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Old 03-04-2009, 09:54 PM
 
Location: Great State of Texas
86,093 posts, read 69,922,493 times
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I'm posting this here from a business point of view..NOT political.

Chavez orders nationalization of Cargill - CNN.com

snippet:

"Venezuelan President Hugo Chavez said Wednesday he had ordered the nationalization of at least some of the operations of the U.S.-based food giant Cargill and threatened to do the same with the Caracas-based food maker Polar.

Venezuela President Hugo Chavez accused Cargill of growing specialized rice to evade price controls.

"Begin the expropriation process with Cargill," he said in a nationally televised speech in which he accused the company of growing specialized forms of rice in an attempt to evade price controls."





This is the 2nd big corporation to have their off shore plant taken over - Exxon-Mobil got nationalized there last year.
Effects of offshoring ? Not like Cargill can go to the US courts for action.
Could this be the start of a trend as the global economy sinks lower and lower ?
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Old 03-04-2009, 09:59 PM
 
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He just need the money now that oil prices are down.In teh end it just means that no foreigtn company will invest in hsi country. bad for them in a global economy.
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Old 03-04-2009, 10:04 PM
 
Location: Socialist Republik of Amerika
6,212 posts, read 11,456,589 times
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What will happen to Cargill's bottom line?
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Old 03-04-2009, 10:43 PM
 
9,817 posts, read 19,029,157 times
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Who would do business there now?
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Old 03-04-2009, 11:06 PM
 
Location: Socialist Republik of Amerika
6,212 posts, read 11,456,589 times
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Quote:
Originally Posted by wanneroo View Post
Who would do business there now?
Iran, Russia, Cuba... etc. etc.
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Old 03-05-2009, 01:45 AM
 
Location: western East Roman Empire
6,112 posts, read 10,159,452 times
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Quote:
Originally Posted by HappyTexan View Post

Could this be the start of a trend as the global economy sinks lower and lower ?
Quote:
Originally Posted by freedom

Iran, Russia, Cuba... etc. etc.
Yes, sometimes I have the impression that Venezuela, and to a lesser extent Bolivia and Ecuador, are microcosmic experiments in what could be a global trend, with other "more established" countries (in this sense) also acting as models.

As the terms of trade become more unfavorable for just about everybody, governments around the world may become increasingly concerned with gaining control over the production and distribution of the basics, like water, food, electricity, telecommunications, and construction materials.
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Old 03-05-2009, 05:22 AM
 
Location: Charleston, SC
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No surprise there... it seems like every time they talk about nationalizing something it happens soon after. I doubt the people they put in charge know how to run things - not a good move.
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Old 03-05-2009, 07:19 AM
 
Location: Weston, FL and Vero Beach, Fl
2,945 posts, read 11,942,231 times
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As another poster mentioned - Chavez is creating a model that other Latin American countries will follow suit. Chavez is losing on the economic front from Venezuela's primary commodity - oil. He has to generate revenue another way. Not being an economist, he will find that by putting the squeeze on foreign companies will guarantee him some of that lost revenue, but this may cost him in the long run. And, in turn, foreign companies will also be affected. Some will pull out and find other friendlier countries to do business. It's not like foreign companies are there because they want to play good cop - it's all about the bottom line. It becomes a delicate balance.
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Old 03-05-2009, 08:27 AM
 
Location: Houston, TX
17,032 posts, read 26,038,911 times
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In the last 6 months wasn't Chavez asking for technological assistance for oil(investments) from outside sources? He nationalized the oil companies but they dont know how to run or take care of them. Same will happen to the food companies.

Is he targeting China as a business partner? The Russians and most middle east countries dont have a lot of spare cash now.
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Old 03-05-2009, 08:33 AM
 
17,749 posts, read 15,036,578 times
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Quote:
Originally Posted by scuba steve View Post
No surprise there... it seems like every time they talk about nationalizing something it happens soon after. I doubt the people they put in charge know how to run things - not a good move.

Hi scuba steve,

The problem is of reputation. If I ran a country in central or south America I would be wary of the multinational companies as well. They do not have a good history of treating the locals as anything but slave labor. United Fruit company is a classical example of this and they even used political assassination to achieve its ends. Its not always easy to see the difference between trade and exploitation. Its often just a price. Any thing under minimum wage is legally considered exploitation and anything above it is considered legitimate trade.

As far as Cargill, I don't blame them. Cargill has been juicing us for years with corn subsidies. I wish Chavez would come over here yank their subsidy.
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