Strategic alliance between Venezuela and Nicaragua for the construction of an oil refinery

Abstract

International trade has a changing and dynamic nature which has required a constant review of strategies to maintain and expand trade links, which are always directed at absolute, comparative and competitive advantages. Over time, it has been shown that in the main of trade, lies the combination of these factors and the actions that countries take to perfect and specialize in the production of goods and services. On the premise that each country concentrates on making greater efforts to produce goods that for different reasons, whether geographic, climatic or technological, establishes the description of the Strategic Alliance between Venezuela and Nicaragua for the construction of an oil refinery considering the potentialities of Venezuela as the main producer and supplier of oil and especially fuel derivatives in the Caribbean Sea Basin; But with significant weaknesses in agricultural production; While Nicaragua is a major agricultural and livestock producer in Central America, although lacking fuels and terrestrial communication channels that limit trade, the methodological approach is descriptive from an explanatory level; For this reason, the author proposes in the context of PETROALBA, to look deeply into the principles of equity and complementarity. The main conclusion was that weaknesses and potentialities become key factors in stimulating trade and achieving stable and secure markets.