Please read Chapter 1 and review the ppts and watch the video clip “Brazil: The world’s next economic super power?”.
Then answer the following questions:
1. How is Brazil a strategic competitor? Explain
2. Is Brazil a hypercompetitor? Explain
3. What impact does Brazil have on the global economy? Explain
4. What resources, capabilities, and core competencies does Brazil have? Explain
5. What are the stakeholders associated with Brazil’s thriving economy? Explain their significance.
Answer is as per the video only because access to PPTs and chapter has not been provided.
1) Brazil is s strategic competitor-
Brazil was the last country to enter Great Recession and first one to leave it. It has also thrown off France and Britain to gain the position of 5th largest economy. Also it has vast amount of resources and skilled labor that is being tactfully used by the current government to move the country ahead in full throttle. This can very well classify them as strategic competitor.
2) Brazil is a hypercompetitor because it is bringing in changes at a fast pace that is overthrowing major economies and changing the face of many industries. For instance, with latest discovery of oil fields, it has become potential threat for many countries and change the landscape of oil industry. The governance changes being introduced within the country are creating a huge market for consumerism by pushing people from lower class to middle class and making them skilled labourers. Aircraft, agriculture, oil are few industries where Brazil is rising as a hypercompetition for major economies of the world.
3) Brazil’s impact on global economy-
Most people think of passion and love for soccer, Samba and carnivals when they recall of Brazil while not witnessing its important instruments like the sky scrapers in Sao Paulo manifesting great wealth and prowess, largest cattle industry, commodities. While most of the key economies of the world are stagnant, Brazil is growing at a tremendous rate of 7%, 3 times faster than America.
4) Resouces, capabilities and core competencies-
Land is three times of the USA, vast farmlands and abundance of other natural resources and 14% of world’s fresh water. It is the largest producer of Iron ore in the world and leading exporter of beef and chicken, orange juice, coffee, sugar. They are acting as producers for a great market like that of China’s. They have huge auto industry and manufacturing industries along with skilled labour. They have created 1.5 million jobs last year. Conditions changed in Brazil with change in governance. There was a striking disparity between the rich and the poor. President provided stipend of $115/month to poor families just for sending their kids to schools and taking them to doctors. This step helped 21 million people to rise above poverty, into lower middle class creating a huge market for consumer products. World Cup and Olympics were huge win ways for the country to showcase them on international platform. They have a huge oil field discovery worth 1 trillion dollars. Putting them as 3rd or 4th largest producers of oil.
A) Stakeholders associated with Brazil’s thriving economy are its people who can either become a part of a super power or a 3rd world country if things do not turn out the right way.
B) The markets like China, the USA, India where consumerism is growing and need more resources from countries like Brazil to sustain.
C) Stakeholders can also be key people of Brazil like politians and strategists who will now have say in important decision making that concern the global affairs