Impact Of Globalization On Brazil And Brazil

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The Impact of Globalisation on Brazil: Introduction The process of integration of economies around the world, known as globalisation, has catalysed the development of Brazil as a powerful emerging economy, through the expansion of trade and investment. Emerging countries are defined as those progressing toward becoming more advanced, through rapid growth and industrialisation. Consequently, Brazil’s rapid economic growth has secured its place in BRICS, an association of five major emerging economies, Brazil, Russia, India, China, and South Africa. Economic Growth and Economic Development Since 2000, Brazil has significantly improved its economic performance. Strong global demand and high prices for its commodity exports resulting…show more content…
Since then, however, the level of unemployment has steadily decreased as shown in Figure 2 from 12.3% in 2003 to the current standings of 4.7%, a result of increasing levels of economic growth and development. Figure 2: Brazil 's unemployment rate since 2002 Rates of Inflation The impacts of globalisation have dramatically reduced Brazil’s rates of inflation in the past two decades. The inflation rate in Brazil averaged 390.85% from 1980 until 2014; however, the competitive pressure brought forth by globalisation as well as the associated increase in efficiency and output has served to keep inflation rates low in recent years. The current inflation rate is 6.59% in Consumer Price Index. However, Brazil’s reliance on FDI inflows has resulted in the elevation of inflation rates by 4.5% following the Argentinean Economic Crisis, which saw the depreciation of import prices. Figure 3: Brazil 's inflation rate (CPI) since 2000 (TradingEconomics. 2014) External Stability The increasing integration of trade between economies resulting from globalisation has stimulated high levels of economic growth for Brazil, minimising the country’s current account deficit (CAD). However, a recent steep decline in Brazil’s trade surplus, which narrowed to $2.6 billion in 2013 from $19.4 billion in 2012, has widened the current account deficit to $81.37 billion
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