Read the Country Focus on Chavez's Venezuela (page 42), then answer the following questions:

1. Under Chavez's leadership, what kind of economic system is being put in place in Venezuela? How would you characterize the political system?

2. How do you think that Chavez's unilateral changes to contracts with foreign oil companies will affect future investment by foreigners in Venezuela?

3. How will the high level of public corruption in Venezuela affect future growth rates?

4. Currently, Venezuela is benefiting from a boom in oil prices. What do you think might happen if oil prices retreat from their current high level?

5. In your estimation, what is the long-run prognosis for the Venezuelan economy? Is this a country that is attractive to international businesses?

Please read the Management Focus section and answer the following questions:

1. Discuss the concept of property rights protection and why it is so important to companies.  What does the court ruling against Xing Ba Ke mean for other companies that are already doing business in China, or are considering entering the market?

2. How important is the Chinese market to Starbucks?  Does the presence of look-alike companies like Xing Ba Ke deter firms from entering the market?