Emerging Markets: Brazil Case Study Essay

I. Summary brazils countrified advantage stems from its extensive natural resources. The nations competitors either practice more supplies or more time in order to yield an amount that rump rival Brazils production. Although every other country desires the agricultural production capable of Brazil, Brazils government is determined to invest in industrialization in order to modernize its economy. While Brazil has a large amount of natural resources available for use, its government must provide the funding of the growing industrialization, to include energy, materials, and increased employee earnings.II. ProblemBrazils success in agriculture is attributed to vast lands, diverse climates, and a large population pool for labor (Brazil Agribusiness say Q4 2013, 2013). Without regard to its solid bum in agriculture, the Brazilian government is attempting to modernize the economy through industrialization. Alongside this movement comes the Brazil cost the increased operating cost o f energy, crude materials, and wages. Also, in addition to paying more to industrialize, the government compensates domestic, uncompetitive industries enabling the theory of protectionism.III. Effective Solutions/StrategiesIn response to Brazilian President Dilma Rousseffs desires to become a world-class manufacturing base, the country can reassess its comparative advantage in agriculture and redirect resources solely to those businesses. harmonise to Brazil Agribusiness Report Q4 2013, its agricultural production is yielding lower than expected numbers with respect to international standards and, therefore, still has potential for growth. Alternatively, Brazil can strategize by addressing agricultural weaknesses via industrialization. First, seize the opportunity to grow and re-attack infrastructure to promote expansion and competition.Then, allow for raised incomes, as they pull up stakes decrease farmers debts and allow for reinvestment in the economy. Finally, although the Brazil cost will bear in the short-term, a higher-paid population will result in a hygienic environmentproducing greater quality of products. Therefore, previously instated non-tariff barriers due to health concerns will decrease allowing for a greater degree of expansion.IV. Questions for DiscussionWhy is Brazils agriculture so competitive? Why do its manufacturing industries lack competitiveness? Brazils agriculture is competitive because its environment contains natural and inexpensive resources that other nations would have to spend extra time and money to produce or acquire. Furthermore, Brazil gained a distinctive comparative advantage in agriculture and livestock by doing away with nontariff barriers and reducing import tariffs on similar products other countries were trying to bring into the country (Brazil Economic background, 2006). With regard to underdeveloped manufacturing industries, Brazil lacks competitiveness for the same reason its agricultural competitors fall s hort. The Brazil cost of energy, raw materials, and wages is exponential compared to another nation primed to capitalize on manufacturing. As a result, domestic industrial products are costly compared to international competitors so consumers will frequent the competitor. Why have Brazils governments in both the 20th and 21st century been eager to develop world-class manufacturing? According to the closing case, the Brazilian government seeks to modernize its economy through world-class manufacturing.I would argue that the core reason is to achieve globalization through a combination of manufacturing and agriculture. Employing globalization means greater economic growth and standards of living, as well as attracting numerous low-end manufacturing jobs. Therefore, by modernizing its economy, Brazil fortifies its potential as a developed economy, which could launch it onto the global platform for competition in industry. How can Brazil shift some of its resources from uncompetitive in dustries to competitive industries? Via resource mobility, Brazil can shift resources used in uncompetitive industries to competitive industries in order to bolster the competitive industries potential. Furthermore, the government can shift strategic intervention and subsidies from uncompetitive industries to competitive industries.ON ETHICS While President Rousseffs critics accuse her of ignoring Brazils lack of comparative advantage in manufacturing, her supporters argue that her policies index Brazil to reduce its dependence onforeign-made manufacturing goods. If you were to participate in this debate, which side would you be on? I would be on the side of her supporters. Through research, I have found that Brazil has extraordinary potential to grow its agricultural sectors through industrialization. By reducing manufacturing imports and producing and employing its own industrial products, Brazil not solitary(prenominal) increases domestic income and the standard of living, but also solidifies the nations comparative advantage in agriculture. Although, I will say that finding the balance amongst directing resources towards industry versus agriculture will be a delicate quest.ReferencesBrazil Economic background. (2006). (). New York The Economist Intelligence Unit. Retrieved from http//search.proquest.com.ezproxy.libproxy.db.erau.edu/docview/466598073?accountid=27203 Brazil Agribusiness Report Q4 2013. (2013). (). London Business Monitor International. Retrieved from http//search.proquest.com.ezproxy.libproxy.db.erau.edu/docview/1436333107?accountid=27203