Brazil: Embracing Globalization?

brazil nut?s Import Substitution StrategyAfter the Great stamp in 1930, the Import Substitution plan of attack was adopted by close nations in Latin America.The logic behind this approach was to fill in import products with those locally produced. In this case, Brazil?s strategy was characterized by massive government investment, slant guideing of key industries, and protection against tilt with towering tariffs walls. The Import switch strategy was an effort to modernize, annex the gain rate of the providence and enforce the domestic turnout to be strong luxuriant to compete more expeditiously in the international markets. As a result of this strategy, the Brazilian economy taked rapid growth and economy variegation between 1950 and 1963 (See video display 1) specially the industry and services sectors (See Exhibit 2). After of 13 geezerhood of economic growth, this strategy brought oppose side effects to the country. puffiness began to rise and the economy starte d to experience balance of payments problems addressed by devaluating the currency and attracting foreign capital. In 1973 when the first oil jolt took place, Brazil was importing 80% of its oil. The government designed a plan called ?National increase Plan? that included a huge investment political program and incentives for the local companies to increase the import substitution strategy.

But at this time, the strategy didn?t result as they expected, instead, the foreign debt and ostentatiousness increased. (See Exhibits 3 and 4). Mercosur and regional Integration InitiativeBetween 1981 and 2000 Brazil went th ough a lot of problems. maven of the gover! nment?s major precedency was to increase exports by overcoming two kinds of problems: internal factors included high tax warhead and inadequate infrastructure and external problems such(prenominal) as wide alteration of trade barriers that kept Brazilian products out of the world market. cardinal way to meet these goals was to enrol in World grapple Organization to fight... If you want to get a full essay, aim it on our website: OrderCustomPaper.com

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