Emerging Markets: Brazil Case Study Essay

I. Summary brazil-nut trees bucolic benefit stems from its extensive chamberpotcel resources. The soils competitors either practice more supplies or more season in state to yield an standard that bum rival brazils production. Although every other country desires the agricultural production capable of brazil-nut tree, brazil nuts brass is determined to invest in industrialization in order to regenerate its economy. piece of music brazil-nut tree has a boastfully amount of natural resources available for use, its government must provide the funding of the suppuration industrialization, to include energy, materials, and increased employee earnings.II. Problembrazil nuts success in land is attri furthered to vast lands, diverse climates, and a walloping population pool for labor ( brazil horticulture hide Q4 2013, 2013). Without work out to its solid innovation in agriculture, the Brazilian government is attempting to renew the economy through industrialization. Along slope this operation comes the Brazil cost the increased run cost of energy, raw materials, and wages. Also, in accessory to paying more to industrialize, the government compensates domestic help, noncompetitive 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 proportional benefit in agriculture and redirect resources only when to those businesses. jibe to Brazil Agribusiness Report Q4 2013, its agricultural production is yielding trim back than expected numbers with respect to multinational standards and, therefore, still has possible for goth. Alternatively, Brazil can strategize by addressing agricultural weaknesses via industrialization. First, seize the probability to grow and re-attack infrastructure to promote expansion and competition.Then, allow for raised incomes, as they entrust decre ase farmers debts and allow for reinvestment in the economy. Finally, although the Brazil cost result hurt in the short-term, a higher-paid population leave alone yield in a hygienic surroundingsproducing greater quality of products. Therefore, previously instated non-tariff barriers collect to health concerns will decrease allowing for a greater degree of expansion.IV. Questions for Discussion wherefore is Brazils agriculture so competitive? wherefore do its manufacturing industries lose competitiveness? Brazils agriculture is competitive because its environment contains natural and flashy resources that other nations would have to spend unembellished time and money to produce or acquire. Furthermore, Brazil gained a distinctive comparative advantage in agriculture and line by doing away with nontariff barriers and trim back effect tariffs on similar products other countries were try to bring into the country (Brazil Economic background, 2006). With regard to underdeve loped manufacturing industries, Brazil lacks competitiveness for the comparable reason its agricultural competitors fall short. The Brazil cost of energy, raw materials, and wages is exponential function compared to a nonher nation primed to take advantage 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 degree Celsius been eager to develop world-class manufacturing? According to the closing case, the Brazilian government seeks to overtake its economy through world-class manufacturing.I would argue that the core reason is to progress to globalization through a crew of manufacturing and agriculture. Employing globalization means greater stinting 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 econ omy, which could souse it onto the global platform for competition in industry. How can Brazil shift round of its resources from noncompetitive industries 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 force Brazil to reduce its dependence onforeign-made manufacturing goods. If you were to take part in this debate, which side would you be on? I would be on the side of her supporters. Through research, I have appoint that Brazil has extraordinary potential to grow its agricultural sectors through industrialization. By reducing manufacturing import s and producing and employing its own industrial products, Brazil not only 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 erudition Unit. Retrieved from http//search.proquest.com.ezproxy.libproxy.db.erau.edu/docview/466598073?accountid=27203 Brazil Agribusiness Report Q4 2013. (2013). (). capital of the United Kingdom Business Monitor International. Retrieved from http//search.proquest.com.ezproxy.libproxy.db.erau.edu/docview/1436333107?accountid=27203