Brazil: An Emerging Economy with Strategic Competitiveness

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Please watch the video clip posted
on the top and read the passage below. Then answer the questions at the end of
the passage:

Brazil: An Emerging Economy with
Strategic Competitiveness

With stagnant economies across the
world, Brazil’s economy is growing at 7%–3 times faster than America. Brazil
is a huge country being slightly larger than the continental US with vast
expanses of airable farmland, an abundance of natural resources, and 14% of the
world’s fresh water. With the world’s greenest economy, 80% of Brazil’s
electricity comes from hydropower and it has the most sophisticated biofuel
industry in the world. Brazil is already the world’s largest producer of iron
ore and leading exporter of beef, chicken, orange juice, sugar, coffee, and
tobacco. China has replaced the US as Brazil’s leading trade partner.
Brazilian’s contend that their size can match China’s dragon-like appetite and
they need Brazil to fulfill the Chinese needs. Batista, with Chinese
investment, with interests in mining, transportation, oil, and gas is building
a huge super port complex north of Rio that will accommodate the world’s
largest tankers and speed delivery of iron ore and other resources to Asia.
Commodities are not all that’s driving the Brazilian boom—Brazil has a
substantial manufacturing base and a large auto industry. The world’s third
largest aircraft manufacturer also resides in Brazil. Batista says that the one
thing Brazil needs more of is skilled labor—more engineers to which he now must
import from America. He indicates that Brazil is walking into a phase of almost
full employment with the creation of 1.5 million jobs in one year.

 Brazil has seen periods of
prosperity before–only to have the bubbles burst. Brazil spent billions in the
50s and 60s moving its capital to Savannah where it built the futuristic city
Brazilia. Brazil then borrowed billions more to develop the county’s interior.
Corruption then led to a financial collapse–2000 % inflation and the largest
financial rescue package in the history of the international monetary fund.
Lula, as President of Brazil, a metal worker with a 4th grade
education, receives much credit for turning the country around. Lula, in an
interview, indicates that Brazil was a capitalist country without capital. He
asserts that Brazil needed a metal worker with socialist views to bring more
money for banks, more sales for car companies, and more money to the workers.
When asked how? Lula says the success of an elected official is in the art of
doing what is obvious—what everyone knows needs to be done but some insist on
doing differently. Lula recognized the separation between the rich and poor of
Brazil. He gave the poor families a monthly stipend of $115 dollars just for
sending their kids to school and taking them to the doctors. Such an infusion
of cash helped lift 21 million out of poverty and into the lower middle class
which created an untapped market of first time buyers for refrigerators and
cars. Lula also encouraged growth and development by businesses but created
tight banking regulations to maintain conservative fiscal policies.

 Historically, Brazil had
ignored the festering slums overlooking Rio which was a staging area for street
crimes, drug gangs, but now gets the attention of military police. Brazil has
massive problems with infrastructure—traffic and roads. Ninety percent of the
roads remain unpaved and little public transportation exists in the cities. Delays
in building and renovation exist for the upcoming 2014 World Cup. Lula, in the
interview, indicates that Brazil will organize the most extraordinary World Cup
ever. He says that as he leaves office he told his people that they are not
second class citizens–we can get things done, and we can believe in ourselves.
People have started to believe—meaning that he expects his momentum to continue
for the country.

1.How is
Brazil a strategic competitor?  Explain

2.What is
Brazil’s strategy? Explain.

Is Brazil a
hypercompetitor? Explain

impact does Brazil have on the global economy? Explain

resources, capabilities, and core competencies does Brazil have? Explain

What are the stakeholders
associated with Brazil’s thriving economy? Explain their significance.

For each answer you should also add
what you learned from Chapter 1.

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