Challenges of trading minerals in brazil - Coursework Example

Case Analysis of Opportunities and Challenges of Trading Minerals in Brazil Opportunities Brazil is one of the leading mineral miners in the world. Investors have opportunities in investing in the mineral production. Markets for Brazil to export its minerals are mainly in Europe and North America. Countries like UK, France, Belgium, and US were among the top importers of the minerals. China also imports from Brazil (Brainard & Welch, 2012). The developed countries have opportunities to provide the production companies and the manufactured goods for the mineral because of their abundance in the labor force.

The metals and commodities that are shipped to overseas countries come back as completely manufactured products rather than in their concentrate form (Kogel & Trivedi, 2006). ChallengesThe use of the minerals in the production has led to slower economic growth in the country. The mineral export from Brazil grew by 4% from 1950 to 2003 (Geological Survey, 2008). The challenges Brazil face is that, the country exports its raw minerals and ends up importing the finished products. Developing countries do not have people with the knowledge to manufacture goods from the minerals, hence importing the products (Davies, 2009).

Another challenge is that one needs energy, labor, and capital in order to extract the mineral from the ground. The money that goes into extracting the minerals is a challenge to the country that is not economically stable (Geological Survey, 2011). It is bad for Brazil as it affects Brazil’s economic growth (Gereffi & Wyman, 2014). As the economic growth slows down, the country has to look for manufacturers or industries from other countries (World Bank & IMF, 2011). The country needs to train its people in order to have adequate labor force the industry needs.

The use of external labor forces to provide finished product proves to be a disadvantage to Brazil.ReferencesBrainard, L. & Welch, J. (2012). Brazil and China: Clouds on the Horizon. Journal of Americas Quarterly, 83(2), 33-37.Davis, G. A. (2009). Economic Research and Statistics Division - Trade in Mineral Resources. Retrieved on 5th January, 2010 from www.wto.org Geological Survey. (2008). Minerals Yearbook, 2008, V. 1, Metals and Minerals (Minerals Yearbook Volume 1: Metals and Minerals). New York: Government Publication Office.

Geological Survey. (2011). Minerals Yearbook, 2009, V. 3, Area Reports, International, Asia and the Pacific (Minerals Yearbook Volume. New York: Government Publication Office.Gereffi, G. & Wyman, DL. (2014). Manufacturing Miracles: Paths of Industrialization in Latin America and East America. New Jersey: Princeton University PressKogel, EJ. & Trivedi, NC. (2006). Industrial Minerals & Rocks: Commodities, Markets, and Uses. New York: SME Foundation.World Bank & International Monetary Fund (2011).

Global Monitoring Report 2011. Washington DC: World Bank Publications.