Topic > Economic Growth in Brazil - 1484

INTRODUCTION As one of the BRIC countries, Brazil is emerging as a developing economy that contributes to world trade with its abundance of agricultural products and natural resources. Global trade and foreign direct investment contribute to economic growth and social progress by raising living standards and reducing poverty across the country; especially in Brazil.FACTORSMany factors are contributing to economic development and growth in Brazil. Government policies, reduced barriers to trade and investment, free markets, labor laws, open banking systems, and privatization have facilitated global trade and foreign direct investment. Resources The Brazilian economy is highly diversified across numerous sectors and is supported by the export of agricultural products, natural resources, manufacturing and a multitude of services. Diversification of its exports reduces the risk from unexpected and unanticipated market shocks, which provides strength and stability to investments. Brazil also has a trade surplus from its exports, which provides a lot of optimism for the country. According to A to Z Business World (2014), “Brazil is considered the world's leading producer and exporter of numerous agricultural products including coffee, sugar cane, tropical fruits and, more recently, soybeans.” The agricultural sector represents approximately 23% of the Brazilian economy (IB Times, 2014). Brazil is also considered one of the world's leading food suppliers. With all the global food shortages, Brazil has become dependent on the trade of its agricultural commodities. Agricultural raw materials also contribute to Brazil's trade surplus. Brazil is renowned as a world leader in the agricultural sector...... middle of paper ......hn Deere & Hitachi have collaborated to produce backhoe loaders and excavators in Brazil. The company is confident that the investment will be a success due to its long history of selling equipment in Brazil and due to Brazil's growing infrastructure investments. (Business Insights: Global, 2014) SUMMARY AND CONCLUSION In summary, world trade is a mutual benefit and mutual cooperation between countries is the goal to achieve economic well-being and global competitiveness through job creation, increasing people's standards of living and lifestyles. many individuals around the world. Reduced barriers to trade and investment, free markets, government policies and open banking systems have contributed to the success of foreign direct investment in Brazil and around the world. It is only a matter of time before Brazil emerges as a developed country.