Brazil: Embracing Globalization?

1520 words 7 pages
Show More
BRAZIL: EMBRACING GLOBALIZATION?
Background
This case focuses on Brazil's development strategy since World War II and on the change of the economic model following the debt crisis of the 1980s. At the time of the case Brazilian officials are deciding whether regional integration or globalization offer the best route to economic prosperity and development. This case illustrates the challenges that developing countries face in defining trade policy. It also introduces the role of regional trade blocks as an alternative to globalization. At the current time regionalism seems to be very much in vogue and seems to be much more likely to be the basis for future trade system changes than comprehensive trade treaties.
Brazil's Import …show more content…

Argentina became Brazil's second trading partner after the US. Bilateral trade between Brazil and Argentina represented approximately 75% of the total trade flows in the region. Intra-regional trade had created opportunities for economies of scale mostly in the manufacturing sectors without a major displacement of local production in the Brazilian economy. The inter-sectorial specialization pattern favored Brazil. Mercosur allowed Brazil some flexibility to protect and expand considered important to the country. Thus Mercosur had brought short term but substantial economic and political benefits to Brazil.
Regional Integration and Globalization
Regional integration is a process by which countries remove the barriers to free trade and the free movement of people across national borders, with the goal of reducing the tensions that can lead to international conflict. It is an intermediate step toward the integration of developing countries into the world economy. The progress due to the regional integration is attributable primarily to domestic adjustment efforts, rather than to exogenous factors. These efforts feature the implementation of appropriate structural and macroeconomic policies designed to improve economic efficiency and create the conditions for greater integration into the world economy. Regional integration offers many advantages for developing countries. Closer trading links between these countries would strengthen their capacity to

Related

  • American Popular Culture and Its Impact in a Globalized World
    8526 words | 35 pages

    values and tastes of the native populations" (Pells 1997, 265). Critics nowadays, too, share the view that the popular cultural dominance of the United States will erode or even dissolve cultural diversity in the world. And globalization is said to be a major driving force. American pop cultural ex-ports are believed to promote a capitalist consumer society grounded on materialism. This consumer society in turn destroys traditional values and ways of living. One of the leading….

    Show More
  • Spectrum Brands Strategy for Diversification: Success of Failure?
    4646 words | 19 pages

    environmental factors of China and the United States (US); even though this strategy gave Rayovac strong access to export markets around the globe (p. C292). Rayovac acquired the Brazilian battery company Microlite S.A., headquartered in São Paulo, Brazil, for the negotiated price of $21 million with $8 million in assumed debt in 2004. There was also a contingent plan of cash payments of up to $7 million that depended on the….

    Show More
  • Danvita: Cultural Diversity in a Danish MNC
    7543 words | 31 pages

    vitaCultural diversity in a Danish MNC Vasilisa Sayapina and Katya Christensen Introduction Workforce diversity is a complex phenomenon and a major challenge for HR managers in MNCs. The case presents a Danish MNC, Danvita (not its real name)that has committed to pursuing a diversity strategy. The essence of a diversity strategy is a commitment to providing equal opportunities for employees regardless of their gender, age, nationality, disability and political and sexual orientation. In this case….

    Show More
  • A Comprehensive Analysis of Hyatt Hotels Corporation and How It Relates to Competition Within the Hotel Industry
    27363 words | 110 pages

    power 22 Buyer Power 22 Threat of substitutes 22 Threat of new entrants 23 Competitor Environment 23 Introduction 24 Future objective 25 Current strategy 26 Capability 28 Assumption 30 Driving Forces 31 Economic growth 31 Globalization 31 Technology 32 Room Service….

    Show More
  • Modernization of Ntuc Income Case Study
    14060 words | 57 pages

    C H A P T E R 4 Workplace Emotions and Attitudes Learning Objectives AFTER READING THIS CHAPTER , YOU SHOULD BE ABLE TO : I Define emotions and identify the two dimensions around which emotions are organized. I Diagram the model of emotions, attitudes, and behaviour. I Identify the conditions that require and problems with emotional labour. I Outline the four components of emotional intelligence. I Summarize the effects of job dissatisfaction in terms of the exit-voice-loyalty-neglect model….

    Show More

Popular Essays