Discuss the impact of globalisation on Brazil:
Globalisation refers to the integration between different countries and economies and the increased impact of international influences on all aspects of life and economic activity. Brazil is one of the fastest growing economies and superpower of South America. In the recent decade Globalisation has allowed Brazil’s economy to sustain stable economic growth, this was proven when Brazil experienced a very mild recession during the Global Financial Crisis of 2008. Due to the high levels of economic growth as well as increases in GNI per Capita Brazil’s government has also been able to implement successful macroeconomic policies that have allowed for consistent economic development. Though Brazil has benefited greatly from Globalisation they also have experienced many problems including the currency crises in the 1980-90’s which caused the country to undergo a complete economic restructure. Brazil also faces problems with environmental deconstruction that due to globalisation that are yet to be solved. Globalisation impact on Brazil Economically:
Brazil’s failure to embrace Globalisation in the 1960’s 1970’s and 1980’s caused Brazil to be unable to fund its foreign debt and ultimately experience a currency crisis in the early 1980’s. Through the 1960’s and 1970’s successive governments sought to create a large industrial base and minimise Brazil’s dependency on imported manufactured goods. Brazil relied on foreign debt borrowing to fund this industrialisation movement but rather than increasing its economic integration the purpose of this industrialisation was for Brazil to become less heavily dependent on imports and more self sufficient; reducing reliance on the global economy and going against principals of globalisation in becoming more integrated. Due to large amount of foreign debt and Brazil’s inability to service this debt due to small amounts of export revenue Brazil’s debt servicing ratio...
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