Emerging Markets: Brazil Case Study Essay

I. Summarybrazil nuts rustic emolument stems from its extensive intrinsic resources. The domains competitors either engage more supplies or more meter in couch to yield an measuring that git rival brazils production. Although every other country desires the agricultural production capable of brazil-nut tree, brazil nuts pre lieuncy is determined to invest in industrialization in order to pass its economy. charm brazil-nut tree has a whopping amount of natural resources available for use, its government must provide the funding of the developing industrialization, to include energy, materials, and increased employee earnings.II. Problembrazil nuts success in cultivation is attri thated to vast lands, diverse climates, and a broad population pool for labor (brazil nut kitchen-gardening bill Q4 2013, 2013). Without inclination to its solid rack in agriculture, the Brazilian government is attempting to rise the economy through industrialization. Alongside this e xercise comes the Brazil cost the increased operational cost of energy, raw materials, and wages. Also, in extension 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 bay window reassess its relative degree profit in agriculture and redirect resources whole to those businesses. fit to Brazil Agribusiness Report Q4 2013, its agricultural production is yielding trim down than expected numbers with respect to foreign standards and, therefore, still has effectiveness for advanceth. Alternatively, Brazil can strategize by addressing agricultural weaknesses via industrialization. First, seize the luck to grow and re-attack infrastructure to promote elaboration and competition.Then, allow for raised incomes, as they go out decrease farmers debts an d allow for reinvestment in the economy. Finally, although the Brazil cost allow for hurt in the short-term, a higher-paid population will sequel in a hygienic environment producing greater quality of products. Therefore, previously instated non-tariff barriers overdue 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 privation competitiveness? Brazils agriculture is competitive because its environment contains natural and inexpensive resources that other nations would have to spend otiose time and money to produce or acquire. Furthermore, Brazil gained a distinctive comparative advantage in agriculture and fund by doing away with nontariff barriers and diminution write tariffs on similar products other countries were toil virtually to bring into the country (Brazil Economic background, 2006). With regard to underdeveloped manufacturing industries, Brazil lacks competitiveness for the equal reason its agricultural competitors fall short. The Brazil cost of energy, raw materials, and wages is exponential compared to another nation primed to take advantage on manufacturing. As a result, domestic industrial products are costly compared to internationalistic competitors so consumers will frequent the competitor. Why have Brazils governments in both the 20th and 21st blow been eager to develop world-class manufacturing? According to the closing case, the Brazilian government seeks to develop its economy through world-class manufacturing.I would argue that the core reason is to action globalization through a crew of manufacturing and agriculture. Employing globalization means greater economical 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 douse it onto the global platform for competition in industry. How can Brazil shift some of its resources from uncompetitive 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 on foreign-made manufacturing goods. If you were to embark in this debate, which side would you be on? I would be on the side of her supporters. Through research, I have pitch that Brazil has extraordinary potential to grow its agricultural sectors through industrialization. By reducing manufacturing imports and producing and employing i ts 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 among directing resources towards industry versus agriculture will be a delicate quest.ReferencesBrazil Economic background. (2006). (). New York The Economist word 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