An Economic Concern In A South American Country Assignment

An Economic Concern In A South American Country - Assignment Example Over the past eight years, it experienced its single drop in GDP in the year 2009 when GDP fell by 0.6 percent. This was caused by the global recession that year. But it was one of the fastest to recover. In 2010, GDP grew by 7.5 percent and for 2011; it is expected to grow 5.6 percent. Moreover, for the next five years, barring any severe external shocks like another global recession, Brazil’s economy is expected to grow by 5.5 – 6 percent (EconomyWatch Content, 2010). Much of this growth comes from the services sector. It accounts for the biggest slice of total GDP with 67.5 percent. About 66 percent of the country’s labor force is employed in this sector (EconomyWatch Content, 2010). Major industries comprising this sector include telecommunications, energy, banking, commerce and computing services. In the field of energy, Brazil is one of the largest producers of hydroelectric power. It is also the ninth largest oil producer in the world. In the field of bank ing, large foreign banks have made huge investments in the country (EconomyWatch Content, 2010). The manufacturing industry is another large contributor to GDP with 26.4 percent of the total GDP pie and employs 14 percent of total labor force. Industries found in the country are automobile and parts, machinery and equipment, petrochemicals, computers, aircraft, textiles, steel, cement and consumer durables (EconomyWatch Content, 2010). Making up ten percent of total GDP is the export sector valued at USD 201.9 billion in 2010 (Gorn, n.d.). The bulk, or 60 percent, of its exports are manufactured and semi-manufactured goods. Commodities like oil, soy, coffee, iron ore and steel has also helped increase total exports. Lastly, Brazil is touted as the world’s largest producer of coffee, sugarcane, tropical fruits and orange juice, and has the largest cattle herd in the world (EconomyWatch Content, 2010). Other agricultural products are soybeans, tobacco, cocoa, corn, cotton and f orest products. Agriculture contributes 6.1 percent of GDP and employs 20 percent of the labor force (EconomyWatch Content, 2010). 4) What are 2–3 relationships between the economic concern you selected and that specific country's economy? Brazil’s growing economy has created a total of 14 million jobs since 2003 (EconomyWatch Content, 2010). Increases in GDP means that goods and services produced by businesses were being bought either by the local market or by the export market. And businesses have responded by increasing supply through the formation of new businesses or expansion of existing businesses. This therefore leads to higher employment rates. Thus, the unemployment rate has significantly gone down over the years. While unemployment increased from 7.9 percent in 2008 to 8.1 percent in 2009, this was mainly due to the slowdown in the global economy. However, in 2010 unemployment again dropped to 6.7 percent (EconomyWatch Content, 2010). The main benefit of hig her employment is higher incomes for the people in general. With higher incomes comes better quality of life. Comparing the per capita figures for 2009 and 2010, per capita income rose by 7.5 percent for the period (EconomyWatch Content, 2010). This has translated to higher demand for goods and services. With more money in people’s hands, generally, people’s tendency is to spend, which again redounds to the benefit of

The Globalisation of Logistics and Supply Chains Coursework

The Globalisation of Logistics and Supply Chains - Coursework Example This paper illustrates that every business needs to have an effective strategy that enables it to be strategically ready to deal with the effects of globalization. There are some scholars who believe that globalization only causes problems; contrastingly, some believe that it has both challenges and opportunities that businesses can exploit. Those who are anti-globalization are usually concerned that the phenomenon will cause economic catastrophe and that it should, therefore, be avoided. Anti-globalisation individuals look at globalization from a political point of view and argue that it will have a negative effect on economies around the world (because politics affect economies, so those who are against the globalization believe that globalization makes it easier for international politics affect economies negatively). However, globalization can also be examined from a business point of view. The 19th century was the dawn of globalization. According to Rugman and Collinson, if the right strategies are implemented, firms—and especially big firms, such as multinationals—can benefit a great deal from globalization. According to Worthington and Britton, the firms that have been able to develop an effective global strategy have also been able to advance their interests and increase their global market share while improving their sales and profit margins. A very good example of this is Coca-Cola, which was one of the first multinational firms to begin formulating and implementing a global business strategy even before the debate on globalization was ignited. Because of this, the company was able to come up with ways to take over the global soft drink market, and today, the firm’s products are available and adored all over the globe, even in the least developed regions. This has made Coca-Cola the leader in its industry. Market participation refers to the ways in which firms are able to participate in strategic markets around the world. The worl d consists of more than 200 countries, and even the most globalized firms have been unable to reach all these countries.