StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Brazil and Rapid Economic Change and Growth - Research Paper Example

Cite this document
Summary
The paper "Brazil and Rapid Economic Change and Growth" will make an earnest attempt to explore the most striking feature of the globalization scenario that is the rapid expansion of the operation of the multinational organizations operating in developing countries…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER92% of users find it useful
Brazil and Rapid Economic Change and Growth
Read Text Preview

Extract of sample "Brazil and Rapid Economic Change and Growth"

This paper focuses on Brazil, one of the developing countries, that is growing at a rapid speed and is intensely getting affected by globalization (Schirm, n. d.).

Globalization and Economic Expansion:

            After globalization, Brazil is undergoing many economic changes. Its net amount of business with the rest of the world has increased significantly after globalization. The country is now experiencing a large volume of flows of economic resources (from human capital to natural and physical capital). The volume of trade is significantly increasing over time (Schirm, n.d.). The close association of economic expansion and globalization is also true in the case of Brazil. Due to economic expansion (the effect), after globalization (the cause), Brazil’s economy is experiencing a much higher level of output as well as a much higher rate of growth. Since the level of trade is one of the most important measurements of judging whether an economy is expanding, it can easily be said that over the last twenty years Brazil is going through the take-stage. These economic factors are affecting the country’s social and cultural aspects also (Tucker, 2008, p. 408). Both these aspects together are creating rapid economic growth throughout the world and these are significantly affecting the world economies. These effects are sometimes positive and sometimes negative. In the face of this rapid economic growth Brazil, like other developing countries, such as India, Russia, China, Indonesia, etc., is also facing some challenges and triumphs (Schirm, n.d.). Brazil’s economy was stagnated with hyperinflation during the eighties. After following a method of import substitution and separation for a considerable period of time Brazil entered the global scenario. Fernando Collor was the first voted president of Brazil in 1960 to initiate an impression of stabilizing the currency, lowering tariffs, and destabilizing the public administration via budget cuts. This marked the beginning for Brazil of opening up into the world economy (Fishlow, 2000).

Globalization and Brazil:

                Due to the occurrence of globalization the developing nations, such as Brazil, are experiencing rapid changes in their economic, social and general lives. Brazil’s economy has largely been changed after globalization. Its economy is now hugely dependent upon the world economy. Brazil’s overall income level of GDP is much higher now. This economy is much more open. This openness ensures a high-income level. Not only that, the rate of growth of Brazil’s economy is much higher now. The economy is experiencing every bit of the progress of the global economy. The level of trading, i.e. the volume of exports and imports is growing in number. The infrastructural improvements are considered as one of the measurements of the impact of globalization, so it can easily be said that this impact has been very positive on Brazil’s economic structure. It is quite clear that like all other developing nations Brazil has properly used the benefits of globalization. It is now a globally recognized economy in terms of the ranges of exports and imports and also in terms of the level of income and the rate of growth of income (Globalization and Emerging Economies, 2009).

Economic expansion and Brazil:

                The financial system of Brazil is budding fast. After the liberalization of the economy, it is experiencing a significant growth path in terms of aggregate income and infrastructure. Brazil is the largest economy in Latin America and one of the largest economies of the world in terms of market exchange rates and purchasing power parity. Aircraft, automobiles, footwear, steel, coffee, etc. are the rapid budding sectors in Brazil. These are hugely contributing to the development of the economy of Brazil. It is one of the member countries of the emerging countries of the world named BRIC countries. The level of FDI and FPI are getting into the country in large volumes and hence pouring benefits to the economy. Multinational corporations are investing lots of money that is actually accelerating the growth of the country (Schirm, n.d.).

Social and cultural aspects and drawbacks:

                The society and culture of Brazil are also getting influenced by globalization and economic development. The country consists of various cultural and social dimensions that are hugely correlated to world cultures. In fact, like all other developing countries, it now belongs to the single global culture. But the problems like the global financial crises of 2007-08 and 2011 are negatively affecting the economy since it depends more upon the global market. It is also increasing social disparity and scarcity in Brazil (Schwartzman, 2003). Despite all Matins-Bekat and Kulkarni (2009) points out that Brazil’s economy behaves in line with Kuznets's prediction in terms of the Gini coefficient. This implies that economic growth brings about higher income inequality.

Conclusion:

                In spite of the drawbacks that the economy of Brazil is experiencing being dependent largely upon the global financial markets, the positive impacts can never be ignored. It is estimated that this economy will be the fifth-largest market in the world in the next decade (Schirm, n.d.). The way the economy is growing, like other developing countries of the world, this forecasting will soon be realized.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Developing nations' (Brazil) specific challenges and triumphs in the Research Paper”, n.d.)
Developing nations' (Brazil) specific challenges and triumphs in the Research Paper. Retrieved from https://studentshare.org/management/1437916-developing-countries-describe-the-developing
(Developing nations' (Brazil) Specific Challenges and Triumphs in the Research Paper)
Developing nations' (Brazil) Specific Challenges and Triumphs in the Research Paper. https://studentshare.org/management/1437916-developing-countries-describe-the-developing.
“Developing nations' (Brazil) Specific Challenges and Triumphs in the Research Paper”, n.d. https://studentshare.org/management/1437916-developing-countries-describe-the-developing.
  • Cited: 0 times

CHECK THESE SAMPLES OF Brazil and Rapid Economic Change and Growth

The economic growth and financial development relating to brazil

This piece of research paper presents a literature review on the economic growth and financial development in Brazil, based on various economic theory and developmental concepts.... The macroeconomic concepts regarding Economic growth will be detailed and explained in the paper in order to compare and contrast empirical results and theory in relation to the economic growth in Brazil.... Different views regarding economic growth are detailed and these are applied with the case of the economic growth of Brazil....
16 Pages (4000 words) Essay

Brazil economic overview and solar power in Brazil

“In 2010, consumer and investor confidence revived and GDP growth reached 7.... %, the highest growth rate in the past 25 years” (Brazil Economy – overview, 2012).... Even though the economic growth in Brazil has been slowed down a bit in 2011, the forecasts for 2012 and coming years are bright.... “Despite slower growth in 2011, Brazil overtook the United Kingdom as the world's seventh largest economy in terms of GDP....
6 Pages (1500 words) Essay

Brazil as an emerging market

The nature of changes experienced as part of the history and evolution of the emerging market's formation goes a long way to determine the rate of growth and development that may be generally associated with the market.... This is because for several years running, the market has recorded slow growth in exports as against the contributions that local market activities make to the country's gross domestic product (He, 2009).... There is also a history rapid growth in the private sector as against the public sector....
4 Pages (1000 words) Assignment

The Massive Economic Potential

The paper 'The Massive Economic Potential' presents developing nations that are learning that working together on common goals and principles can fuel growth everywhere.... 'Neill has mentioned that the BRIC nations do not have to be aligned politically or form a trading bloc similar to that of the European Union, but he only suggests that these four nations work together from an economics point of view to become the dominant supplies of manufactured goods and services, which will help fuel economic growth worldwide (Investopedia, 2012)....
10 Pages (2500 words) Term Paper

Choose a country fromLatin America and explain how globalisation has affected it in the last 10years

This apparent lack of connection from the world trade flow indicates the fact that the growth of Brazil is caused, to a considerable extent, by the domestic investment and consumption.... “While the US remains a major market and supplier for Brazil, economic strength and diverse interests have propelled the nation to focus on membership in regional organizations, notably the Latin American and Caribbean Community of States, a bloc that excludes US and Canada” (Casas-Zamora, 2010)....
12 Pages (3000 words) Essay

International Business in Brazil

The country has seen growth from an economy that relied more on expo the rotation of few primary products to the present-day economy that characterized by a large and diversified industrial sector.... razil has an estimated population of about 200 million people which is a rad growth from the million in 1900.... In matters of the national economy, the Brazilian government has a pivotal role and influence in many aspects of the economy and its consequential growth....
12 Pages (3000 words) Assignment

Brazil: a New Regional Power in World Economy

This paper 'Brazil: a New Regional Power in World Economy' will be addressing the questions: How does Sãu Paulo's economic growth reflect Brazil's integration in the global economy?... And how does the economic growth of Sãu Paulo affect the quality of life of its residents?... Sãu Paulo contributes to the economic growth and progress of Brazil.... In addition, it will try to understand in what way, on what extent does the development of Sãu Paulo reflects, and mirrors Brazil's national development The continued increase in the number of megacities in the contemporary period is brought about by factors that can be considered as precipitators for change....
41 Pages (10250 words) Case Study

Food Security in Brazil

Since food security remains a chronic issue, it is also better to understand the economy of brazil and how trade enhances food production in the country.... The main objective of this study is to delve into the food security issues in brazil and give recommendations that will help better the current situation.... But mostly, the concept of food security is looked at as including both physical and economic access to food that meets people's dietary needs as well as their food preferences....
6 Pages (1500 words) Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us