The Global Gas Company (GGC) is headquartered in Norway. The CEO is aware that Venezuela and Bolivia have some of the world’s largest gas reserves (State University of Michigan, 2001-2010). In order to provide abundant supply for the future to some of their clients in South America, they want to tap into these vast reserves. But both countries have difficult political situations at present. The CEO has called you in as a consultant to analyze the political and economic risk factors in both countries. The CEO knows that the GGC should start trying to develop a long term relationship to increase the possibility that the company can partner to supply gas to clients over the long term (10+ years). So he has hired you as an outside consultant knowing that there is no right or wrong answer.
Remember, you are working for a Norwegian company.
There are two components to this assignment:
1.Read in your text: pp. 81-84 regarding managerial benefits, risks, costs and advantages. Use your Globaledge site: http://globaledge.msu.edu/resourcedesk/
2.Analyze the economic and political risk factors involved in the business scenario: Write a minimum 1 page paper in the template provided (double spaced in Times New Roman 12 pt type). Make sure not to just copy and paste statistics without properly citing your sources. There is no right or wrong answer. You will be graded on your analysis of those statistics and reports. Make sure to address all the Checklist items below in the template provided.
Checklist:
•Compare the economic and political pros and cons of investing in the gas industry Bolivia and Venezuela.
•Based on your analysis, explain which country you would start establishing a relationship with as a basis for potential future business in the gas industry and why.
Note: Citation and Reference help are in the Template on page 2
Reference
State University of Michigan, (2001-2010). Bolivia risk assessment. Retrieved from http://globaledge.msu.edu/countries/bolivia/risk/