The Production of Communication and Navigation Devices - Essay Example

?FUTURE OF BRAZILIAN ECONOMY COMPARED TO A DEVELOPED COUNTRY I.E. USA AND DEVELOPING COUNTRY I.E. INDIA Introduction The present paper aims to compare the Brazilian economy to that of the largest economic system i.e. the USA and the fast growing south Asian developing country India. The main reason behind making its comparison with these economies is to discover the similarities and dissimilarities in the tracks and directions of the economic systems under examination on the one hand, and strengths and weaknesses of the economies under analysis on the other. Brazil serves as one of the most distinguishing countries of the South American continent. Its distinctive characteristics are due to its splendid geo-strategic location, profusion of natural resources, vast area, cultivation of multiple crops in different seasons, large population and tremendous industrial and agricultural productions. “Composites industry in Brazil is the largest in Latin America and presently is witnessing good growth after some years of slowdown thanks to the recovery of the automotive industry and increased urbanization. Brazil traditionally has a strong manufacturing base and higher per capita income.” (Lucintel, 2008) The country has made slow but steady and stable progress in all fields of life during the last few years only. The authorities have established a comprehensive export promotion system in order to keep equilibrium between exports and imports, where imports never exceed than the export volume of the country to a dangerous extent. “The value of Brazil’s exports to the US fell by 34.1% to $20.1 billion in 2009. Brazil imported $26.2 billion worth of merchandise from the US in 2009, down 19% from $32.3 billion in 2008. Brazil’s trade deficit with the US tripled to $6.1 billion in 2009, from $1.8 billion in 2008.” (economywatch.com/) Consequently, her fast pace growth proves Brazilian economy as one of the fastest growing economies of the world at large in this age of perfect competition under free trade economic system. However, being the most populated country of the continent, Brazil had to make hard efforts in respect of winning the present economic position in the international arena. The political authorities of the country had to combat with several socioeconomic challenges including low per capita income, unequal distribution of wealth and resources, high crime rate, ethno-racial conflicts, always expanding unemployment rate, awkward clutches of poverty, political instability, and inadequate allocation of human and natural resources etc. Somehow, the sincere and dedicated efforts, made by the Brazilian leadership and the masses jointly, have turned out to be fruitful in earning respectable status for the national economy. “Blessed with the abundant natural resources, Brazil has become the most powerful country in South America in economic terms and thus is leading the other countries of South America. With large and growing agricultural, mining, manufacturing and service sectors, Brazil economy ranks highest among all the South American countries and it has also acquired a strong position in global economy.” (mapoftheworld.com) Currently, Brazil’s economy is at eighth position in world ranking with GDP $ 2.023 trillion, and hence she is the only South American country, whose name is got place in the list of top ten economies of the world. The development made by the country is not confined to one specific area or zone only. On the contrary, the Brazilian economy has showed an upward trend in all fields and departments including trade, commerce, agriculture, industrialization, technological advancement and infrastructure. As a result, the salaries and wages of white collar and blue collar workers have also witnessed tremendous boost along with the high increase in the profit volume of the industrialists and investors. Thus, the analysts and financial experts are taking both business and salary class to climb the ladder of prosperity and financial stability. Before embarking upon the topic under study, it would be advisable to have a glance at the US and Indian economies. The USA has been the world strategic and economic super power since 1945 onward in the aftermath of WWII. The country particularly assumed the political and economic leadership of the entire globe in the wake of the disintegration of Soviet Union in 1990. The US economy is the greatest in the entire world with the estimated GDP 14.3 trillion US dollars. The economy’s strength could be estimated by looking into the very reality that the US currency (US$) is the most commonly applied currency exchange currency, which is also used to make comparison of different currencies of the world. Though the USA spends $ 664 billion on it defense budget, and has been involved into wars and conflicts with several countries of the world, yet she is still successful in maintaining its inflation rate and financial deficits even under most unfavorable circumstances the country underwent after 9/11 catastrophe. “For Fiscal Year (FY) 2011, the President requested $548.9 billion for the Department of Defense Base Budget. This was $15 billion more than the $533.7 billion Department of Defense Base Budget request for FY 2010. Total defense spending requested for FY 2011 was $895 billion.” (About.com) The USA exports agricultural products, computer technology equipments, information, communication and technological equipments, automobiles, medicines and others, while her imports include few crops, medicines and IT products from China, Japan and Germany. Though, the USA has developed very cordial economic and diplomatic relationships with the western and European world and Australia, she always looks engaged in imposing and enforcing her technology, culture, policies and strategic schemes on all poor and developing states of the world. Thus, she has inflicted 17th century imperialism on the third world countries of Asia and Africa just for maintaining her domination over the world economic activities. Situated in the south Asian sub-continent, the Republic of India is the second most populous and sixth largest country of the world. With the estimated population 1.2 billion and containing the area 32, 87, 240 km, India is also stated as the largest republic of the globe as the number of its parliament is highest in the world. Being a vast country, India shares its boundaries with many countries. India has been gifted with lots of natural resources and beauties. It is situated in the highest mountainous series of the world, where both the Everest and K-2 are located in the neighborhood of the country. In addition, several rivers flow in the country making India fertile and productive. India is a multicultural land, and followers of many religions inhabit in the country. India is viewed as the paradise for tourism, for its splendid vales and natural beauties. Kashmir is the most alluring area of the country, which is visited by millions of tourist every year. In addition Taj Mahal is also located in India, which has been declared as one of the Seven Wonders of the World. India’s GDP has been estimated to be $ 1.43 trillion, which makes it the eleventh largest economy of the world. India also retains its low-cost advantage and is among the most financially attractive locations when viewed in combination with the business environment it offers and the availability of skilled people, according to global management consultancy AT Kearney. (Shivapriya, 2009) Being a strong ally of Russia, India adopted socialism as its economic system. But gradually, it assumed free market system and capitalism as its economic system. Thus, all the three countries, including the USA, Brazil and India, observe capitalistic economic system. Like the US and Brazil, India also maintains large business share in the international markets, as her products are welcomed in every part of the globe. She has entered in so many multilateral trade and commerce contracts with western and eastern world including the USA, Europe, the Middle East, Australia, China and African countries. However, India’s business volume is far shorter than that of Brazil, as Brazil contains tremendous business volume and also imports different commodities for its population. The USA and India have made remarkable achievements in the fields of IT and communication, as they are enjoying the status of first and second largest exporters of IT products in the world respectively. Unlike Brazil, the USA and India also bear the heavy burden of atomic energy. The USA and India conducted their nuclear tests in August 1945 and May 1974 respectively. However, like the USA and India, Brazil also maintains a huge army, and carries out plans to get latest equipments for her strategic schemes. Though poverty haunts a large part of Brazil, yet she is making a sure headway to combat with the poverty, unemployment, corruption, nepotism and lawlessness menaces. The unemployment rate in the USA and India is touching 9%, which is really jeopardizing for both these economies. High unemployment rate also indicates the future financial instability and socioeconomic chaos. However, the unemployment rate in Brazil is far lesser than those of the USA and India. Similarly, external and internal debts are also lowest in Brazil while making comparison of the three economies under estimation. Both America and India have developed enmity and conflicts with the rival countries. Consequently, they have to spend a huge amount of their budgets on defense and strategic measures. On the other hand, being a peaceful state of the world, Brazil seldom enters into conflict with neighboring countries. Thus, she has to allocate comparatively lesser percentage of its total budget on defense, which provides her a vast opportunity in respect of improving the lot of her masses. In the light of these few facts and figures, the future prospects of Brazilian economic system are extremely bright and encouraging, which are sure to make the economy as one of the most powerful financial system of the globe for the future years to come. Though the world has been facing economic recession in the aftermath of 9/11 catastrophe, yet the Brazilian economy still witnesses significant boost in all business dimensions. On the one side, she has devised practical schemes for the expansion of her trade and commerce ties with different countries of the world, and on the other side, she has successfully made access to international markets, where her products are being welcomed with great admiration. The country also applies the principle of dumping in international markets, so that her products could find their certain way in all markets of the globe at large. “Brazil was the first Latin American country to recover from the global financial crisis in 2009. But the country's future prospects are growing even brighter. Currently, Brazil is gearing up for its upcoming step on the global stage -- the 2014 World Cup soccer championship and the 2016 Summer Olympic Games. Both of these events combined could add 3% to 4% GDP growth.” (Hsu, 2010) The current political leadership of the country is determined to cut short unnecessary expenditures at state level in order to allocate the extra money in nation building programs. Additionally, it will also be helpful in the increase of foreign exchange rates and national reserves as well. Being an agricultural country, Brazil has always laid stress on the growth of agricultural sector. Somehow, it neglects the urgent need of the expansion of agricultural products to the Middle East. The researches reveal the very fact that Saudi Arabia, Syria and Iraq are undergoing water shortage problem, which will turn them unable to produce crops in their fields. The Brazilian analysts should keep this factor in mind, and should take necessary steps towards increasing trade with the Middle East countries, as a the region carries a large number of consumers in it because of the fast pace of population growth in the entire region. Furthermore, Brazilian government is also paying due heed to the production of communication and navigation devices in order to provide these products against economical rates in the international market. The Chinese products are the greatest challenge for the Brazilian economy, as China offers its products at cheap price. However, Brazil can combat with this very challenge by improving the quality of her product, so that the people could buy and consume the same on the basis of their high quality. Thus, Brazil witnesses bright prospects in respect of the growth and expansion of her economy for the future years to come. REFERENCES Amadeo, Kimberly FY 2011 “Military Budget” About.com Guide http://useconomy.about.com/od/usfederalbudget/p/military_budget.htm Hsu, Robert “Brazil: Stepping onto the Global Stage” Investor Place Asia 2010 http://asia.investorplace.com/top-emerging-markets/brazil/2010/stepping_onto_world_stage_0110.html Brazil Trade, Exports and Imports http://www.economywatch.com/world_economy/brazil/export-import.html Brazilian Economy http://www.mapsofworld.com/south-america/economy/brazil.html Research and Market Broacher Growth Opportunities in Brazilian Composites Market 2008-2013: Trend, Forecast and Competitive Dynamics http://researchandmarkets.net/reports/696763/growth_opportunities_in_brazilian_composites.pdf http://www.businessweek.com/globalbiz/content/jul2009/gb20090710_974200.htm http://www.tourindia.com/htm/homepage.htm Indian Entrepreneurs (Retrieved from http://www.iloveindia.com/indian-heroes/indian-entrepreneurs.html) Read More