Richard Yu

T. Gindling
02/18/15
Econ 385
Economic of Developing Economies
Weekly Report #2

The article I chose is titled Venezuela's currency devaluation set to further hurt
U.S. companies' profits by Tim McLaughlin and Richard Valdmanis. In this article Tim
and Richard state how Venezuela is directly affecting the United States by their
devaluation of currency. Pepsi Co. specifically has felt a major impact to the Venezuela
financial crisis. Pepsi used to be valued at 1.13 billion dollars, but now it is said to be
valued at only 170 million dollars. But however, some companies, for example Ford are
deciding to flee like how Clorox did last year. With companys fleeing Venezuela or
going in a negative direction, I fear that this will start a domino effect for all other
companies placed in Venezuela to do the same.
The reason why I chose this specific article is because its amazing to see how a
medium size country like Venezuela would have a big impact to the countries around the
world.