal business hours are from 8 a.m. to 12 noon and
from 2 p.m. to 6 p.m. Stores are usually open from 9 a.m.
to 1 p.m. and from 3 p.m. to 7 p.m. Banks are open to
public from 8:30 a.m. to 3:30 p.m.

Holidays
The following holidays are observed: January 1st (New
Year), Carnival (2 days in February), Thursday and Good
Friday, April 19 (Declaration of Independence), May 1st
(Labor day), June 24 (Battle of Carabobo), July 5
(Independence Day), July 24 (Bolivar's Birthday), October
12 (Discovery of America), December 17 (Death of
Bolivar), December 25 (Christmas).
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Politics of Venezuela
Venezuela is a federal multiparty
republic, with a president who is
both chief of state and head of
government. The cabinet, or
Council of Ministers, has twenty-six
members. There is a bicameral
congress, composed of the
Chamber of Deputies and the
Senate, and the judiciary is
represented by the Supreme Court.
Elections are held every five years.

Current President Hugo Chávez
was elected in December 1998.
Chavez was reelected in December
2006.
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THE VENEZUELAN ECONOMY

The Venezuelan economy is based on free
enterprise, with a combination of public and private
ownership. The oil industry has been the main
source of fiscal revenues and foreign exchange
earnings, and has been the engine for economic
growth and social change for the past decades.

In 2000, the petroleum industry accounted for
approximately 28% of GDP, 82% of the total value of
exports and approximately 69% of the Venezuelan
government's current revenues. The major
components of non-petroleum GDP in 2000 included
commerce, financial institutions, insurance, and
manufacturing.
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INTERNATIONAL LEGAL RELATIONSHIP
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Trade Agreements

Marrakesh Agreement that Establishes the World Trade Organization (WTO).

Latin-American Integration Association (LAIA).

The Free Trade Agreement between Colombia; Mexico and Venezuela, The
Group of Three (G-3).

Andean Community.

Central American Common Market (CACM).

Venezuela and the Caribbean.

Venezuela and Chile.

Venezuela and MERCOSUR.
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INVESTING IN VENEZUELA

Foreign Investment are regulated by Decree 2.095 of
February 13th, 1992. Such Decree submits foreign
investments to the Decisions 291 and 292 of the
Commission of the Cartagena Agreement. Following
these regulations, all foreign investments are
deemed approved and they are only subject to
registration with the appropriate agency, provided
that they do not contravene any provision of general
applicability under Venezuelan legislation.

The allowed proportion of foreign investment
depends upon the sector in which the company is
planning its activities, as there are some limited
sectors reserved to national enterprises
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POSSIBLE BUSINESS
STRUCTURES
In order to do business in Venezuela,
companies may take four different types
of structure under the Venezuelan legal
framework (Code of Commerce).
 They are general, special, limited
partnerships, and business corporations.
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POSSIBLE BUSINESS
STRUCTURES

General partnerships are characterized by the way in
which obligations of the firm are guaranteed by the
unlimited and joint liability of all the partners.

In special partnerships, obligations are guaranteed
unlimited and joint liability for some partners (general
partners), and by limited liabilities for other partners
(special partners). In both these partnerships,
liabilities include all partners' assets.

Business corporations' obligations are guaranteed by
a specified amount of capital and the stockholders
are liable only for their shares.
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POSSIBLE BUSINESS
STRUCTURES

There are other business' structures that are not
defined in the Code of Commerce but that are widely
accepted in practice. These include joint ventures,
consortia, foundations, and associations.

Once the structure of the business is decided,
foreign participation is defined by the amount
invested and the degree of participation (technical
and administrative) that the investors hold on the
enterprise. A national company is defined by having
at least 80% of local ownership, a mixed company
has between 79 and 50% of local ownership, and a
foreign company has less than 49% of local
ownership.
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Es importante destacar, que las empresas
mexicanas son líderes en el mercado en los
sectores de alimentos y bebidas, materiales
para construcción, productos metalmecánicos,
autopartes y manufacturas diversas.
Además de estas inversiones, existe un buen
número de empresas mexicanas con oficinas
de ventas y distribución en el mercado, las
cuales comercializan una gran variedad de
productos como válvulas, equipos petroleros,
software, sanitarios, equipos médicos, jugos
de frutas, entre otros.
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Razones para seleccionar el
mercado venezolano
1. La creciente desindustrialización en el mercado venezolano.
2. La histórica dependencia por los productos importados.
3. Las preferencias arancelarias que otorga el TLC G-3.
4. La creciente preferencia del mercado venezolano por la
calidad de los productos mexicanos.
5. La diversificación de la oferta exportable mexicana.
6. Los nuevos espacios comerciales que se abren ante la
nueva realidad venezolana.
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Consejos sobre la cultura de
negocios en Venezuela
1. La forma extrovertida del empresario venezolano, facilita iniciar la relación
comercial.
2. El empresario venezolano evita a toda costa la formalidad en el trato.
3. La puntualidad no juega un papel importante en el inicio de la relación comercial.
4. Las expectativas de negocios deben definirse claramente desde el principio, el
empresario venezolano aspira grandes expectativas sin elementos.
5. Los acuerdos comerciales se formalizan a través de un contrato legalmente
constituido.
6. Existen elementos de menor importancia que durante la negociación comercial el
empresario venezolano formaliza de palabra.
7. El empresario venezolano hace negocios en un marco de amistad y confianza.
8. El empresario venezolano no está acostumbrado a trabajar bajo estrictas reglas.
9. El empresario venezolano valora el esfuerzo para generar la relación comercial.
10. El empresario venezolano esta acostumbrado a no modificar sus periodos
vacacionales.
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Guidelines for business dress

Men should dress conservatively, in dark business suits made
of lighter wools.

In business and in any of the more privileged circles,
Venezuelan women tend to be meticulous dressers who closely
follow European fashion. Female visitors are advised to bring
conservative, stylish business clothes of the highest quality,
including one cocktail dress.

In Venezuelan business culture, it is considered important for a
woman to maintain an elegant, beautifully dressed appearance,
which includes becoming jewellery, heels, and make-up.

Venezuelan businesspeople tend to be very status-conscious
and will often be impressed by these displays.
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Advices for doing business in
Venezuela
Behavior
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Business people are punctual and small talk is minimal
It is good practice to follow up morning appointments with an invitation
to lunch
Have business cards printed in English on one side and Spanish on
the other. Be sure your position is clearly indicated and present your
card immediately following an introduction
Unlike lunch, dinner is for socializing, not for business
Businesswomen should be aware that going out alone with
Venezuelan businessmen may be misconstrued
The two senior executives should sit facing each other
Guests rarely sit at the head of the table
To indicate you have finished eating, place your utensils in parallel and
diagonally across your plate
An appropriate gift for a man is something for the office - such as a
good quality pen. A women would appreciate the gift of an orchid – the
national flower
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Advices for doing business in
Venezuela
Communications
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Handshaking by both sexes common and customary; shake
hands on greeting and departing. The handshake is firm.
Good friends hug and women kiss cheeks
Avoid dominating the conversation. Venezuelans like to be in
control
Titles are important and should be included on business cards.
Most Hispanics have two surnames: one from their father,
which is listed first, followed by one from their mother. Only the
father’s surname is used when addressing someone
Good conversation topics: business, art, literature, history
Bad conversation topics: local unrest, inflation, politics.
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BUSINESS GIFT GIVING

Before presenting a business gift, wait until you have
established a cordial relationship with the recipient. For
example, gifts should be considered necessary after you
have been invited to dinner or when someone has done
something thoughtful for you. Female business travelers,
however, should not give gifts to businessmen.

The most opportune time to present a business gift is
during a long lunch. Refrain from giving a gift during
business hours.

When invited to a Venezuelan home, always arrive with at
least a token gift.
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Appreciated Gifts
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Fine chocolates
A quality, imported liquor such as scotch
A high-quality desk accessory with your company
name
A high-quality lighter with your company name
A name brand pen
A name brand desk set
Small electronics
A book featured on the 'New York Times' bestseller
list [if the recipient reads English]
For a woman, a good perfume is a welcome gift.
An arrangement of orchids, the national flower, is a
popular and easily available floral gift.
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Interview:
How to do Business in Venezuela
Pendiente!!
 No han respondido.
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Bibliography
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http://www.lexmundi.com/images/lexmundi/PDF/guide-venezuela.PDF
http://www.doingbusiness.org/ExploreEconomies/?economyid=201
http://www.internationalist.com/business/Venezuela.php
http://www.kwintessential.co.uk/resources/global-etiquette/venezuela-country-profile.html
http://www.executiveplanet.com/index.php?title=Venezuela:_Business_Dress
http://www.cyborlink.com/besite/venezuela.htm
http://devdata.worldbank.org/external/CPProfile.asp?SelectedCountry=VEN&CCODE=VEN&CNAME
=Venezuela%2C+RB&PTYPE=CP
http://go.worldbank.org/KX5UF4WZD0
http://en.wikipedia.org/wiki/Politics_of_Venezuela
http://www.executiveplanet.com/index.php?title=Venezuela:_Gift_Giving
http://www.prensaescrita.com/america/venezuela.php
http://www.bancomext.com/Bancomext/publicasecciones/secciones/6331/FichaVenezuela.pdf
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BIBLIOTECA DIGITAL
http://0proquest.umi.com.millenium.itesm.mx/pqdlink?index=19&did=110662018&SrchMode=1&sid=1&Fmt=
3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1191884050&clientId=23693&cfc=1
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http://0proquest.umi.com.millenium.itesm.mx/pqdlink?index=5&did=419968241&SrchMode=1&sid=1&Fmt=3
&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1191884050&clientId=23693
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Doing Business in Venezuela