Penn Foster Economics 1

786 Words Jun 1st, 2013 4 Pages
Economics 1, BUS 121
The economy of Brazil is in the top ten largest economies along with the United States. It is the biggest in Latin America. Actually it is the seventh largest in the world. Brazil has used its newly found economic mechanism to syndicate its outcome in South America and show more of a role in the Global Businesses. The Obama Administration’s National Security Strategy recognizes Brazil as a developing center of effect, and greets the management of the country’s joint and global issues. The United States and Brazil associations mostly have been good in the recent years. But Brazil has other strengthening relations with neighboring countries and expanding ties with nontraditional partners in the South that’s developing.
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dollar was close to an eight year shortage against the real, having lost more than 33% of its value during 2009 alone. During the past 12 month era, the exchange rate of the U.S. dollar (USD) has diverse from a low of BRL R $1.5310 to in height of BRL $1.7790. During 2010, the United States dollar typically kept an everyday exchange rate between (BRL) R$1.70 and (BRL) R$1.80, occasionally reducing below the (BRL) R$1.70 level.
However in 2011 it had so far been devastating to the dollar. Thru late July, 2011, the dollar dropped as little as R $1.5310, its lowest level since way before 2008 when the global financial crisis began. In April, 2010, the Brazilian Central Bank increased interest rates in the country, which took as its outcome the alliance of the real and the weakening of the dollar. The real touched quarterly in height of 1.7205 in April 2010, two days after the Brazilian Central Bank raised up the benchmark interest rate 0.75 percentage point to 9.5 percent. Later at that time, the Brazilian Central Bank has raised the standard interest rate to 12.5% in an effort to curb inflation. Although some do not see the central Bank raising the00201interest rates again in 2011, there should be many who would think at least one more raise of 0.25% before the end of 2011 if increase continues. Thanks to the huge capital inflows due to the huge sale of Petro Bras’ shares, the Brazilian real has been on a tear as of late. Yet, it is not just the recent equity