The International Economic Environment of Brazil
The largest country in South America, Brazil is a country blessed with abundancenatural resources and manpower. Being surrounded by the Atlantic Ocean to it east, thecountry has an advantage for international trade unlike land lock countries.
Brazil’s economy has seen many ups and downs during the different periods
of globalization. Being a labour intensive country from the first wave of globalization has been
engages in agriculture sector and manufacturing of consumer goods. The country’s economy
has grown substantially in last few years. Speculations are been made that Brazil may emergeas one of the leading and powerful economies by 2050.Brazil an active full member of the Southern Common Market (MERCOSUR), theprime trading bloc in South America along with the World Trade Organization. The
European Union and USA are the country’s trading partne
rs. Brazil exports and imports avariety of goods and services, to and from different parts of the globe. Recently ethanolstands as it major produce goods and export.In terms of its GDP, Brazil continues to open up at a steady pace between 25% to28%. In
2009, Brazil’s Gross Domestic Product was value at USD 1,543.7 billion and in
accordance with the World Bank, It comprise 2.60% of the world economy.The
surplus in Brazil’s Current Account during 2003 –
2007 , pooled together withthe surplus in the Capital And Financial Account ever since 2006, has permitted a substantialbuildup of foreign exchange reserves which is estimated at more than 200 USD Billion in2008.The country is one amongst a small number of countries in up-and-coming worldmarket can who can survive global crises with no fear about increasing interest rates orimplementing other disaster measures. This clearly shows that even at a slower pace theBrazil is rising and stirring forward as a powerful future economy.