When Venezuela takes food plants away from Cargill....

[Egalitariat]

will they pay Cargill for the plants? How do they negotiate the price? Is it an arms-length transaction?

[Captain Hilts]

1. They do not have to do so. But if they're smart, they will offer some payment. nt

[Egalitariat]

2. How does Venezuela do in the way of attracting new foreign investment?

[conspirator]

6. fuck foreign capital. Venezuela can produce their own brains and capital nt

[cali]

7. no. they can't. whether we like it or not.

[Lyric]

12. Yeah!!! Isolationism rules!!

:eyes:

[ProgressiveProfessor]

3. I would expect them to pay a pittance if anything

And there will be long term impact of the ability of Venezuela to get captial investment in the future as long as the current leadership is in charge.

[conspirator]

5. delete

[ConcernedCanuk]

4. will they pay Cargill for the plants? - every business they nationalized got paid

.
.
.

"expropriation" is the term - it's a mandatory sell

but the companies DO get reimbursed for their assets/investment

most likely NOT to the company's satisfaction,

but YES

they get paid

"On his weekly presidential talk show Sunday, Venezuelan President Hugo Chávez warned that if rice processers attempt to shutdown their plants to protest the state’s intervention, “we will expropriate all of their plants, and convert them from private property into social property.” The Venezuelan constitution guarantees indemnity in the case of expropriation.

/snip/

In a press conference Monday, Polar Chief of Operations Jesús Carmona admitted that the plant was diverting 90% of its rice to artificially flavored products. He said Polar had chosen this route because the actual cost of rice production is more than four bolivars per kilogram, nearly twice the regulated price of 2.33 bolivars per kilogram.

Carmona also said the plant was operating at half its capacity because of a shortage of rice on the market.

In rebuttal, Samán reported that INDEPABIS officials had found more than 16,000 tons of unpackaged, un-modified rice stored at the plant, which is what the workers began packaging on Monday. Juán Serrano, a spokesperson for the labor union at the plant, confirmed that the stored rice is enough to sustain production for two months if the plant operates at its maximum capacity.

In addition, Agriculture and Land Minister Elías Jaua said that nation-wide there are now 300,000 tons of stored rice, with the dry season harvest underway, so Venezuela’s monthly demand of 90,000 tons of rice should be satisfied if processers and packagers comply with the government’s food security laws."

http://www.venezuelanalysis.com/news/4256

note -

Hugo has taken control, not taken over the companies, YET

He's giving them a very stiff warning

shape up or ship out

and that word in his own words

"expropriate"

that's when a government PAYS to take over property/assets.

[ProgressiveProfessor]

8. But is he paying fair market value, what the company would get if they sold it to another owner?

Not ignoring the social justice issues in favor of the businesses, but concerned about long term capital flight which could continue to hurt the Venezuelan people long after Chávez is gone.

[ConcernedCanuk]

9. I hope, that you being a teacher, would know how to find out the answers . . .

.
.
.

I'm an auto mechanic with a keyboard . . .

:freak:

[cliffordu]

16. Well played, Sir!!!

:rofl:

[ConcernedCanuk]

17. ...

.
.
.

[ProgressiveProfessor]

18. No way to tell. In the past the payments have indeed been a pittance

[tritsofme]

10. There really is no such thing as fair market value in Hugoland right now.

Most potential buyers of such a firm would be discouraged from investing due to the fact that their assets could be seized by the government.

[ConcernedCanuk]

11. Can you give me some links to support that statement?

.
.
.

I am seriously following this Venezuela thing - and I haven't seen anything to support your claim

Regarding "expropriation"

I am quite familiar with that in that my father being in our transportation system, was partially responsible for "expropriating" property along the edge of highways, farmers fields an so on - to widen the road from 2 to 4 lanes and so on

"expropriation" isn't stealing

the landowners get paid - and sometimes much more than the land is actually worth to expedite the construction

So give me, and the other DUers here evidence of what you claim to be happening in "Hugoland"

And prove to me and others that the settlements are not fair

I haven't seen it . .

[Lyric]

13. "prove to me that the settlements are not fair"

Yet another stunning example of logical thinking, brought to you by DU'ers for Chavez, LLC.

*sigh*

[ConcernedCanuk]

14. Octobrain? - are you related to . . .

.
.
.

oh nevermind . .

[Cleita]

15. Not sure but I believe Hugo has made some compensation to companies and people whose

land and assets he has nationalized. However, being from South America myself, the usual thinking when nationalizing foreign interests is that those companies made enough in profits at their expense during their time there, so they really deserve nothing. Some countries will compensate for plants and equipment but not more. As I said though I can't speak for Hugo because I don't know that much about his dealings with foreign interests.