Question

By early 2016, Venezuela’s economy appeared to be on the brink of total collapse. What do you think needs to be done to reverse this?

refer   http://www.chegg.com/homework-help/march-5-2013-hugo-ch-vez-president-venezuela-died-losing-bat-chapter-2-problem-6cdq-solution-9781259686696-exc

Answer 1

Venezuela economy appeared to be on the brink of total collapse. Inflation rate was touching 700 %, export was dwindling, GDP plummeted by 8 %, Unemployment rate was surging high. Following steps would help to tame over the economic crisis:

• Government must free currency and let the market decide its rate. Accordingly, export would be beneficial and import would become costly.
• Further, government must invite FDI or foreign capital increase the foreign exchange reserves.
• Going for loans, Government can approach international agencies for loans.
• Lastly, government must deregulate price controls.