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The Bolivarian Republic of Venezuela is located in Northern South America bordering Colombia, Brazil, Guyana, and the Caribbean Sea. Venezuela is about twice the size of California and covers an area of 912,050 sq. kilometers. The total population is 26.8 million and is growing at a rate of 1.508% with 93% living in urban areas. The capital of Caracas has a population of 3.2 million with other main cities including Maracaibo and Barquisimeto. The people are governed by a federal republic and are predominately Roman Catholic. The primary language is Spanish and the local currency is the Venezuelan Bolivar. Venezuela has an economy heavily dependent on oil revenues accounting for 90 percent of export earnings and 30% of GDP. The economy is under tight government control and many of the large industrial firms have been nationalized. High government spending has led to enormous rates of inflation. Venezuela’s main trade partner is the US accounting for 43% of exports and 27% of imports. Other major trade partners include Colombia, Brazil, China, Mexico, Panama, and Netherlands Antilles. Its primary imports are raw materials, machinery and equipment, transport equipment, and construction materials. Exports include petroleum, bauxite and aluminum, steel, chemicals, agricultural products, and basic manufactures. Venezuela’s GDP (Purchasing Power Parity) is $357.9 billion and is growing at a real rate of 4.9% with an inflation rate of 31%. Venezuela ranked 174th out of 181 countries in the World Bank Group?s Ease of Doing Business Ranking due to strict government controls on business.

CURRENCY EXCHANGE RATE

06/23/09 $1 = 2.14 VEF

Franchising Laws Overview

Disclosure laws:

· None.

Relationship laws:

· A statute for determining whether to exempt certain franchise agreements from the country’s Pro-Competition Law.

Registration laws:

· None.