Major Oil Companies Embrace Latin America Discussion Questions Help

Anonymous
timer Asked: Mar 9th, 2019
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Question Description

Please read this article and answer the questions.

1. Why do oil companies see Latin America as a prime location for international expansion?

2. What risks are oil companies taking when they expand into Mexico and Brazil?

3. What are the advantages and disadvantages of being a first mover in a country that has recently liberalized its government trade policies?

4. Why are natural resource based firms such as oil companies particularly exposed to political risk?



Your initial post should not be less than 500 words.

Each question should be answered in a separate paragraph.

Tutor Answer

agneta
School: UT Austin

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Question One
Latin American countries such as Mexico and Brazil have been identified as prime
locations for the expansion of oil for some reasons. One of the reasons is that by 2025 the world
will be requiring double the number of oil barrels it is using now and the already existing supply
countries will not be able to sustain this. Investing in other prime areas like the Latin American
countries is the left option (Whelan, Trevisani and Olson 2018). A second reason is that a
country like Mexico offers cheaper opportunities as compared to the United States shale regions....

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