Compare and Contrast of United States and Brazil - Essay Example

Running Head: COMPARE AND CONTRAST UNITED STATES AND BRAZIL Compare and Contrast United States and Brazil [The Writer’s Name] [The Name of the Institution] Compare and Contrast United States and Brazil Brazil's correct title is "The Federal Republic of Brazil" and its 26 states are administered from its capital, Brasilia, which was purpose built and now has a population of between 1 and 1.9 million people. However, Sao Paulo has 17 million inhabitants. The highest point in Brazil is Pico da Neblina which is 3014m (9,888 ft) above sea level. Brazil's main language is Portuguese and its main religion is Catholic Christianity. Brazilian society is a vibrant, diverse mix of cultures. Brazil's share of the Amazon basin, occupying half of the country, has a model equatorial climate. The 150-200cm (59-79 inches) of rain is spread throughout the year, although some periods are rather wetter than others according to the region. Temperatures are high, with almost no seasonal variation, but scarcely ever raise above 38’C (100’F) The Brazilian plateau, which occupies most of the rest of the country, has far greater temperature ranges. Rain falls mainly between October and April. However, the Northeast, the least productive region of Brazil, is very dry and in past years has been suffering from severe drought, which compounded its problems. (Daniel, 2002) The southern states have hot summers and cool winters, when frost may occur. The currency used on Brazil is the "Real". 1 real = 100 centavos. Brazil became independent of Portugal in 1822 giving the country the opportunity to develop to its best potential, and current borders were established. (Burns, 1993) Brazil has one of the world's major economies and is now the ninth wealthiest country in the world. Economic reforms in the 1990's have bought some stability to the country's finances. Reforms have included privatization and the opening up of its markets. During the 1960s and 1970s, GDP expanded by an average of 11% a year. At this time the country enjoyed massive industrial growth, but then the Boom and Bust pattern hit and Brazil went bust! It became the world's greatest debtor. The economy underwent major diversification and industrialization, and today Brazil is a significant producer of cars and computers. In fact, Brazil's car industry is acclaimed as being the success of the decade. Brazil's foreign trade environment divides into internal environment and external environment. Internal environment includes tariff and non-tariff trade barrier, subsidies, export financing programs, foreign trade zone and other trade policies. External environment mainly refer to the opportunities and threat of globalization and the global trade influence on Brazil. It is important to analyze the internal and external trade environment, overcoming current trade obstacle and maximize trade opportunities. Service like transportation, insurance, consulting, and banking account for about 20 percent of the value of the international trade which are growing faster than the trade of goods. The Brazilian imports of services has grown and developed in recent years. But Brazilian restrictive investment laws, legal restrictions on remittances and arbitrary application of regulations limit service exports to Brazil. Brazil is South America's largest economy and has potential market for service industries. Brazilian strict requirements for service importing prevent foreign market access for trade in some service industries. On the other hand, if we analyze US economy in the same perspective, it transpires that the United States economy is the powerhouse of the world, but it is not as strong as it can be. One issue that greatly affects the strength of the economy is immigration. Many uninformed men and women of America believe the opposite that illegal immigration strengthens the economy because immigrants often fill the lower wage job markets, ones that an average American would detest. But, this is the exact reason that illegal immigration hurts the economy, the low wages they earn. Illegal immigration acts as a subsidy to businesses that employ unskilled workers, holding down labor costs while taxpayers pick up the costs of providing services to a much larger low-income population. Like any subsidy, businesses who receive it want it to continue, but for the nation and economy as a whole, it's a bad deal. While, comparatively, during the past ten years Brazil has liberalized its trading regime in a substantial manner, but still maintains various barriers to trade of both a tariff and a non-tariff barrier nature. The Tariff and NTBs that hamper its products' access to the world's principal markets, such as the European Union, the United States and Japan, must be lifted to increase trade. Brazilian commercial banks, and subsidiaries of international banks are active in trade finance are active in trade finance. They can provide direct loans to exporter so that export can get bank financing of receivable. Now Brazilian commercial banks are becoming more aggressive in providing export financing for Brazilian firms, especially for small, medium or large Brazilian companies investing in capital goods, raw materials, infra-structure, energy or technology which substantially accelerate the export trade (Topik, 2004). Developed countries like US spend billions subsidizing their agricultural sector. By encouraging over-production and export dumping, these subsidies for agriculture products are driving down world prices at their lowest levels. It is damaging to smallholder farmers in Brazil countries and poses the unfair trade. Brazil is one of the few countries that traditionally import more from the United States than it exports to it. One important reason is that the United States has particularly ferocious protection on the goods that Brazil has a comparative advantage such as citrus and sugar. This unfair trade practice cost Brazil as much as $5 billion in lost exports every year. For example, in 1995 US violate WTO rules through subsidies and export credits for cotton and Soya production (Riordan, 1999). It artificially increase production and dumping exporting at price far below production cost. Brazil has been one of the largest competitive agricultural exporters in the world, whose production costs in several sectors are between 10 and 45 per cent lower than in the US and Europe. But the dumping of US surplus reduces the Brazil's export revenue. Brazil inflicts enormous damages in excess of $2bn to its cotton and Soya industries for depressed price by US (Maria, 1996). As for the Brazil, due to its natural ample land, particularly favorable climate, the world's largest fresh water reserves which is an essential condition for modern irrigated agriculture and considerable skillful farmers, it had the most efficient coffee and sugar industries which means Brazil has an absolute advantage in the production of agricultural products such as coffee and sugar. Therefore, Brazil should specialize in the production of coffee and sugar for which it has an absolute advantage and then trade sugar and coffee for textile in a cheap price produced by the English. That's the reason that Brazil remains the world's largest exporter of several agricultural products including coffee, orange juice and sugar. Similarly, the English can get all the coffee and sugar it needed at a lower cost by selling textile to Brazil and buying coffee and sugar in exchange. It indicates by specializing in the production of goods, Brazil can benefit by engaging in trade and global efficiency can increase through free trade. Brazil is a country of immense agricultural potential. With the autonomous trade liberalization and stable economic growth, both absolute advantage and comparative advantage of Brazil needs considerable resource inputs to and labor source particular skilled labor for goods production and packaging. Although Brazil has a huge population, some remote regions lack of skilled and semi-skilled workers to engage in agricultural and industry production. Therefore it is quite urgent for Brazil to improve educational system to train qualified workers to well prepare for future trade growth. On the other hand, although with the financial distribution that the U.S. gives to foreign countries they also help by making negotiations and peace treaties with countries that feud against one another. A feud should be handled by someone of a neutral status which is where the U.S. steps in. In some cases the President of the United States will make foreign visits, get together with the fighting countries, and settle agreements. In other cases disputes which cannot be solved with words and treaties sometimes leads to the point in where the U.S. will step in armed with soldiers to restore peace especially in situations like Bosnia and Kosovo. The Role that America plays results in a big impact and many ways in which foreign issues may be resolved. National Security and Military are two things that go hand in hand with the U.S. and is a big factor in power. Although not the greatest resolution sometimes, armed forces are a way to help the U.S. turn violent acts in countries to ones that are resolved, and sometimes only help in causing more tension between other countries. The armies that the U.S. puts in the countries are sometimes used as a way of containment, or to suppress threats within those areas. With Ambushes, weapons security threats, and the outbreak of war in countries the need for America to have a strong military and a lead role in National security helps America play an important role in foreign policy. America serves as a stepping stone to helping other nations move beyond problems and also to helping other nations have problem with America. Unilateralists believe in the process in where the United States would "go at it alone" and use their military to solve disputes without the aid of foreign countries. Isolationists believe that the United States should arm itself for Defense, and not entangle with alliances nor get involved in foreign affairs. Multilateralists believe that the U.S. should intermittently use its Military and diplomatic power along with the aide of other nations and Organizations. In today's society the U.S. seems more and more like a Unilateralism everyday. With the U.S. invading Iraq and making other moves with their military into other countries, a lot of times without support, they are taking the title of one. On the other hand, Brazil is still a relatively cheap destination for European and American tourists. Despite this, visitor numbers are declining, falling from 0.5% to 0.1% of the world market since 1970. Many visitors have been put off by the negative publicity generated by the conditions in the shantytowns and by Brazil's past human rights record. Housing shortages in Brazil mean that about 25 million people live in sprawling shantytowns, called favelas that surround the cities. Most of the homes are built by the families themselves, sometimes from waste materials but more often from wood, bricks and cement bought from builder's merchants. For the population who live in the favelas, 70% have no running water, 60% have no toilets or drains and 52% have no waste collection. The greatest problem for the US is high scale influx of illegal immigrants. Illegal immigration to the United States poses a severe barrier for the economy of the nation. Immigrants cost taxpayers billions of dollars every year, and effects don't stop as fiscal burdens. Hospitals have been shut down or forced to degrade health care service and schools have become overcrowded. The ideals of America draw the attention of foreigners in every country, but the number of immigrants to the United States has exceeded its practical limit of functionality. Women in Brazil have had the vote since 1934 and in 1993, Brazilians voted to retain directly elected presidents. In 1997 the constitution was changed to allow a president to run for re-election. Reformists want provisions to curb tax evasion, and were successful in 1995 in ending state monopolies and allowing foreign investment in telecommunications, oil, mining and shipping. Many also want to see changes in the electoral system in order to curb the increasing involvement of small parties in government. In October 2002, Luiz Inacio Lula da Silva, popularly known as Lula, won the elections and became president. A former shoeshine boy he will head Brazil's first left-wing government for more than 40 years. At his inauguration in January 2003, Lula promised to make major political and economical reforms and pledged to eradicate hunger. He also pledged to tackle corruption and Brazil's economic woes, improve education and create 10 million jobs. He plans to rid Brazil of its reputation for the biggest gap between rich and poor in the world. He did warn that this might take him longer than his initial 4-year term. Plans to develop nuclear weapons have now been abandoned by the military. Brazil's main aid donors are the USA and the EU. The World Bank provided $2 billion in 1996 for environmental, basic sanitation, road building and anti-poverty projects. As well as official aid, much comes from NGOs, mainly for environmental and housing projects. State schools enjoyed a good reputation until the 1950s, but have declined since then. Most middle-class parents now send their children to private schools. Brazil's three million street children have no schooling at all. Public degree courses work on credits, as in the USA. (Marshall, 2001) Of Brazil's 95 universities, 55 are administered by the state. Sao Paulo University is the most prestigious. Brazil is still a developing country despite its enormous agricultural/resource exports and its current attempts to repay its immense $250bn debt. (Palmer, 1999) There is such a massive divide between the rich and the poor, with the poor being in the majority that no developed country would have allowed this to remain for such a long time. A developed country would not have accrued such a high debt and would have used its natural resources to its advantage. There needs to be an equal distribution of the country's wealth. In order to address some of Brazil's problems, there needs to be a major re-allocation of land so that the very poor have a fighting chance of earning a decent living from working the land and selling the produce. There needs to be a massive campaign to re-educate the whole population of Brazil, which should address the need world-wide to stop destroying the rainforest, and all its natural plants. Brazil is no where near being a completely developed country. It is only just started developing. The President sometimes plays the role of the mediator and is the one to go to those other countries and speak with leading officials. The Presidents makes a lot of calls and is the main decision maker regarding most things having to do with foreign policy and national defense. With the use of other members of the executive branch in government such as Military, and foreign policy members, the President is given advice on a good decision. Although the President is the main decision maker Congress plays an important role in making decisions about trade, foreign aid, military spending, immigration and other issues which would arise both nationally. Congress has helped to pass bills which would involve the U.S. with other nations in an attempt to create good relations. (Bernard, 2002) The congress is given the power to declare war, and the spending of money. There are many ways in which Congress can use its powers to influence the President though and help with his decision making. In America, businesses are looking for a way to protect their copyright to make more money and stop piracy by letting the government crack down and infiltrate on the people who make that businesses product illegally. Interests groups have their say in how the government can help them in a foreign matter including the corporations supporting these interests groups. Social movements help Ethnic groups reform and come up with a way for the government to better aid their wants. With the production of the American-Israel Public Affairs Committee and African American groups in South America opposing apartheid, a gathering of people can also shape the way that congress and the president make decisions and also help shape their foreign policy. The Citizens of America should be able to voice their opinions and give the government their take on what is wrong or what they are doing wrong. Seeing how the government helps govern people in foreign nations it should not be fully up to them to make those decisions. The advice of the citizens can help the government to look at the way they shape foreign policies. With the Ongoing need of help in foreign nations and the United States being one of the world’s only Military superpowers and their advantages in solving disputes, they will always be able to interfere with foreign politics. The Executive branch, Congress, businesses, interests groups, and Social movements groups all make up parts of how we influence foreign policy and in the end shape the decisions we make. References Bernard Bailyn, The Ideological Origins of the American Revolution (Cambridge, Mass.: Harvard University Press, 2002). Burns E. Bradford. A History of Brazil, 3d ed. New York: Columbia University Daniel Touro Linger, 2002: Dangerous Encounters: Meanings of Violence in a Brazilian City Stanford, Calif.: Stanford University Press. Maria Regina Soares de Lima, “Brazil's Response to the New Regionalism, ” in Foreign Policy and Regionalism in the Americas, ed. Gordon Mace and Jean-Pierre Thérien (Boulder, Colo.: Lynne Rienner, 1996), 137-58. Marshall, Peter “The West and the Indians, 1756-1776,” in The Blackwell Encyclopedia of the American Revolution, Jack P. Greene and J.R. Pole, eds. (Oxford: Blackwell, 2001), 153-60. Palmer, R.R. 1999: The Age of Democratic Revolution: A Political History of Europe and America, 1760-1800, 2 vols. (Princeton: Princeton University Press). Press, 1993. Riordan Roett, ed., MERCOSUR: Regional Integration, World Markets (Boulder, Colo.: Lynne Rienner, 1999), 113. Topik Steven. 2004: The Political Economy of the Brazilian State, 1889-1930. Austin: University of Texas Press. Read More