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Marina86 [1]
3 years ago
9

Venezuela’s economic institutions differ from those of other nations in the region mainly because Venezuela

Social Studies
1 answer:
s2008m [1.1K]3 years ago
6 0

Answer:

(A) depends heavily on a nationalized oil industry.

Explanation:

The problem with Venezuela, is that it is what economists called a rentier state. Basically, it means that the country heavily relies on the extraction of natural resources to generate revenue for its country.

With Venezuela, this natural resource is oil. Due to its overreliance on this resource, when oil price went down, the country's economy went down with it. Other countries in South America - such as Brazil and Argentina - diversify their country's source of income, creating a buffer when one sector is experiencing a crisis; which unfortunately Venezuela did not do.

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