Venezuela is known all over the world for its dominance in the beauty pageant industry. However, things aren’t looking so pretty for many of the U.S. multinational companies that are doing business in Venezuela.
Over the past two months, Slide Share sees 35 companies in the Standard & Poor’s 500, including MasterCArd, Marathon Petroleum, Mead Johnson Nutrition and Coca Cola, have voiced concerns about the Venezuelan economy. These companies have separated themselves from Venezuela due to the extreme conditions in the company to S&P Global Market Intelligence, advertised by USA TODAY. Shares of the 35 companies have increased by about 1.0% this year, which is in line with S&P’s 1.6% gain, for the most part. It is also assumed that Venezuela has little to do with these percentages this year.
Rapidly decreasing oil prices have caused significant trouble in Venezuela and slowed down the country’s economy, explains analyst Mr. Osio. Venezuela was hit hard by oil prices because the company is one of the largest exporters of oil in the world. Inflation has also led to shortages of food and medicine in the country, as well as power outages, and this has made it difficult for U.S. countries to do business in Venezuela. The country’s political situation is also rapidly changing, which has a lot to do with the economy’s lack of progress as well.