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Airport Equipment in Venezuela: A Strategic Entry Report, 2000

Published by: Icon Group International, Inc.

Published: Oct. 11, 2000 - 118 Pages


Table of Contents


1 Introduction & Methodology
1.1 What does this report cover?
1.2 Evaluating Venezuela
1.3 Latent Demand and Accessibility in Venezuela


2 Airport Equipment
2.1 Latent Demand and Accessibility: Background
2.2 Latent Demand: Aspects of Interest
2.2.1 Market Profile
2.2.2 Statistical Data
2.2.3 Best Sales Prospects
2.3 accessibility: the structure of competition
2.3.1 Local Production
2.3.2 Third Country Imports
2.3.3 U.S. Presence
2.3.4 End-User Analysis
2.4 Accessibility: Key Factors
2.4.1 Import Climate
2.4.2 Distribution Practices
2.4.3 Financing
2.5 Key Contacts
2.5.1 Authorities


3 The Economics Of Latent Demand In Venezuela
3.1 Executive Summary
3.2 Economic Issues in Venezuela
3.2.1 Government Intervention Risks
3.2.2 Fiscal Policy and Taxation
3.2.3 Exchange Rate Policy
3.2.4 Price Controls
3.2.5 Privatization
3.2.6 Balance of Payments Issues
3.2.7 Infrastructure


4 Export Accessibility In Venezuela
4.1 Executive Summary
4.2 Exporting to Venezuela
4.2.1 The Venezuelan Banking System
4.2.2 Financing Export Strategies
4.2.3 Financing Projects
4.2.4 Trade Barrier Risks
4.2.5 Valuations on Imports
4.2.6 Licenses Required for Imports
4.2.7 Controls on Exports
4.2.8 Import/Export Documentation
4.2.9 Entering Temporary Imports
4.2.10 Labeling Issues
4.2.11 Restrictions on Imports
4.2.12 Local Standards
4.2.13 Free Trade Zone Options
4.2.14 Adherence to Free Trade Agreements


5 Direct Investment Accessibility In Venezuela
5.1 Executive Summary: Infrastructure
5.2 Executive Summary: Natural Resources
5.3 Executive Summary: Industry
5.4 Direct Investment in Venezuela
5.4.1 Attitudes Toward Foreign Direct Investment
5.4.2 Decree 2095
5.4.3 Sectorial Limitations Under Decree 2095
5.4.4 Areas Covered by Special Laws
5.4.5 Hydrocarbons
5.4.6 Natural Gas
5.4.7 Iron Ore
5.4.8 Mining
5.4.9 Telecommunications
5.4.10 Banking and Finance
5.4.11 The Enabling Law
5.4.12 Privatization Plans
5.4.13 Currency Conversion and Transfer Risks
5.4.14 Expropriation Risks
5.4.15 Dispute Settlement Risks
5.4.16 Investment Incentives
5.4.17 Direct Investment Incentives and Requirements
5.4.18 Private Ownership Risks
5.4.19 Protecting Property
5.4.20 Intellectual Property Risks
5.4.21 Patents and Trademarks
5.4.22 Copyrights
5.4.23 Regulatory Corruption Risks
5.4.24 Tax Treatment of Foreign-Owned Firms
5.4.25 Capital Markets and Portfolio Investment
5.4.26 Political Violence Risks
5.4.27 Corruption Risks
5.4.28 Key Bilateral Investment Agreements
5.4.29 The Local Labor Market
5.4.30 Trade Zones & Free Ports


6 Marketing & Distribution In Venezuela
6.1 Executive Summary
6.2 Marketing and Distribution in Venezuela
6.2.1 Distribution and Sales Channels
6.2.2 Agents/Distributors
6.2.3 Franchising Activities
6.2.4 Direct Marketing Options
6.2.5 Joint Venture and Licensing Options
6.2.6 Creating a Sales Office
6.2.7 Selling Strategies
6.2.8 Advertising and Trade Promotion
6.2.9 Pricing Issues
6.2.10 Supplying Customer Service
6.2.11 Public Sector Marketing
6.2.12 Government Procurement
6.2.13 Registration Exemptions
6.2.14 Bidding
6.2.15 Hiring Local Counsel


7 Human Resource Assessment In Venezuela
7.1 Executive Summary
7.2 Human Resources in Venezuela
7.2.1 Unionization in Venezuela
7.2.2 Collective Bargaining in Venezuela
7.2.3 Workweek and Minimum Wages in Venezuela
7.2.4 Forced Labor in Venezuela
7.2.5 Working Ages and Child Labor in Venezuela


8 Political Risk Assessment In Venezuela
8.1 Executive Summary: Government
8.2 Executive Summary: Military Organization
8.3 Democracy in Venezuela
8.4 Political Issues in Venezuela
8.4.1 Politics and the Business Environment
8.4.2 Political System


9 Legal Risk Assessment In Venezuela
9.1 Executive Summary
9.2 Legal Issues in Venezuela
9.2.1 Privacy, Search and Seizure
9.2.2 Trial Justice in Venezuela
9.2.3 Excessive Punishment in Venezuela


10 Cultural And Demographic Risks In Venezuela
10.1 Executive Summary
10.2 Cultural Issues in Venezuela
10.2.1 Racial, Ethnic and Discrimination Issues in Venezuela
10.2.2 Women's Rights and Gender Issues in Venezuela
10.2.3 Religion in Venezuela
10.2.4 Fundamental Human Rights in Venezuela


11 Historical Background
11.1 Business Customs in Venezuela
11.1.1 Transportation
11.1.2 Language
11.1.3 Communications
11.1.4 Newspapers
11.1.5 Housing

Abstract

This report puts executives and strategic planners on the fast track. The first chapter describes the study's methodology. The second chapter gives an overview of how to strategically access the market, mid-term forecasts of latent demand and accessibility benchmarks. The remaining nine chapters are not industry specific, but instead discuss economic fundamentals, marketing & distribution options, export and direct investment options, and full risk assessments (political, cultural, legal, human resources). Combined, the information provided in this market study is a "one-stop" shop for the strategic planner. Ample statistical benchmarks and comparative graphs are given.

Excerpt: The primary audience for this report is managers involved with the highest levels of the strategic planning process, and consultants who help their clients with this task. The user will not only benefit from the hundreds of hours that went into the methodology and its application, but also from its alternative perspective on strategic planning in Venezuela. This report helps executives evaluate strategic investment and entry alternatives in Venezuela. In order to evaluate Venezuela, Icon Group International, Inc. draws on a methodology developed by Professor Philip Parker at INSEAD in Fontainebleau, France. The methodology decomposes a country's strategic potential along two key dimensions: (1) latent demand, and (2) accessibility. A country may have very high latent demand, yet have low accessibility, making it a less attractive market than many smaller potential countries having higher levels of accessibility. This report provides a strategic profile of Venezuela along these lines. Throughout the discussion, literally hundreds of statistics on Venezuela are benchmarked against regional and global averages. The reader can thus quickly understand where Venezuela fits into the regional and global perspective. The report first investigates the economic fundamentals affecting Venezuela. These fundamentals are the source for Venezuela's latent demand. Then, the subsequent chapters detail Venezuela's accessibility. This evaluation covers a number of entry alternatives, including export strategies, and local direct investment strategies. If a firm decides to have a local presence in Venezuela, this requires a strategic understanding of local business conditions. The conditions investigated in this report include local marketing (advertising, distribution, pricing issues) and entry strategies (opening an office, joint venturing, etc.), as well as human resources management (labor laws, costs, regulations). Because local presence can increase exposure, the report next assesses a number of factors affecting business risks in Venezuela (again, benchmarked against regional and global averages). These include: political risks, legal risks, cultural/demographic risks. Risks can only be evaluated within a historical context; history, alas, often repeats itself. The final chapters summarize Venezuela's economic, political and social history. In doing so, the reader has a full appreciation of history's role in shaping Venezuela's current potential.



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