Actual brazilian economy analysis

Actual Brazilian Economy Analysis
Raphael Lima Rega
ECON 5311-01
Mr. Ed McClelland
Dallas Baptist University

Introduction In the past years the importance of Brazil's economy has changed drastically, and now has become a big promise to the future; however, is that really going to happen? The dream of became a large in important economy in the future world's economy is really going to happen? Is Brazil really ready for this big change? How the Brazil's economy is being prepared for it? This paper will discuss the challenges that Brazil has now and be ready for the future. Moreover, will introduce a few aspects of the Brazilian economy history that affected the way that Brazil deal with the own economy.
History of Brazilian Economic To be able to understand why Brazil's economy is the way that it is and why Brazil reacts to economy events the way that reacts, it is necessary to know what events and facts happened in the Brazilian history that build and affected their economy. The Brazilian history started way different that the other modern developed countries that were colonies. The difference is in the importance and function that the country had to Portugal. Brazil had an exploitation colonization, were the importance and function of the colony was to provide natural resources and crops that Portugal could not produce. Another important fact was that the cost of production should be lower, as well the investment. Furthermore, in the beginning of Brazil's history; Portugal was looking for to dominate the sugar market, one of the most lucrative commodities at that time. That was the Portuguese's strategic until the end of the colonization; commodity over commodity, everything that was lucrative and Portugal could plant or extract it was did (Furtado). Then it was born the Brazilian Economy, an economy based in exporting commodities and importing goods and services, extremely dependent from external economies and investments, and a very weak internal