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Student Essay

741 words - 3 pages

Brazil

Brazil is the largest and most populous nation in South America with a total surface of about 8.514.200 km² (covered by one-third of rainforest) and a population of approximately 192,273,000 inhabitants.
The following table illustrates Brazil’s import and export figures which help to get a concret overview of its world trade:

|Brazil | |
|GDP – Composition by sector (2008) |Agriculture: 5.5% |
| ...view middle of the document...

This is maintained through strong external demand of its products like crude oil, coffee and soybeans.
The fact that Brazil’s major export products include a huge amount of agricultural goods (low tech products) could lead to a trade deficit because these products are strongly exposed to market fluctuations. However, Brazil does not only concentrate on these goods today because it begins to diversify its export assortment with products from the manufacturing sector (44.1% export of manufactured goods). Furthermore a very active export policy has contributed to a booming in export earnings since 2002/2003, from a trade deficit of about $8 billion to a surplus of $46 billion[1]. Another important aspect one has to mention is Brazil’s import restrictions. They do not import any meat because of the anxiety that this meat could contain bacteria which could cause the spreading of illnesses.
The fact that Brazil discovered a huge oil field in 2007 gives its economy more stability and wealth (compare table: 29.2% export of crude oil and 8.6% export of fuel oil) because in the upcoming years, the nation could become one of the major oil exporters worldwide.
However, Brazil experienced more than 6 months of recession as the global demand for its commodity – based exports decreased because of the economic crisis, started in 2008. Fortunately, Brazil was not hit that hard by the crisis like other...

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