Country Analysis

Country Analysis of Brazil

Economic and Financial Forces

The economy of Brazil is the tenth largest economy in the world in terms of gross domestic product . This populous country is also considered to have the largest economy in Latin America . Brazil 's economy is characterized as export-oriented and has a free market because of its expansive and well-developed agricultural , mining manufacturing , and service sectors ( CIA World Fact Book ' 2008

In 1999 , Brazil had an economic crisis that led to the devaluation of the real . But with austerity measures implemented by the

government , the country was able to keep the inflation target and minimize overwhelming national debt ( Brazil 's Economy ' 2008 . Having overcome the 2001-2003 financial turmoil , capital inflows have regained its strength and the currency appreciated . The appreciation has slowed export volume growth , but since 2004 , Brazil 's growth has yielded increases in employment and real wages . This was made possible by Luiz Inbcio Lula da Silva 's regime to promote market growth and economic reforms . The resilience of Brazil 's economy is derived from the three pillars of economic program namely : floating exchange rate , an inflation-targeting regime , and a tight fiscal policy ( CIA World Fact Book ' 2008

Moreover , Economists predict that Brazil 's economy will grow by an annual average of 4 .1 in 2008-12 , slightly below the average of 4 .4 for 2004-07 . Domestic demand will make a much stronger contribution amid continuing real income gains and deepening domestic financial markets Capital inflows will remain firm and the exchange rate will depreciate only modestly in 2008-12 . The trade surplus will depreciate as domestic demand growth draws in imports , and the current-account is expected to record a small deficit in 2009-10 (Economic Intelligence Unit , 2008

The economy of Brazil seems stable and looks like it will have a productive year despite its history on fiscal profligacy . Both the government and civil society are making a difference in the economy by addressing key issues on labor conditions , land , forest and biodiversity , consumer rights , transparency and accountability ( Brazil : Country of Inequalities and Diversities ' n .d . Also investors and merchants would be enticed to Brazil 's immense natural and human resources which are integral parts of any form of business . More so , Brazil 's recovery from its economic crisis and the improvement of its economic status signifies that they can be power players in the world market

Cost of Transporting Materials and Goods

Brazil can be access by land , water or air . Land transportation has become more effective wherein 85 of Brazilians and their products are transported by road . The highways have modern design and link all the state capitals by paved roads . The Brazilian government is continuously employing ways on how to improve the roads because majority of the populace depend on it for their daily transactions . This development of the highways illustrates the progress that has occurred over the last three decades . In terms of railway systems , efforts are intensified to connect the inland regions to coastal areas and even...