Venezuela
Presented To:
Backstage
Dancewear- Tap
Shoes
Presented By:
Location:
Puerto Cabello
Mathematical
Location:
10°N 68°W
Situation:
Gulf of Triste
Formal Region:
Northern South
America, Venezuela
Functional Region:
Puerto Cabello
Demographic
Transition
Birth Rate: 20.29/1,000
+
Death Rate: 5.14/1,000
=
Natural Increase Rate: 1.5%
A somewhat high birthrate and a
lower death rate means that
Venezuela is in stage three of the
demographic transition. Natural
increase rate has declined, but
population is still growing. This
stage of the demographic
transition is beneficial for
Backstage Dancewear because the
country is industrialized,
infrastructure is improved,
government has funds, people are
educated, and labor is cheap.
What caused the industrial
revolution in Venezuela to boom
was the discovery of oil on their
land. The market crashed when
oil prices dropped. Money earned
now is by manufacturing and steel
production.
Demographic
Analysis
Guyana vs. Venezuela: Guyana has a
birth rate of 18/1,000 and a death
rate of 7/1,000. It has a natural
increase rate of only 1.1%. This isn't
the best for production because the
country is closer to stage four of the
demographic transition, which means
larger costs. It also has a higher
death rate and lower birthrate than
Venezuela.
Brazil vs. Venezuela: Brazil has a
birth rate of 18/1,000 and a death
rate of 6/1,000. It has a natural
increase rate of 1.2%. It has a lower
natural increase rate than Venezuela
and more deaths.
Colombia vs. Venezuela: Colombia
has a birth rate of 18/1,000 and a
death rate of 5/1,000. It has
a natural increase rate of 1.3%. It is
close to Venezuela as far as rates go,
but has fewer births.
All countries are in stage three of the
demographic transition, the ideal
stage for production. A larger natural
increase rate is desirable. Venezuela
has the highest out of it's neighboring
countries.
Economic
Development
Primary Sector:
-Farming: corn, sorghum, sugarcane, rice,
bananas, vegetables, coffee
-Live Stock/ Animals: beef, pork, milk, eggs,
fish
-Mining: iron ore
Secondary Sector:
-Mills/ Smelting: petroleum, steel, aluminum
-Factories: construction materials, food
processing, textiles, motor vehicle assembly
Tertiary Sector:
-a lot of international trade jobs
-doctors,nurses, paramedics etc; (social
medicine)
-retailers
-police force, law
This level of development is suitable for
manufacturing because more than 15% of the
population is working in the secondary
sector. That means cheaper labor costs. There
are also enough workers in the tertiary sector
to ensure safety and efficient help if
needed. Higher than 5% in the primary sector
means the country is developing, which is
suitable for a factory to be put there. The
people will accept low wages.
Site Factors: Land and Labor
Site
Factors:
Resources
Proximity to Inputs:
-white leather: cows are the
main ranching animal of South
America
-steel: Venezuela has some
iron ore mines and steel
factories
-thread and material: there are
many textile factories in
Venezuela and thread and
material can generally be
bought and made anywhere
Proximity to Markets:
This is a bulk-reducing industry
because the leather and steel
come in as larger parts and are
shaped and cut to make
something smaller; a tap shoe.
Situation
Factors
Headquarters:
Pearland, Texas
It is 1,158 miles
from Puerto
Cabello to the
headquarters, all
by ship.
Cost to ship our
product to
Pearland is
$38,000 including
freight container
and gasoline costs.
Infrastructure:
Transportation
*anything that is 30,000 is
really much higher than that
because the graph wouldn't go
any higher
Roads:
-Venezuela: 96,155
-Brazil: 1,751,868
-Colombia: 164,257
Waterways:
-Brazil: 50,000
Infrastructure:
Communication
Taxes
Social
Stability
Elections in Venezuela are free
and open. Even women have run
for president. The government
generally duplicates America's. A
difference is that the presidential
term is six years instead of
four. Human rights are very
similar, but have caused a lot of
controversy, especially with the
freedom of speech. Some
branches of Venezuela's
government have fought against
each other and even broken
off. Most corruption has occurred
because of the discovery of oil in
Venezuela. Prices fluctuate and
incomes are inconsistent. The
money earned in the oil industry
was being spent by the
government on buying loyalties
instead of improving
infrastructure. Angry
citizens protested this with a lot
of success. There are many
improvements seen in their
government. Venezuela ranks the
second least corrupt nation in
Latin America .
Conclusion
Venezuela has its drawbacks such as higher corporate taxes and poor communication , but we
can be assured that because the government is a stronger one, Backstage Dancewear will be
protected and cared for. Labor is cheap, and infrastructure in Puerto Cabello is good. Brazil
seemed a good location also, but its further distance from Pearland, Texas would cost much
more. Choosing this nortern side of South America means no costly passage through the
Panama Canal and it's nearly "crow flies" to headquarters. This company will benefit by building
a factory in Puerto Cabello, Venezuela.