The challenges and response to globalisation in Brazil.|
1.1 History of Brazil3
1.2 Population, Inflation and Growth rates4
1.2.1 Figure 1 Brazil GDP Growth Rate4
2. 0 Globalisation5
3. 0 Brazil’s economic drivers6
4.0 Opportunities and threats8
4. 1 Opportunities8
4.3 Responses and recommendations8
1.1 History of Brazil
Brazil is said to have been discovered by Portuguese navigators during the 15th Century, and was claimed by Pedro Cabral in 1500 during which was maintained as a Portuguese colony until 1815 where it became united with Portugal. Brazil later gained independence from Portugal during 1822 where it became the Brazilian Empire and has been a republic since 1889. Brazil is the only Portuguese-speaking country in South America and also the largest of the South American Latin countries, occupying almost certainly half of the South American continent. The land itself covers a vast majority of land, approximately 8.5 million sq km, resulting in the 5th largest country in the world, with the climate mainly tropical as it crosses the equator. The north and also central portions of Brazil are occupied mainly by the rain forests of the Amazon River. The current Brazilian president is Luiz Inάcio Lula da Silva of the Workers Party who was elected president in 2002. His successful election was vastly influenced by the intention to end poverty for millions of struggling Brazilians by creating jobs and therefore income and mainly decreasing Brazil’s possible vulnerability to any external crisis. After a successful first term, which reflected his election intentions, he was later re-elected in 2006. Although deforestation is still an issue in Brazilian culture, after it was reported by the Brazilian government in 2005 that 1 fifth of the Amazon had been destroyed, however since then severe efforts have been met in order to ensure the protection of the Brazilian environment that is the Amazon. Laws to stop illegal logging have been put in place and also certification of land ownership has been improved. Some of the main exported goods are iron ore, coffee, sugarcane, and oranges.
1.2 Population, Inflation and Growth rates
The Brazilian population is was estimated in 2008 to be approximately 194.2 million, making it the most populated country in South America and the 5th the most populated country in the world. 1.2.1 Figure 1 Brazil GDP Growth Rate
Brazil has the 8th world GDP making it an industrial power and economic giant. Figure 1 above shows how Brazil is slowly but steadily recovering from the recent recession which had a huge impact on the rate of GDP, at its worst declining by approximately 9%. The overcoming of the recession may be due to the increase in global demand for the products and services which Brazil manufactures and exports. The current inflation rate for Brazil is 5.70% after necessary interest rate cuts in order to reduce inflation in the price of goods.
2. 0 Globalisation
The term globalisation refers to the process by which the interactions of countries of the world develop throughout the global economy. The developments and advances which are made through communication, transportation and infrastructure have a huge impact on the technological, cultural and political exchanges made. Subsequently, globalisation has had a great deal of importance in many countries and businesses throughout the world with a magnitude on the United Kingdom which became primarily the first economic superpower in the world. The connectivity and independence of the worlds markets are essentially improved by globalisation; as a result this method is being used increasingly throughout the past decades by many businesses and markets resulting in the process as a whole steadily improving and also...