Macroenvironment Brazil
Essay by Nora1590 • February 22, 2012 • Case Study • 572 Words (3 Pages) • 1,716 Views
Macro Environment Brazil
political environment
1.Form of Government Federal presidential constitutional republic
2. How stable is the Government?
-GDP growth rate 5.2% (2008 est.)
-0.6% (2009 est.)
7.5% (2010 est.)
-inflation 4.9% (2009 est.)
5% (2010 est.)
3. Effective and ethical
-preferential treatment of local Producers
(GDP by sector) services: 67.4%
industry: 26.8%
agriculture: 5.8%
-corruption perceptions index 2010
(10 is the best/ 0 the worst) 3.7
4. international relationships/ members of
Organisations
Unasul, WTO, Mercosul, G-20
-exports (July 2011) Worth $201.9 billion (2010 est.)
Main exports are transport equipment, machinery, steel, airplanes, paper, electric machinery, iron ore, soybeans, footwear, coffee, autos and automotive parts.
Main export partners: China 15.3%, United States 9.6%, Argentina 9.2%, Netherlands 5.1%, Germany 4.0%
-imports (July 2011) Worth $187.7 billion (2010 est.)
Main imports are machinery, electrical and transport equipment, chemical products, oil, automotive parts and electronics.
Main import partners: United States 15.0%, China 14.1%, Argentina 7.9%, Germany 6.9%, Japan 3.8%
-Currency exchange rates 1.00 Euro (€) = 2.50 real (BRL)
Brazil is a federal presidential constitutional republic that means that the country is subdivided by states with a republic form of government and has a separate executive and legislator with the President Dilma Rousseff acting as both Head of State and Government.
After a record GDP growth of 5.2% in 2008, the onset of the global financial crisis hit Brazil at the start of 2009. The Brazilian economy experienced recession, as global demand for Brazil's commodity-based exports dwindled and external credit dried up, so that the GDP growth rate sunk at -0.6%. However, Brazil was one of the first emerging markets to begin a recovery. The confidence of consumers and investors revived and GDP growth returned to a positive of 7.5% in 2010, boosted by an export recovery. This strong growth and Brazil's high
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