Economic and Financial Forces

Published: 2021-10-02 10:35:10
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Category: Poverty, Biodiversity, Brazil, Macroeconomics

Type of paper: Essay

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The economy of Brazil is the tenth largest economy in the world in terms of gross domestic product. This populous country is also considered to have the largest economy in Latin America. Brazil's economy is characterized as export-oriented and has a free market because of its expansive and well-developed agricultural, mining, manufacturing, and service sectors (“CIA World Fact Book,” 2008). In 1999, Brazil had an economic crisis that led to the devaluation of the real. But with austerity measures implemented by the government, the country was able to keep the inflation target and minimize overwhelming national debt (“Brazil's Economy,” 2008).

Having overcome the 2001-2003 financial turmoil, capital inflows have regained its strength and the currency appreciated. The appreciation has slowed export volume growth, but since 2004, Brazil's growth has yielded increases in employment and real wages. This was made possible by Luiz Inacio Lula da Silva's regime to promote market growth and economic reforms. The resilience of Brazil's economy is derived from the three pillars of economic program namely: floating exchange rate, an inflation-targeting regime, and a tight fiscal policy. (“CIA World Fact Book,” 2008).



Moreover, Economists predict that Brazil’s economy will grow by an annual average of 4. 1% in 2008-12, slightly below the average of 4. 4% for 2004-07. Domestic demand will make a much stronger contribution amid continuing real income gains and deepening domestic financial markets. Capital inflows will remain firm and the exchange rate will depreciate only modestly in 2008-12. The trade surplus will depreciate as domestic demand growth draws in imports, and the current-account is expected to record a small deficit in 2009-10 (Economic Intelligence Unit, 2008).
The economy of Brazil seems stable and looks like it will have a productive year despite its history on fiscal profligacy. Both the government and civil society are making a difference in the economy by addressing key issues on labor conditions, land, forest and biodiversity, consumer rights, transparency and accountability (“Brazil: Country of Inequalities and Diversities,” n. d. ). Also, investors and merchants would be enticed to Brazil's immense natural and human resources which are integral parts of any form of business.
More so, Brazil's recovery from its economic crisis and the improvement of its economic status signifies that they can be power players in the world market. Cost of Transporting Materials and Goods Brazil can be access by land, water or air. Land transportation has become more effective wherein 85% of Brazilians and their products are transported by road. The highways have modern design and link all the state capitals by paved roads. The Brazilian government is continuously employing ways on how to improve the roads because majority of the populace depend on it for their daily transactions.
This development of the highways illustrates the progress that has occurred over the last three decades. In terms of railway systems, efforts are intensified to connect the inland regions to coastal areas and even to Brazil's neighboring countries such as Argentina, Uruguay, and Paraguay. In addition, air and sea ports have also improved the links between the urban area to the rural area (Spagnola, 2001). Transportation of materials and products in Brazil would be problem free since all means are available in this country.
Every part of Brazil is connected with itself and the whole world making business transactions easier and faster. Country Image Brazil is widely-known as South America's giant. A land endowed with pristine beaches, virgin forests and manic metropolises that are inhabited by a multicultural society. Music and dancing are also integral parts of the country that attract foreigners to experience their cultural festivities in which led to the tourism boom. However, the wide gap of the rich and the poor and the harsh social conditions in urban cities are also known characteristics of Brazil (“Brazil: Overview,” 2007).
This country seems to have two opposing qualities. While it is a land of staggering beauty, it is also tainted with poverty and grief. It is a place where modern industry and commerce has prospered alongside prejudice, poverty and injustice (“Brazil: Country of Inequalities and Diversities,” n. d. ). In comparison with China and India who are considered as emerging giants, Brazil is significantly smaller in the size of both its population and its economy. However, the country is influential—“punching above its weight”—in international affairs.
Brazil has a lot of things to offer to the world, ranging from innovative social models like participatory democracy and the World Social Forum, to leadership on trade reform, and the rich diversity of its people and environment. Meanwhile, the principal issue of inequality will continue to affect the country’s social, political, economic and environmental progress. Solving the centuries-old divide in income, power and assets between the upper class and the masses will require serious and persistent efforts on the part of government, civil society and businessmen (“Brazil: Country of Inequalities and Diversities,” n. d. ).
Though the image of Brazil is seen in two different lights, it has still managed to showcase a unified country where investors, diplomats, scholars, and tourists can experience its social cultural and ecological biodiversity. Many facets of Brazil as a nation such as the economy, tourism, culture and political affairs were boosted because of these public perceptions. In conclusion, Brazil in terms of image have openly embraced both its good and bad side that generated a positive international country image. References
Brazil: country of inequalities and diversities. (n. d. ). SustainAbility. Retrieved February 14, 2008, from http://www. sustainability. com/sa-services/emerging_article. asp? id=420 Brazil's economy. (2008, February 13). The Economist. Retrieved February 13, 2008, from http://www. economist. com/research/backgrounders/displayBackgrounder. cfm? bg=616685 Brazil: overview. (2007). Lonely Planet World Guide. Retrieved February 13, 2008, from http://www. lonelyplanet. com/worldguide/brazil/ Central Intelligence Agency. (2008, February 12).
Brazil. The World Fact Book. Retrieved February 13, 2008, from https://www. cia. gov/library/publications/the-world-factbook/geos/br. html#Econ Economist Intelligence Unit. (2008, January 24). Brazil Economic Data. The Economist. Retrieved from February 13, 2008, from http://www. economist. com/countries/Brazil/profile. cfm? folder=Profile%2DEconomic %20Data Spagnola, M. (2001, April). Transportation. Brazil – A Cultural Treasure Chest. Retrieved February 13, 2008, from http://www. fmpsd. ab. ca/schools/df/Brazil/mtransportation. htm

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