Why have policies of trade liberalisation been applied to Brazil

There are numerous aspects resulting in policies of trade liberalisation being applied to Brazil. The main driving forces behind these policies are outlined below focussing in particular on government intervention, interest groups and election campaigns. With a population of almost 200 million, and with more than 25% of its population surviving on under $2 USD per day, a sustainable path of economic growth remains the central issue surrounding the Brazilian government. In the world market, Brazil is both the 23rd largest exporter and the 23rd largest importer of merchandise worldwide (CIA, 2012).

However, this has not always been the case. In recent years, Brazil has begun the transition from a protectionist developing country to a fully developed one. It is not quite there despite recently overtaking the United Kingdom and becoming the world’s sixth largest economy it is still in the middle stage of development, known as an emerging market (Williams, S. , 2011). To begin with government intervention must be looked at in detail as it has long been a characteristic of the Brazilian economy.

Dating back to colonial times, the prohibition of trade between Brazil and other countries was one of the primary means of control imposed by Portugal. After gaining independence in 1822, Brazil opened its ports, and international trade began (Butler, R. , 1997). Up until World War I, prevalent trade regulation continued with tariffs accounting for more than half of total government revenue (Hudson, R. A. , 1998 p233). The 1906 coffee price support plan was another means of government intervention. It was a complex regime which endeavoured to exploit Brazil’s monopolistic position in the world coffee market.

This plan, known as “valorisation” was implemented in February of 1906 and is a prime example of the highly influential stance taken by the coffee production companies towards federal politics. Seemingly, the valorisation plan was the result of a combination of lobbying by the coffee growers with the resulting government intervention manipulating market forces (Abreu, M. D. P. , 1997 p64). As production of coffee beans increased, this caused the world price of coffee to decrease, resulting from an excess supply of the commodity.

In order to protect the coffee industry and in particular the interests of the coffee growers, the Brazilian government established a means of exchange rate fixing, which was implemented by governmental purchases of surplus coffee beans. The government would then wait for the price to exceed a certain level before selling these surpluses at the higher price on the international market. The valorisation scheme worked in the short-run as it temporarily raised the commodity price level of coffee, which helped support the continued expansion of the coffee industry.

Initially it was successful from both the perspective of the coffee growers and the Brazilian government, however the resulting excess supply intensified the impact of an inevitable bust (Fridell, G. , 2007 p118-119). The crash in coffee prices signalled an inward turn, which promoted a growing industrial economy. In the following years restrictive trade policies were implemented deliberately to promote industrial development, leading to Brazil becoming a closed economy (Butler, R. , 1997).

The protection of infant industries coupled with import substitution formed a solid policy framework not only in Brazil, but also in Latin America as a whole. Up until 1979 import bans, quantitative controls and reserved market shares were the main instruments used by policy makers. The “lei do similar nacional” or “law of similar domestic production” granted market shares for Brazilian firms and imposed prohibitive tariffs in any sector where domestic production was in competition (Rossi Jr. , J. , 1999 p2). This effectively allowed domestic producers a monopoly on any given market as imports of substitutive goods were not allowed.

After 1979 previous quantitative controls were largely disbanded as the main instrument of trade policy. In the following years, a further decline in Brazil’s external payment position prompted policy makers to seek alternative means in order to restore external balance. The primary means for achieving this was an adjustment in the exchange rate. Strict controls on trade remained in place and the 1982 Mexican debt crisis caused a knock-on effect on voluntary foreign lending, which consequently resulted in significant effects on trade policy.

The Central Bank centralised all foreign-exchange transactions, which further strengthened the control of imports to Brazil. A negative list, being a collection of items whose import is suspended, was considerably expanded; causing import financing to become further restricted (Butler, R. , 1997). During the 1980s, a rapid external account adjustment was the result of a fall in domestic demand combined with stricter import controls and real depreciation. It was during this time that another price-stabilisation attempt was implemented, known as the Bresser Plan.

Launched by the new finance minister, Luiz Carlos Bresser Pereira in June 1987, it was a strategy adopted by the Brazilian government in order to maintain power. The Bresser Plan appealed to the ‘median voter’ by avoiding the use of external economic policy as an instrument for internal stabilisation (Butler, R. , 1997). This allowed Brazil to go back to its previously successful policy of frequently making small devaluations in line with domestic inflation. Not only that, however, it also improved the trade balance, which led to a fall in domestic production resulting in a current-account balance by the end of 1987.

The improvement in the position of external payments allowed some modest trade liberalisation, starting with the reduction of the negative list. The financing for imports was relaxed, and the end of 1988 saw an additional plan announced to promote the expansion of imports. (Hudson, R. A. , 1998). However, the end of the Sarney government in 1990 saw inflation rates bordering on hyperinflation. Despite the trade balance falling by two thirds in the following year, policy makers were directly focused on internal stabilisation, with trade policy reforms being a secondary objective.

Collor de Mello succeeded Sarney, and during his election campaign, he successfully portrayed his opposition of interventionist bureaucracy. By applying this vote-maximising tactic, he successfully gained power. Attacks on corruption, and highly paid officials formed the basis of his election campaign while heavily emphasising his views on deregulation and greater openness in terms of international trade. Further reforms produced a more simplified tariff system by consolidating import rules and therefore reducing the number of agencies involved in the trade approval process.

While import licences were not abolished altogether, approval was a routine operation with licences being issued within one working week (Butler, R. , 1997). With a greater level of automaticity government bureaucracy was reduced, therefore preventing non-elected officials acting out of personal interest. The 1992 exemption of certain taxes on raw materials, manufactured components destined for export helped simplify procedures relating to the needed remittances of foreign currencies.

The further introduction of the Mercosur common external tariff in 1995 led to even more reductions in trade barriers (Thirlwall, A. P. , 2008 p235). In conclusion, it can be seen that while liberalised trade policies were introduced throughout the twentieth century, they were only modest compared to those of other Latin American countries. The coffee valorisation scheme is a form of government intervention as a result of pressure from interest groups, which in this case are the coffee growers.

While government intervention was initially successful, the exploitation of Brazil’s monopolistic position in the world coffee market resulted in a global over supply. This in turn caused in a global price crash, which not only affected the government but also the coffee growers. We can see here a form of government failure as the intervention in the coffee market failed to produce a desirable outcome. It was only at the end of the twentieth century when Brazil finally implemented a policy where all import licenses, prohibitions and special regulations were replaced by a system of tariffs. Related article: Brazil gender roles in business

This is the largest collection of trade liberalisation policies and was fundamentally the result of an election campaign targeting bureaucrats in order to provide a fairer market for the Brazilian people. It appears that it was simply a vote-maximising scheme in which to appeal to the majority of voters, however since the 1990s, Brazil has advanced rapidly and is now a major player amongst some of the world’s most successful economies. It has already overtaken the United Kingdom in terms of economic power and, despite the global downturn since 2008, Brazil’s economy is still growing.

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My writing ritual

The writing process Is new to me since Vie been out of school for 2 plus years. I am a new writer thus I am learning new writing techniques that produces a more unique personalized writing for me. The new technique I have learned Is writing rituals which are a detailed act or series of acts carried out by an Individual to relieve anxiety or to forestall the development of anxiety. Also (psycho) any repetitive behavior, such as hand-washing, performed by a person with a compulsive personality disorder.

These steps will explain its self and it’ll show how it can also be plied to your everyday life. The rituals I use help to relieve stress when writing and is very important doing so. Although the steps I take are very tedious and well- structured, I put myself in a mind to produce well papers that represent not only me as a student but as a creative mouth piece generating an art. In order to succeed with a well-grounded paper I use these steps that I will explain in detail in following pages. Introduction As for me to begin my process to write, I prepare my mind, body, and soul.

Whether, for homework, a speech, guidelines, or announcements, I have to prepare yeses or I won’t be able to focus and be easily distracted. I’ve noticed my preparations have made my writing extremely successful. These steps will explain it and it’ll show how it can also be applied to your everyday life. Step by Step Beginning my days at 6 A. M. Get dressed, brush my teeth and wash my face. Then, I go downstairs to make coffee. I like everything to be clean and organized so I clean the kitchen, put all the clean dishes away (from the day before) and fix the couch.

I make my coffee and go back upstairs. I play Soft Charlatans music to set the atmosphere. So I’m not so tense while I’m writing, I use the yoga ball to stretch my muscles. Then, I set up my computer, take out my notes that Ill need, and look at the assignments that are due. If I get overwhelmed, I like to go for a walk and think about the assignment. I ask myself how I can complete it successfully, have I ever done this type of assignment before, and can it be applied to reality? I also do research to further my understanding and to make sure I have the right ideas for the assignment.

Before I get started, I like to get a cold glass of water, some fruit, rackets, or peanuts so I wont lose my focus. Think of this as food for thought! And these are my steps to succeed. With the writing rituals I listed above show what I use to create assignments and how important they are to me producing a well-organized paper. I like to succeed; I take my education very seriously so this exercise has shown me that I’m going down the right path. During this course, Vie learned in order to succeed; I have to take extra steps to accomplish my goals. I think this course has helped me improve in all aspects of my life.

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Use This Green Beret Morning Routine to Feel Energized All Day

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Are you exhausted? I feel exhausted just typing that question. Luckily, former Green Beret Sergeant Major (retired) shared with Entrepreneur a military-tested plan of attack that boosts energy, productivity and sanity.

“Military morning routines prepare us for combat, but they also transfer well to the office, without a doubt,” Erickson told me.

I must admit I was terrified he was going to insist on cutting out coffee when we spoke. Read on to find out if my fears were justified.

1. Get your blood pumping.

“In the , you always see members of the military out in the morning running in formation. Yeah, we do that in real life. Why? We do it first thing in the morning because you want to reach and sustain that high target heart rate. It’s not only good for the body, but it boosts your mental awareness. And it clears all of the tequila out of your blood stream from the prior night. Or martinis for those gentle types out there.”

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2. No, seriously, get your blood pumping.

“Vigorous morning training also prepares the body for stress. The body reacts to stress in different ways, and one of those ways is that your heart rate can skyrocket. So by , you’re preparing your heart to physically handle the stress of the boardroom. Even when we spend a day on the shooting range, we also end a session with a stress test. Get that heart rate up.”

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3. Some is better than none.

“If you don’t have time to go running before you get in your car or on that train every morning, doing some exercise is better than none. Just doing 100 jumping jacks and five minutes of will make a difference. You’ve got to make it part of your routine.”

4. Just say yes to coffee.

“The military has done tests on every kind of stimulant and depressant out there and they have found that caffeine really doesn’t have any downside. In terms of early morning missions or late night guard posts, caffeine has proven to be the best way to keep alert without adverse side effects. So getting that cup of Joe in the morning will safely and efficiently wake you up and get your brain going.

“If Starbucks prices are making you want to quit , I’d advise you not to do it before an important meeting. You will get a crazy withdrawal headache. I need my caffeine and always have a backup plan. When I’d take my sniper team up on a mountain in Afghanistan, you couldn’t make a cup of coffee because you’d be able to smell that coffee for miles away. So I had a bag of chocolate-covered espresso beans I carried with me to get my fix without letting the enemy know I was coming.”

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5. Establish a battle rhythm.

“That’s military speak for writing out your for the day. Have a list of your objectives, then draw out a plan for how you can achieve them. Do this every day, and you will start to see patterns. That’s how you gain efficiency. Start with your goal and backward plan on how to get to it.

“If I need to get on a plane tomorrow morning at 6 a.m., I need to stop drinking tequila an hour earlier tonight. I’m kidding, but this is how you find that a sustainable battle rhythm. Rather than stumbling through the day from one task to another, you have an established schedule. And make sure that schedule includes exercise! If you leave out exercise, you might as well bow like a sheep. You’ll be like all the other soft people out there. If you want to win on the battlefield, you’ve got to be disciplined.”

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6. Make lists and lists and lists.      

“Make lists of everything you need to do every day, every week, every month. And go over those lists every morning. This helps you your days and eventually those lists of tasks turn into lists of accomplishments. Even if you only accomplish one thing a day, at the end of the month, you’ve completed 30 things you set out to do. Those small things add up and that provides a great mental boost that energizes you to do more.”

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7. Put on your grown-up pants.

“How you dress and take care of yourself is vitally important to conquering your day. Even in combat zones, you’ll see the soldiers have clean-shaven faces. Special Ops guys might grow beards, but that’s just to blend in with the locals. But their uniforms and equipment are in perfect order, clean and correct. Even in Ranger School, where you live like an animal, hygiene is harped on.

“They did studies that showed that just brushing your teeth will raise your morale 13 percent. So you get up in the morning, you’re all pissed off, you know you have a terrible day ahead of you, but take the time to present yourself as a true professional. When you know that all of your shit is correct, that gives you a big boost of .”

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8. Turn off your brain.

“Getting enough sounds obvious, but it is something many of us struggle with. The problem with taking drugs like Benadryl or stronger stuff is that yes, they will knock you out, but you won’t get any REM. That’s completely worthless sleep. You might as well just be unconscious.

“If you can’t sleep, get up and exercise, wear yourself out. If you’re mentally strapped, there are many mental games that you can do that are relaxing. People talk about counting sheep, I assemble and disassemble guns. I lay there and mentally take apart a firearm step by step. Now I’m not sure that would work for everyone out there, but the point is that I force my brain to concentrate on a particular task and in doing so, take my attention off what is stressing me out.”

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9. If you can’t sleep now, sleep tomorrow

“The military did studies and eight hours of sleep is optimal. But the military pushes itself a lot and guys often go for long stretches without getting much sleep at all. Just like a lot of entrepreneurs. If you get two hours of sleep for three days straight, you’re a zombie. But what these studies found is that if a guy gets little or no sleep for days, but then is allowed to rack out for 16 hours straight, he can regain all of that sleep that he lost. So turn off your phone, get those zzz’s and .”

Erickson tests tactical gear on his site . Follow him at .

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Fourthly, the threats of substitute product is very likely to be high as coffee, juices, soft drinks, tea and many more can be easily substituted. In the mean time, consumers can also choose to go to pubs and bars and spend their time or to meet up to substituted struck. Lastly, the threat of competitor […]

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