Risk analysis (Brazil) - Research Paper Example

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Risk analysis (Brazil)

The official currency is the Real that divides into 100 Centavos. Moreover, the country pursues industrial and agricultural growth and development of its interior. This entails exploiting the extensive natural resources in the country and utilizing the large labor pool. Today, Brazil enjoys the top position as the leading economic power and a regional leader in South America. In addition, the country led in the economic recovery efforts in the region. However, a wide gap in income distribution and crimes remain greatest problems in Brazil. The Wall Street Journal reported on Brazil’s economic growth on for the second quarter of the year 2012. According to the article, Brazil’s Listless Growth Continues, there is a continued slump in the country’s economy despite efforts by the government to salvage it. Government statistics show that there was slowed growth in the second quarter registered at 1.6%, much lower than the projected value. Brazilian government implemented tax cuts, record interest rate cuts and campaigned to weaken its currency in order to ignite more economic activities. However, these efforts did not increase the pace and the economy was still sluggish (Fick, Magalhaes and Lyons). The report further indicates that the country registered the fastest growth rate in the world during the global financial crisis in the recent years. ...Show more

Summary

Instructor Date Risk Analysis Abstract Brazil gained its independence in 1822 after a long struggle with the Portuguese rule. The country’s coffee exporters politically dominated the administration until 1930. For about fifty years, a military government ruled Brazil until 1985 after which the power was handed over to civilian rulers…
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