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Venezuela is a developing country that derives much of its

Question: Venezuela is a developing country that derives much of its export earnings from oil. Use the Dutch Disease framework to explain the possible effects on production and trade of its nonoil industries following of a sudden hike in oil prices, similar to that seen in summer 2008. What are the public policy issues that your analysis raises for Venezuelan policy makers?

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Finance Basics: Venezuela is a developing country that derives much of its

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