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Latin America

Bacchus4.0

(6,837 posts) Sat May 21, 2016, 09:42 AM May 2016

Coca-Cola Forced To Stop Production In Venezuela [View all]

http://news.sky.com/story/1699800/coca-cola-forced-to-stop-production-in-venezuela

Coca-Cola is halting production of its namesake soft drink in Venezuela for the foreseeable future due to a shortage of sugar.

The US company says it is being forced to take the action because it has run out of the raw material.

Venezuela's economy is teetering on the edge of collapse with widespread food shortages and inflation forecast to surpass 700%.

Last month, Venezuela's largest food and drinks company, Empresas Polar, stopped production of beer because it was unable to obtain enough imported barley.

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Coca-Cola Forced To Stop Production In Venezuela [View all] Bacchus4.0 May 2016 OP

Car parts, barley, sugar... Ghost Dog May 2016 #1

They can't get the dollars to import raw materials Bacchus4.0 May 2016 #2

You say the likes of Toyota, Coca- Cola, and the country's Ghost Dog May 2016 #3

They don't in Venezuela. That's why Ford and Coca Cola closed shop Bacchus4.0 May 2016 #4

Oh, indeed, why, temporarily, operate at a loss? Ghost Dog May 2016 #6

Yes, they need to implement more domestic production but not collectivisation Bacchus4.0 May 2016 #13

How would the government be able to import things? hack89 May 2016 #14

It's not complicated. COLGATE4 May 2016 #5

Ok, thanks. So the government runs a variable- rate exchange control Ghost Dog May 2016 #7

They have several different rates. No other country is prepared to COLGATE4 May 2016 #8

What happens if the exchange controls are eased Ghost Dog May 2016 #9

They can't. They don't have enough dollars. In addition, the economic dislocation is so COLGATE4 May 2016 #10

Yes. But rather than a return to 'normal', Venezuela's economy Ghost Dog May 2016 #11

The VZ government was moving in that direction when Chavez was COLGATE4 May 2016 #12

That would require an enormous infusion of foreign capital hack89 May 2016 #16

US dollars are the currency of the global economy hack89 May 2016 #15