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Critically evaluate post-WWII trade policies, patterns and performances for One of the following BRICS countries: 1.USA 2.Braz - Essay Example

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An Evaluation of Brazil’s Post-WWII Trade Policies, Patterns, and Performances Brazil is one of the countries that took part in World War II. Even though the war had a negative impact on the economies of most of the countries that took part in the war, the opposite happened to Brazil…
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Critically evaluate post-WWII trade policies, patterns and performances for One of the following BRICS countries: 1.USA 2.Braz
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Critically evaluate post-WWII trade policies, patterns and performances for One of the following BRICS countries: 1.USA 2.Braz

Download file to see previous pages... The policies included high protection of imports, low concern for stability of prices, as well as government intervention in the economy among other raft of trade policies. The implementation of these trade policies made Brazil become the fastest growing economy after World War II. However, the changes in trade policies witnessed in the past decade have had a negative effect on the Brazilian economy. This follows the fact that these policies have seen the Brazilian economy decline, which has resulted in trade deficits, currency depreciation, and high inflation. The aim of this paper is to analyze the Brazilian post World War II trade policies, pattern, and performance. Brazil is one of the South American economic giants. It is one of the largest economies in South American region. The Brazilian economy depends very much on trade with other countries. Brazil export a variety of commodities, including coffee, sugar, soybeans, transport equipment, footwear, autos, and iron ore among others (Bacha, Bonelli and 2010, p. 12). These exports earn the country billions of dollars, which help it maintain balance of payment and economic growth. For instance, in 2012, Brazil exported products worth $242 billion. However, since Brazil is not self sufficient, its economy also depends on the goods it imports from it trade partners. Some of Brazils major import products include chemical products, electrical and chemical products, oil, machinery, and automotive parts. For instance, according to the 2012 estimates, Brazil imported goods worth $238.8 billion. This shows the extent to which trade is an important contributor to the Brazilian economy. As earlier noted, Brazil is one of the largest economies in South America. Brazil began registering economic growth since the beginning of 21st century. This follows effective trade policies formulated by the government at this time. At this time, Brazil maintained a strong balance of trade. This is because its exports far exceeded its import. However, the Brazilian economy significantly decline immediately the World War II began in 1939. The effects of the war saw the Brazil made it difficult for Brazil to access foreign capital. In addition, the war resulted in the loss of export market that Brazil depended on for export of its Products. For instance, Germany, Britain, and the U.S., which were some of Brazil’s major trading partners, were heavily involved in the war, effectively affecting its export markets. For instance, the Brazilian economy declined significantly from 1940 and 1942 when its GDP declined significantly (Considera and Pessoa 2012). However, unlike many other countries that took part in the war, the Brazil managed to recover from the effects of the war shortly after the decline. This follows the government’s proactive move to initiate monetary, fiscal and credit policies that helped stabilize the economy. In fact, the Brazilian economy registered a growth of 6.3% annually from 1943-to 1945 despite the ongoing war. The government measure also stimulated the industrial output, which rose by approximately 9.8% annually (Considera and Pessoa 2012). Even though Brazil experienced growth during the war, the country suffered from high inflation compounded by a decline in import caused by the ragging war. However, just after the end of the WW II, Brazil elected a new government into office in 1946 that embarked on initiating trade policies aimed at stimulating the country’ ...Download file to see next pagesRead More
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