International Enviornment Exam Grid.all Countries Done
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Transcript of International Enviornment Exam Grid.all Countries Done
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7/28/2019 International Enviornment Exam Grid.all Countries Done
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Factor Detail
Details Rating
Economic Headline
Economy is based on 1) exports and 2) FDI. 2001 WTO
accession catalyzed 3 major reforms - facilitating foreign
enterprise, promoting free trade, and improving legal
transparency and predictablity (see write up, p1)- whichspurred strong growth; now 2nd largest economy after US
PosHigh growth: Forecas
2030
GDP Size, breakdown by segment $7.2T (2nd largest, after US) Growth Rate highest in the
world: 8-9% prior to WTO accession, 10-11% after)Pos
2002: $504B, 2011: $
consumption: 60%, H
Labor productivityAnnual growth rate
(GDP/ppp)
Highest growth rate in world (1995-2005 average 8.43%
annual growth (US: 2.8%)); spurred by migration from rural
to urban areas, FDI brought new technologies and
management practices, massive infrastructure
investments, increased access to international markets
incentivized entreprenuership and investment
PosLow growth rate, ham
workforce (1995-200
Leading industriesGeneral manufactoring (44% of GDP); technology
manufactoring, construction, powerPos
Primarily agricultural
industries; airplanes,
and telecom equipme
them back to commo
Fiscal policyBudget: balanced, surplus,
deficit?2011: deficit (1.1% of GDP) Nuetral
With permanent bud
debt almost 60% of G
borrow domestically,
Exchange rate
controls
Rate? Float freely or
manage?
Fixed to the dollar; large FDI triggered by WTO accession
caused exchange rate to soar; as a result, government
established the China Investment Group ($200B) to invest
in foreign equities. (High rate improved their purchasing
power of foreign assets; however, puts a drag on their
export-based economy
(Mostly) Pos
Late 1990s: Asian cris
Led to 33% crash of B
reserves due to fixed
It remains high, whic
Inflation rate (rate, how
control?)General ly well-controlled inflation rate (3.3% in 2011) Pos
History of high inflati
and continued for ma
Interst rates Generally well-controlled interest rate (6.2% in 2011) Pos Rose interest rates ("
Trade policyTarffs, quotas, and other
restrictive agreements
Promoted export focused economy. WTO reforms
brought about 27% and 24% annual growth in exports and
imports, respectively. Trade surplus grew to $360B by
2010 - China ran a trade deficit with Asian countries but
large surpluses with EU, Japan and US
Pos
Historically (as of 196
dramtically reduced t
international players
for international trad
round, US cotton disp
Nationalization v.s
privatization
Strong state ownership of businesses (Sharp decline over
years to 48% in 2002)Mixed Strong state ownersh
Due to WTO acession: Strong reliance on FDI (FDI exploded
Monetary Policy
Ratings = Postive (+), Negative (-), Mix, NuetralCountry Comparison
China
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SubsidiesGovernment subsidize? If so,
what?
Strong govt subsidies, mostly in SEZs - been highly
effective in attracting business investmentPos
High industry subsidie
owned companiess, w
Economic
regulation
As viewed through recent
global financial crisis
2008: Caused value of Chinese exports and imports to
reverse which shrank ecoomy from 25% growth to -1.65%.
Swift govt intervention was very successful: central bank
cut interest rates, halted currency appreciation, increased
export tax rebate on labor-intensive goods to supportexports. Also invested larger stimulus package than US
and EU, resulting in expanded consumer spending, rapid
investment growth, strengthened agriculture, and by 2009
GDP grew by 8.7%.
Pos
While policies enacte
aggregate demand, t
questionable. Jorge G
Gerdau, explained: L
consumption and get
with our level of savin
problem is cultural; w
themselves out, [but]
years. We do not hav
2010, Armnio Fraga,
warned, Brazils infra
saving and investing e
Natural resources Abundance
Limited abundance - requires signficant importing,
particularly from Brazil, to fuel its export-led growth
strategy and growth in domestic consumption
Neg Strong abundance an
Relationshp with
international
institutions
IMF, WTO, etc WTO accession sparked economic boom PosWTO win againt US co
leader of LATAM; tryi
Government One line headline
High government role in leading growth through
authoritarain control; quickly adoption capitalist
fundamentals; been highly effective in driving growth, but
at high social cost
Mixed
High government role
owned enterprises an
research.
Structure Socialist, democratic, etcSingle party authoritarian republic; communist with
capitalist elements.Neg
From military regime
in 1988). Known for
Protection IP, contracts Extremely weak IP protection, corruption NegWeak IP protection -s
infringement (particu
Security Policing, army, etc Low crime rate; largest military in Asia, #3 in world Pos High crime rate, stron
Backs risk
Back extraordinary risk (e.g.
unemployment insurance,retirment pensions, etc)?
Significant state control assumes risk across several areas,
though a number of services are limited (e.g. pension,healthcare)
Mixed
Backs a variety of ent
unemployment, retir
NGOs Role, degree of reliance
Historically immature sector is now growing, though
government censorship continues to challenge their
progress.
MixedHigh reliance on NGO
degree of NGO influe
International
strategy
Vying to become #1 global superpower. Working with
WTO and other global instutions to improve positioning.
Encouarging high FDI as cornertone of economic
development (mostlylow cost manufactoring). Investingheavily in: a) oversease assets to secure global supply
chain due to high resource importation needs and b)
military to solidify regional and global power
Pos
Aggressively position
developing countriesrelationships with int
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Institutional One line headlineCovered in other sections. Home ownershiop purchased
with personal/family savingsDo you think this sect
How deveoped are its
institutions?
Leading areas
Deficits
How developed is itsinfrastructure?
Improving at an accelerated rate due to high investment,
particularly in SEZs. Rapidly reducing transaction costs forbusiness, though leading to significant envrionment
challenges. Good ports.
Pos Weak infrastructure le
Leading areas Energy (mostly coal), transportation, communications PosPoor all around, thoug
13B more on infrastru
Telecom is lagging but
Deficits Rural, interior infastructure Neg Domestic transportati
Social One line headline
Rising middle class, but enormous inequalities remain
leading to increased tension. Aging population and slow
population growth (due to one child policy) pose
signficant challenges
Mix Rising middle class (30
GINI Coefficient Baseline: US is .477 High income inequality: .48 Neg High income inequalit
WorkforceLevel of skill, blue vs. white
collarLow skilled, still mostly blue collar Neg Low skilled, still mostl
Consumer basePurchasing power, degree of
consumerism
Growing middle and uppper class with strong consumer
culture in urban areas. High savings rate due to concern
for future - this will drag consumption
PosGrowing middle and u
minimum wage, good
Social
strife/conflictReligious, racial, etc
Strong economic disparity, particulary between rich
coastal urban and poor rural farming interior. Perceived
lack of gov't effort to address this leading to significant
social tension - when will the country "snap"?
NegStrong economic dispa
Generous entitlement
EntitlementsQuality of healthcare,
education, retirment, etc
Outdated Hukuo system controlled population movement
to maintain farming population. Skills, capital and
education were required to move to leave farming to
affluent cities. This outdated system is limiting education,
retirment, housing and healthcare access. Economic
reforms led to healthcare price inflation, further
decreasing access and affordability. Govt pensions are
inadequate, with great disparity between urban and rural.
Neg
Poor education; gener
unsustainable. Infring
meds (good from a he
Infrastructure
Maturation of
institutions
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Overall favorability High favorabilty for many businesses High growth potential, but has a num
Business Risk/Challenges
Lack of IP protection, unskilled workforce, poor GINI score
and human rights could lead to social unrest, high state
involvement (e.g. media restrictions), lack of natural
resources, limited access to resources in several key areas
(e.g. business analysis, architecture) (ranked 91/185
easiest place to start a business)
Hi cost of capital and interest rates, p
exports), weak IP protection, regulatio
cost of business, and lower skilled wo
of buerocracy and complex tax code:
starting a new business
Business
Opportunities/Strengths
Signficant incentives for FDI (e.g. SEZs), cheap labor, weak
regulations (this has an eventual downside), high
subsidies; strong work ethics of the workforce, well
organized / highly disciplined organizations, workforce
desire to succeed (learning and becoming stronger
professionally rather than pure career move)
Most interest is based on anticipation
growing economy (now 10th largest, s
resources, agriculture, large populatio
funding and other incentives all pluse
industrial sector in Americas, and clos
one of their leading industries (see ab
China
Learnings: What does each country teach us?
Worth Doing Business?
Open your markets: Key to catalyzing strong GDP growth can be to focus on an export economy and foreign investment
Avoid foreign debt
If lacking domestic innovation, import it through FDI
Trade offs: Policies enabling strong economic growth can come at a social cost, which can backfire. Chinas policies are sending
contrast, Brazil makes heavy social investments but at a high economic cost (note: interestingly, Brazil nonetheless has a higher G
If lacking natural resources, build strong trade relations and purchase foreign assets (e.g. oil production capacity in middle east)
Responded well to global recession
Send clear signals to market regarding intention on economic policy
Future growth will hinge in part on to important factors: (1) labor investments - they have done well with minimal investment
cheap labor) so investors have largely overlooked this; however, labor costs will rise as their economy matures, thus making IP pro
Despite rapid growth, Brazil was the underperformer of the BRICs in many areas. It ranked among the most challenging countries
to start companies, and labor laws made it costly for companies to hire or fire workers (see Exhibit 7). Global analysts suggested th
rates, and cumbersome red tape. High interest rates and barriers to borrowing blocked market entry for entrepreneurial Brazilian
funding.
Economy:
History of economic boom and bust, hampered by high foreign debt and inflation. Lesson: reforms of 90's (Plano Real) generate
International
Build international coalitions, particularly among equal or lesser countries - position yourself as their leader on global stage.
Leverage international agreement policies to gain advantage (WTO, cotton dispute)
Careful not to align with "wrong countries" (Iran) - could hurt relationship with stakeholder countries
Need to improve workforce and infrastructure
Related thought: government is trying to create more sophisticated (e.g. high tech) industries and does this through a great dea
Labor productivity is a leading indicator of long-term country stability/growth, and this figure is closely tied to infrastructure.
Social:
Invest in your people (e.g. healthcare, retirement), even if fails to meet full scope of need. It sends the right signal and helps mi
Democracy ensures public voice in politics.
Government:
Watch out for government corruption and bureaucracy it will impede business growth and investment
What do we want to say about business incentives? They have some generous incentives, but overall cost of business is still high
Need to mind you overall ease of starting a business score build policy around this.
Brazil
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Spain
Japan
Spains banking problems lie with the regional banks (the cajas) that lent all the money to property developers to fuel the boom times.
In theory, the cajas sound good they are small, local and focus entirely on retail and commercial banking, lending to local businesses.
Almost all of these banks were controlled or influenced by one of Spains local governments. The politicians in power would have voting
There were about fifty cajas now reduced to ten. It is now becoming clear that the local developers were in cahoots with the local po
2008-5th largest economy in the world
Population 46 million
GDP: 5% agriculture, 29% industry and 67% services, tourism (2nd highest in the world) 10.7% and construction 11%
Trade: 61% imports and 72% exports
Democracy (since 1978), governed by parliamentary system under a constitutional monarchy
Decentralized- autonomous communities had their own elected parliament/government
Universal healthcare GIni coefficient 34.7%
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How Countries Compete: Strategy, Structure, and Context
Introduction
1. Ten Strategies
Category Types of Strategy Description
Fiscal policy The governments budgetary stance: surplus, deficit, balanced. Managed through spending and taxation policie
Monetary policyControls supply of money via interest rates, open market operations, and reserves to ensure healthy economic
foreign exchange.
Control exchange ratesSome countries allow their currency to float freely (open market) while others fix the price or manage their app
manage their currencies instead control flow of capital in and out of the country (capital accounts)
Income policy Direct control over wages and prices: rarely used and rarely effective. Used primarily in emergencies inflationa
Trade policy Use of tariffs, quotas, and other restrictive agreements. Most common microeconomic policy.
Restriction or promotion
of federal direct
investment (FDI)
Designed to protect domestic firms from foreign ownership or from foreign competition. Historically, countries
foreign direct investment. Today, most countries have significantly lowered the barriers to FDI, following the su
many countries eagerly encourage FDI by offering tax remissions and creating industrial parks or business cluste
Nationalization and
privatization
Mirror policies deployed by countries wishing to affect the ownership of firms. Historically, often include utilitie
trend has been to privatize.
Economic regulation
Economic regulation, which is usually implemented to correct some perceived economic flaw (such as a natural
a major impact on development. Has been applied to many vital industries: transportation, energy; telecommun
can amount to 25% of an economy and have large affects on infrastructure).
Competitive policyLarge affects on national output. Can range from strong antitrust provisions designed to encourage competition
pricing, as in Japan before the 1970s.
Provision of subsidy
There is a wide range of subsidies, varying from direct grants, to tax reimbursements to help with inputs (e.g. la
defense contracting and government purchasing. When such policies are coordinated with a broad developmen
policy.
Every country has a (1) strategy for economic development. It may be explicit or it may be implicit-a loose collection of goals and policies that merely appears as s
enough. Countries must have an (2) organizational structure that can effectively implement their strategy. A mismatch between strategy and structure invariably
strategy and structure must fit each country's (3) context - the national and international conditions in which the country operates. In business, context would be
level of corruption, natural resources, education, income distribution, and international security are key among these contextual factors.
Macroeconomic
Strategies
Microeconomic
Strategies
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2. Structures
Types of Structure
Political
Economic
3. Context
Developing Resources
Resource
Natural
Human
Technology
Abundance varies greatly across countries. Regardless, it must be managed very carefully to avoid excessive environmental damage, waste
China: Limited arable land to feed large population. If land is deforested, over fertilized, or allowed to erode, it will adversely affect the c
abundance of coal for energy, but is now suffering from significant air quality issues.
U.S.: Has one of the largest abundances of resources in the world, particularly fossil fuels. Years of underpricing and overuse have great
emissions are most inefficient in the world (per capita)
Saudi Arabia: Abundant oil has fueled a wealthy, powerful monarchy that sustains power by subsidizing critics and opposition groups and
Wealth is concentrated, resulting in weak GDP growth (1.8%).
South Africa: Great abundance led to over-reliance on raw material exports
UK and Singapore: Small islands with minimal resources, they compensate by investing in financial and intellectual resources.
Both quantity and quality are vital:
Quantity: Chinas workforce is immense and unskilled, creating downward pressure on wages. In contrast, declining birthrates (e.g. Sing
keep economy growing.
Quality is a bigger issue: Countries with highly developed education system (U.S.) leverage this to drive economy (e.g. scientific advances
Indias economic rise. Aside from formal education, informal education also helps (foreign direct investment by western firms in China has
Chinese workers).
Educational institutions, corporate research labs, and patent offices are critical technology drivers (e.g. U.S. and France). Absorbing techno
is a secondary path (e.g. China).
Foremost structure to differ across countries: democratic, communist, autocratic, etc. Can be a two party system (U.S., UK) or dozens (Ital
The more parties, the more difficult to enact broad policy changes. The fewer parties, the more likely to see sharp policy changes with eac
for long term objectives)
Description
At a macro-level, deals with relative weight of consumption, investment, government and trade (in U.S, consumption is 70% of GDP; in Sing
50%). At a micro-level, economic structure varies sharply with private v. public ownership, concentrated v. fragmented incomes, and manu
Description
Institutional
Includes structure of banking system, court systems, policy and military, and rule of law (particularly property rights). Further, several instifor the country to develop: labor management, savings systems, nature of bureaucracies, separation of power between legislative and exec
federal government and states. e.g. Singapores Central Provident Fund guaranteed high enough savings to fund domestic investment, m
has no such system, therefore savings are among lowest in the world.
To grow, every country must make choices about the use of scarce resources. If economic growth is to occur, these must be increased and must be used efficient
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No country can accelerate economic growth if consumption and imports absorb all available resources, as there would be no surplus capita
capital:
1. Debt from domestic banks: Savings rates vary dramatically across countries.
For example, Asians are savers (30-40% of GDP): for retirement, as there are no support programs; tax benefits; cultural trends, legal requi
compulsory 40% down on home mortgages in some countries. Westerns, in contrast, are spenders.
Therefore, the structure of institutions is crucial. If equity markets are weak (as they were in japan) or nonexistent (as in China), and if capit
savings flow to domestic banks. With a limited number of banks and nationwide branching, it is possible for government to channel savings
industries targeted for success.
2. Domestic equity: The U.S. has long maintained well-developed equity markets with widespread access through investment banks, disco
Combined with a healthy venture capital market, raising funds through equity has been far easier than in any other country. Domestic equ
3. Foreign direct investment (FDI): Historically, most comes from and goes to developed countries. Since the early 1980s, FDI has increasing
countries -especially as they opened domestic ownership to foreigners and privatized. Canada and Singapore are good examples of sourcin
special economic development zones.
4. Intentional foreign debt financing: In many developing countries, where living standards are low and capital scarce, public and private d
its railroads and canals by selling bonds to affluent British savers). Foreign debt reliance first took off after oil shock of 1974: oil price incre
countries that banked it. The global economic slow down forced countries to borrow heavily from these multi-national banks. This continu
broke, unable to service their debt. This led to expansion of IMF (International Monetary Fund) to become lender of last resort: they lend
5. Unintentional foreign borrowing: Some countries (India and Poland) had no intention of borrowing: India aimed for autonomy from the
finance. But because of the oil shock (in India's case) and asymmetrical trade with the USSR (in Poland's case), both countries began borrow
payments deficits. The result was the same-debt crisis.
As a consequence of these continuing problems, foreign debt became a less acceptable way to finance economic growth. Increasingly, cou
domestic finance and foreign equity were less leveraged, sounder channels to finance economic growth.
Capital
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Efficient Usage of Resources
Source
Foreign competition
Domestic competitio
Competition for FDI
Administrative allocat
Role of Government
Role
Security
Creating contracts,
protecting property
rights, and enforcing
laws
Backing risk
Managing macro
economy
Implementing
industrial policy
Many larger countries have competitive markets, but U.S. sets the standard. With almost no state-owned firms and a powerful antitrust tra
near constant pressure on firms to innovate, minimize costs, reinvest, and pursue competitive advantages.
Countries that seek foreign capital compete in a world market for POI. Examples:
Canada: successful in courting U.S. investors, mostly in minerals-related sectors
NAFTA: Reduced North America trade barriers and amplified U.S. investment in Mexico
China: best example, via economic and technological development zones
Deemed to be wasteful, inefficient and corrupt by many western countries, particularly U.S. and U.K. History has shown, globally, that this
Has worked in a few occasions: government owned 25% of GDP in Singapore across many industries, which led to over 9% GDP growth for
Description
Government must provide security-both domestic and international security-so that markets can work. Crime interferes with market trans
and organized crime controls and distorts whole sectors of commerce.
Description
Countries that expose themselves to international competition experience one of two results: either efficient use of resources or failure. E
Italy: developed a host of craft industries in regional clusters that could not have succeeded without constant pressure of foreign compet
South Africa: BMW makes vehicles for export here - foreign competition pushed both the firm and the country to be efficient.
Every country needs a legal system that is trusted by people and institutions, and that works to settle commercial disputes. Where propert
1990), credit is uncertain, property markets do not function, and investment is damaged. Countries need a system of tax collection that wo
works. Securities laws that facilitate investment, banking regulations that secure deposits, and legitimate relations between nation states a
function.
Government backs risks of all sorts. While markets can handle ordinary risks through insurance systems, government is needed to absorb e
eighteenth century and environmental regulation, health insurance, regulation of nuclear facilities, unemployment insurance, and retirem
the sectors that only government, as the sovereign, can effectively back.
Government manages the macro-economy through fiscal and monetary policy. But even more significantly, ALL governments create, legitim
occur, and markets cannot work, without a reliable medium of exchange (e.g. managing hyperinflation, bank authority, etc.)
Affects change via explicit policy and as an implicit result of microeconomic policy. For example:
Tariffs: to manage trade and regulate foreign investment, externalities, and competition
Subsidies: to aid particular firms and industries
These are often effective, but can also produce conflict internally, weaken productivity, and maldistribute income.
Thought to be crucial in influencing economic development. There are more negative examples than positive ones; however, there are five things all governmen
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Efficient Usage of Resources
Efficiency Source
Domestic
competition
Countries that expose themselves to international competition experience one of two results: either efficient use of resources or failure. E
industries in regional clusters that could not have succeeded without constant pressure of foreign competition; (2) South Africa: BMW mak
pushed both the firm and the country to be efficient.
Deemed to be wasteful, inefficient and corrupt by many western countries, particularly U.S. and U.K. History has shown, globally, that this
Countries that seek foreign capital compete in a world market for POI. Examples: (1) Canada: successful in courting U.S. investors, mostly i
North America trade barriers and amplified U.S. investment in Mexico; (3) China: best example, via economic and technological developm
Many larger countries have competitive markets, but U.S. sets the standard. With almost no state-owned firms and a powerful antitrust tr
near constant pressure on firms to innovate, minimize costs, reinvest, and pursue competitive advantages.
Foreign competition
Description
Administrative
allocation
Competition for
foreign direct
investment
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Role of Government
Role
Security
Creating contracts,
protecting property
rights, and enforcing
laws
Backing risk
Managing macro
economy
Description
Affects change via explicit policy and as an implicit result of microeconomic policy. For example: (1) Tariffs to manage trade and regulate fo
and (2) Subsidies to aid particular firms and industries . These are often effective, but can also produce conflict internally, weaken product
Implements
industrial policy
Every country needs a legal system that is trusted by people and institutions, and that works to settle commercial disputes. Where propert
1990), credit is uncertain, property markets do not function, and investment is damaged. Countries need a system of tax collection that wo
works. Securities laws that facilitate investment, banking regulations that secure deposits, and legitimate relations between nation states a
function.
Government backs risks of all sorts. While markets can handle ordinary risks through insurance systems, government is needed to absorb e
eighteenth century and environmental regulation, health insurance, regulation of nuclear facilities, unemployment insurance, and retirem
the sectors that only government, as the sovereign, can effectively back.
Government manages the macro-economy through fiscal and monetary policy. But even more significantly, ALL governments create, legitim
occur, and markets cannot work, without a reliable medium of exchange (e.g. managing hyperinflation, bank authority, etc.)
Government must provide security-both domestic and international security-so that markets can work. Crime interferes with market trans
and organized crime controls and distorts whole sectors of commerce.
Thought to be crucial in influencing economic development. There are more negative examples than positive ones; however, there are five things all governmen
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Short term
Brazil China Spain Japan
Brazil China BrazilChina China China
Spain Brazil China Japan
Japan Japan Either Japan
Long Term
Brazil China Spain Japan
Brazil Brazil Brazil Brazil
China Brazil TBD China
Spain Brazil China
TBD
(dependingon industry)
Japan Brazil Japan
Return on Investment Comparison: Short v. long term across each country
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Brazil
16th
Century Colonized by the Portuguese, exports of lumber, gold, sugar and tob
1822 Brazil declared freedom, still focus on commodity export
1888 Abolition of slavery
1889 Rebellion forming a republican government. Created a coffee cartel1930 Overthrow of republican government by Getulio Vargas. He became dictator.
Instituted exchange rate controls and import tariffs
Expanded into mining and oil
Restrictive labor market policies made it costly for firms to hire/fire
Still relied on agricultural exports for economy
1950s Coffee prices dropped and balance-of-payments crisis occurred, stabilizatio
1955 Juscelino Kubitschek continued state run industrialization
1960-1964 Inflation of went from 25% in 1960 to more than 100% in 1964
1964 Military coup, continued the ISI growth strategy but opened it up to direct fore
1982- disastrous end to Brazilian miracle driven by skyrocketing currency
1985 collapse of military regime
Inflationary to Real Growth
1989 Fernando Collor de Melo elected, Inflation rose to over 1,000%
1990 1/3 of population below poverty line
1992 Collor impeached, Fernando Henriques Cardoso introduced Plano Real cre
1993 inflation peaked at 2,700%
1994 Cardoso elected on success of Plano Real
1997/1998 Asian crisis and Russian government default led investors to pullout of
1999 Cardoso forced by IMF to make the real have a floating (not fixed) exchange
Brazil under Lula and Dilma
2002 Lula campaigned as a moderate even though he had a left wing background and wonTrade and Globalization
During numerous meetings of trade ministers for more than 140 countries Brazil sto
1995 Joined WTO after lowering tarrifs on imported goods. This helped national fir
2001 WTO Doha Brazil took a leading role in negotiations with the WTO and was
2008 Support disappeared for the Doha round as the US (and then global econom
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cco and then farmed coffee (using slaves from Africa and indigenous people). Exporting of co
n program driven by IMF implemented.
ign investment. Reforms called Brazilian miracle created GDP growth averaging more than
ating high interest rates to restrain inflation
emerging economies. Brazils tock market dropped 33% and cash reserves fell from $60B to $3
rate
the election easily. He came from a poor family, worked in a factory, and climbed the ranks of the metalwo
od out as a leading voice of emerging markets. Specifically, Lula led the creation of the WTO G
ms become global and it was driven by efficiency.
ogged down in disputes over agriculture and Trade Related IP Rights (TRIPS). They were at th
) tanked.
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modities was the focus
10%. Elimination of political parties
B due to trying to maintain a fixed exchange rate.
rkers union. Easily re-elected in 2010 and endorsed Dilma. This endorsement gave her the 2010 election
-21, a block of developing countries that negotiated collectively at WTO meetings.
e forefront instead of the US etc. One goal of the Doha round was to minimize agricultural sub
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as she was behind her competition until then. Her background was different as she was from a middle cla
idies in the US and other established countries.
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ss family
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1970s Japan had recovered from post war devastation and citizen1980s USA had large trade deficits with Japan1990 Japan economy began to suffer with through economic down
Early 1980s US has large trade deficit with Japan
1985, the 5 leading industrial countries formed the 1986, Japan dropped the discount rate to combat t 1987, Discount rate hits 2.5% (its lowest post war l 1989, Discount rate was raised to 3.5%, which cau 1996, Urban property values fell 56%. 07/1998 Government announced setting up bridg 1999 The discount rate reached 0.1%2002 The Japanese economy began to pick up2005 The economy was doing well.2006 Short term interest rates rose.2007 Post war baby boomers began to retire2010 Japan comes out of the economic crisis of 202011 GDP then fell by 0.7%.2011, Chinas GDP overtook Japans. China is also2012 The growth forecast was 2%.
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were living comfortably.
urn and corruption
nd West Germany.plaza accord to drive down the dollar.
e falling growth rate, causing the bubble
vel)
ed the Nikkei to drop from an all-time high of 38,915 by 48%. This was almost a value of $4.9
e banks to help sick banks
08 with a 4.5% GDP growth in 2010.
xpected to overtake that of the US in 2027. Indias is expected to match Japans in 2012.
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rillion in two years.