Why is Everything so Expensive in Venezuela | BisnisAbiz

Rabu, 12 April 2017

Why is Everything so Expensive in Venezuela

inflation in venezuela

Want to know, why are things so expensive in venezuela ? if you really curious, find out now! ;) well, there are many reason why in some country in this case venezuela! prices of some goods, can be very expensive! the most logical reason are inflation! if some country have problems with their economic, and their currency fall down, import product will be very expensive! especially if they buy from foreign currency! 

This kind of situation such as inflation, or recession can happen in almost every country! but most of the time, the reason why some country have high inflation are simply because they are not productive! but for some country, that really productive and made so many things that most world will buy, automatically their currency price will increase! after all, its all about supply and demand! 

I assume now, you already know why is venezuela so expensive, yep! inflation and not productive! i.e import problems! if some country can produce their own goods without have to import, inflation will not happen! even if their price currency are falling down! why ? because they make their won product! but most cases, its very rare! every country always buy some stuff from other! so to not let inflation go more further, at least they have create something! and it can increase currency demand! for long run, their currency, can be really strong!

You can see USA as example! they have economic problems! yes, US doing import! in fact their trade balance are mimuns billions of dollar! but their currency still strong! and US can maintain inflation quite good, even better from other country! the reason simply because USD have high demand! but the real reason is because USA produce most of product that world will buy! e.g Software, PC hardware, Gadget, smartphone, cars, and etc! 

So the conclusion is, venezuela doing to many imports! low productivity, and as effect they have high inflation! for long run, it can be serious recession! high unemployment rates, low spending! i.e economic not growth!
Ditulis oleh: Bisnis dan peluang usaha BisnisAbiz Updated at : 16.11

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