The Bric : A Powerful Force

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.

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.

First, we need to understand how the Great Recession occurred. It all started with President Ronald Reagan in the 1980s. Reagan was famous for his supply-side economic views (Amadeo 1). He used top-down economics meaning he used government intervention to give businesses tax breaks and subsidies to create economic growth. With this he also started a continuing phenomenon to deregulate Wall Street. He believed this would create vast economic growth and it did. But it created a bubble and it

While other post war countries struggled, the United States was booming with prosperity in the “roaring twenties”. The unexpected economic collapse led to both financial and political repercussions. Prior to these events, the international economy was already unstable. When the stock market crashed, American businessmen pulled out of overseas investments. Sparked by the Great Depression and the sudden lack of production, world trade experienced a dramatic decline. Without supply and

During the 1920’s business was booming, many Americans were using credit cards to buy materials that they knew they could not pay back, businesses were producing products in an efficient manner, the cycle of debt was inevitable and electricity was being used in every American home. However, years later disaster strikes, on October 29 1929 Americas once healthy economy with a 4% unemployment rate suddenly spiraled out of control due to the stock market crash where billions of dollars were lost since many Americans wanted wealth and would go to any measure to achieve it which lead to careless investments and many investors raced to take their money out of the stock market as soon as it crashed. This unstable economy did

Prior to the Great Depression, America’s economy was prospering. After World War I, the United States’ economy expanded due to factors that include more railroads being developed, automobiles being developed and more international trade happening. The stock market was on the rise greatly improving the wealth of Americans all over. A lot of Americans had put their money into to the stock market as a way to gain money. Much of the money that Americans invested were borrowed money. Because a lot of the money that Americans invested was borrowed money and banks were putting their money in stocks, when the stock market crashed on October 29th, 1929, millions of Americans lost their money. These were some of the factors that led to the time period known as the Great Depression. In response to the Great Depression, Franklin D. Roosevelt created a series of programs and

The government stepped in and bailed out the banks for making poor decision and providing home loans to individuals who could not afford those loans. The government also bailed out large vehicle business like Ford and Chrysler that would not change their business modern to keep up with foreign vehicle companies that could produce low efficiency vehicle at a lower price. America had outsourced most of the manufacturing jobs and we no longer had the ability to fully employ our own workforce. Businesses could operate in foreign counties and make a profit. The hard-working American workers were pushed aside, because the company could make more profit by operating overseas and utilizing foreign

This also helped the United States out of recession, while European countries increased the value of American goods. The economy of Great Britain was destabilized, though the United States became the primary investor in different parts of the world.

For more than a decade, from 1929 to 1940, America’s economy failed to operate at a level that allowed most Americans to attain economic success. A worldwide depression struck countries with market economies at the end of the 1920s. Although the Great Depression was relatively mild in some countries, it was severe in others, especially in the United States. The Great Depression left the American economy in ruins with problems that would take decades to fix. Government involvement increased in an effort to reconstruct our recession stricken economy.

In itself this was a terrible event, but from which recovery was possible. The problem was there were too many other variables that were working against the US at the same time (the ones I listed above). When all of these events happened the US tried to call in loans from around the world but it was too late. The economic crisis had become one that was no longer bound to the confines of the US.

Between 1929 to 1939, one of the most important economic events in American history created an economic slump that occurred in North America, Europe, and other areas around the world - the Great Depression. It would have been prevented if enough responsible people would have had prior experience with the economic situation, fixing the problems in their minor state rather than waiting for them to escalate. The credit structure of the economy, the debt structure, and the international trade were the causes.

In the early 1930s, the Great Depression devastated millions of Americans. There were 13 to 15 million people unemployed and half of the banks failed. With the unemployment rate so high, the U.S government was incapable of doing any significance for the country. Investors lost their savings and capital on new companies. The American economy was threatened by no innovation or productivity to increase economic growth. Until the United States entered World War I, which the American economy started booming. Manufacturing companies were able to come back alive and strong because of the war. Then America was booming until the the crash of 2008. In 2008, the economy had a similar depression state like in the 1930s. The unemployment rate skyrocketed

Kvint (2008) indicates that some statistics of reports on emerging market are contradictory, and this inconsistent situation even can be seen from IMF’s reports. For instance, some emerging countries like China and India are classified as emerging markets and are included in the category of developing countries. On the other hand, many of the sub-Saharan countries as emerging markets are definitely still undeveloped. Kvint (2008) suggests that the main and most important characteristic of all emerging market countries is that they are at some stage during the processes of economic maturation and development of free markets. An attractive environment for foreign investors and global trading has been created based on this characteristic. He suggests the main characteristics in his study:

It was the long-term fundamental issues that resulted in the collapse. American companies reached record profits during the 1920s and reinvested much of these funds into expansion. By 1929, companies had expanded to the bubble point. Workers could no longer continue the expansion, and a slowdown was unavoidable. As corporate profits went through the roof, so did the wages. However, the workers were not keeping pace with the increase in the cost of living or the wealth in the hands of the industrialists and others in the upper income classes. The richest one percent of Americans owned over a third all American assets. Wealth concentrated in the hands of a few limits economic growth. The wealthy tended to save the money that could have been put back into the economy if it were spread among the middle and lower classes.

There are many significant change in the world economy occurred, marked by globalization each country has different speed of development under different political and cultural background. During this period, Such as the United States of America 's economic status from the rapid development to the decline, then move to the current stable trend. Brazil, Russia, India, China, which named ‘BRCIS’ those developing countries’ economic performances are very catch the attention in recent years. The decline and rise of these countries ' commercial economy are closely related to their political culture. Therefore, it attracted the attention of scholars and research circles.