Brazil- A World Economic Power in the Making *

            

Details


Case Code : CLIBE063
Publication date : 2005
Subject : Business Environment
Length : 04 Pages

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Abstract: ICMR India ICMR India ICMR India ICMR India RSS Feed

The caselet traces the growth of Brazil's economy over the years. It focuses on the BRIC report written by Goldman Sachs' global economic team. It goes into the history of inflation in Brazil and focuses on the Real Plan implemented by the Brazilian government to control inflation. It analyzes the potential of Brazil as a global economic powerhouse based on the study conducted by Goldman Sachs.

Issues:

Brazil - Leading the growing economies of the world
Predictions of Goldman Sachs
History of Brazil's inflation
The 'Real' Plan of Brazil for economic growth

Introduction

Brazil is known for its soccer prowess rather than its economic strength. However, slowly and steadily, Brazil has been making its mark on the world economic scenario.

With well-developed agricultural, mining, manufacturing, and service sectors, Brazil's economy has overtaken many other South American economies and is expanding its presence in the world markets. Brazil was one of the fastest growing economies in the world between 1930 and 1995, with an average annual growth rate of 6.1 percent.

By 2000, Brazil's per capita income stood at R$6,500. In 2002, Brazil signed a trade and cooperation agreement with Russia, India, and China calling it "BRIC."

Questions for Discussion:

1. Comment on Brazil's history of inflation.
2. Do you believe in Goldman Sachs report that Brazil is going to be one of the top six economies in the world by 2039? Justify your answer.

Key words:
BRIC, Brazil, Russia, India, China, economic strength, agricultural, mining, manufacturing, service sectors, Gross Domestic Product (GDP), Goldman Sachs, report, G-6 countries, U.S., Japan, Italy, France, Germany, U.K., inflation, currency appreciation, Real Plan, World War II, European Union (EU), fiscal strategy, Constitutional Amendment, Social Emergency Fund, liberalization, foreign exchange policy, foreign direct investment (FDI), pre-privatization era, privatization, investors, electricity crisis





* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.