Brazil - The Perennial Under Achiever


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Case Details:

Case Code : ECOA104
Case Length : 17 Pages
Period : 2003
Organization : -
Pub Date : 2003
Teaching Note :Not Available
Countries : Brazil, Latin America
Industry : -

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Background Note

Early History
The treaty of Tordesillas (1494) between Spain and Portugal gave Portugal claim to the eastern portion of the then undiscovered continent of South America. Colonial rule, which started from 1500, continued till 1815 (See Exhibit V)...

Economic Policies

The Brazilian government had traditionally been the dominant player in the economy, through wage, price, credit policies, subsidy and fiscal incentive programs. Under Cardoso, the government had attempted to reduce its involvement in the economy and sharpen its focus on public health, safety, and education...

The Industry

The Much of Brazil's industrial development after the Great Depression of the 1930s was the result of nationalism and state initiatives. The government took control of some of the country's largest industrial enterprises, usually in partnership with one or more local or foreign corporations...

Foreign Trade

Exports accounted for only a small fraction of Brazil's national income. But they were important as the country had to import various capital goods and raw materials, particularly crude oil. The traditional dependence on agricultural products for exports had however decreased over the years.

Manufactured wares had begun to account for an increasingly greater share of exports since the mid-20thcentury. Brazil had opened its market to international trade in recent years. Peak applied tariff rates were only 35%...

Excerpts Contd...>>

1] The Economist 20th February 2003.

 

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