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Mesoeconomics Essay

1617 words - 7 pages

Max Louis
2/1/2014

Project Executive Summary

After doing some extensive research, I am for us establishing a business operation in Brazil. My reason is not only Brazil the world’s fifth largest country; it is also the world’s fastest growing in economy and is the third largest in the Americas. The culture in Brazil is derived from Portuguese culture. The culture was also influenced by African, Italian, German and non-Portuguese European cultures and traditions. The official language in Brazil is Portuguese. The population of Brazil is about 190 million, so finding local qualified applicants would not be a problem.
Brazil is a developing country that offers great opportunities for ...view middle of the document...

In 2005, soybeans and soybeans derivatives exports alone earned over $9 billion US dollars for Brazil. There has been some stability of the last decade regarding Brazil corn farming. The government expects the corn production to soar to about 24%. It looks like a lot of growers have already shifted a lot of their land to soybeans. This crop will be big. So I recommend that we do establish a business in soybean farming instead of corn. For this growing season, it is predicted that Brazil’s plantings of soybeans at 56.6 million acre.
Brazil’s economy to foreign business is positive because it is large and diverse by almost any standard. Nearly all of the former state companies are now controlled by the private sector. The backbone to this successful economy is its natural resources, agriculture and abundant human resources. Today, Brazil is looking into expanding their economic opportunities by opening doors to industrial development financed largely by international loans and investments. Therefore, exports disclose a more balanced mix of commodities and manufactured items. Changes in Brazil are being made in order to welcome foreign business such as lowering trade barriers and the opening of the economy to globalization. The southeast and the south regions are where most industrialization is taking place since they are the wealthiest areas of Brazil. The other regions of northeastern and central western regions are mostly agriculture and poor because economic programs have not been updated.
The economic climate in Brazil as of 2011 has changed a lot. Fears of their stability of staying competitive have risen, so their steady upward growth has come to a stop. This slowdown of industry growth forecasts symbolizes a turnaround for its economic policy. The Brazilian government must find measures in order to combat this downfall and eliminate fears. As Laura Tulchin states on her article, "Brazil Growth Forecast for 2012 Cut to 3.8%," "The government has reduced its growth forecast for 2012 from 4.5% to 3.8%, again citing global causes, and has introduced a stimulus package that cuts interest rates from 11.5% to 11%. Interest rates have been high in Brazil because of widespread fear of inflation related to strong growth" (Tulchin, 1). The Brazilian economic climate was fueled with optimism in 2010 with its 7.5% growth. This brought relief and served as a reward for all Brazilians. It had been something that they had been waiting for and hoping for. This also led to a positive future forecast in Brazil’s position in regards to its economic and political system globally. This served as a tool to defend them and to warn others that they have become a strong nation with valuable resources.
As the article mentions, “This optimism, as well as the largest discovery of oil fields in the Western hemisphere in the past 30 years, has allowed the Brazilian government to finally free themselves from the old saying that “the future is always tomorrow’ and...

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