When Should Multinationals Move Back into Venezuela?

Venezuela’s economic and political crisis is unlikely to become top of mind for Latin America regional executives and corporate centers, at least from a business standpoint. Most multinationals have fled the Venezuelan market over the last three years, amid growing difficulties to repatriate profits, import raw materials and finished goods into the market, get paid by local partners and the Venezuelan government, and more recently due to full-fledged expropriations and factory confiscations — all problems stemming from the abrupt reduction of U.S. dollars in the Venezuelan economy since oil prices started to plunge in April 2014. A return to growth will likely be long and painful. Companies should hope for the best and prepare for the worst.