Economics Case Study Assignment | Keeping Brazil’s Economy Hot

Added on - 28 May 2020

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Running head: CASE STUDY ANALYSISCase Study Analysis: Keeping Brazil’s Economy HotName of the Student:Name of the University:Author note:
1CASE STUDY ANALYSISAnswer 1Brazil holds the 5thposition among the largest countries of the world. It is the largesteconomy of the Latin America. The country has shown exceptional growth in the past decade.The Brazilian government controls majority of the economy and more than 40% of the country’sGDP constitutes the government expenditure. The government has taken the initiatives forexpanding the trade volume. The expansion in exports of products as well as natural resourcesand huge level of investments by the foreign companies has contributed in the economic growth.However, the government’s efforts can see a setback due to the trade policies with China. Chinais the largest purchaser of Brazilian exports, although it does not purchase the amount that Brazilexports to China. Another major issue is the appreciation of the real (Pacheco, Benini andMariani 2017). As the foreign companies are investing in the country, huge amount of moneyhas flowed into it, resulting in the rise in the value of the real. It has made the Brazilian exportsexpensive and imports cheaper. Thus, the growth of exports has slowed down. The governmentmust take the measure for devaluing the currency and improving the trade balance with China tokeep the economy growing.
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