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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 379.91+0.4%Nov 11 4:00 PM EST

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To: dvdw© who wrote (90783)5/31/2012 8:41:07 AM
From: elmatador   of 217690
 
As a small country Canada cannot, as Mulcair imply, be a growth-leading export country. Because it small. Large domestic market makes it more likely to obtain ‘growth-led exports’ rather than ‘export-led growth’, which implies a pro-active role in international relations.
Source: The Geography of Brazilian External Trade: Right Option for a BRIC? Renato Baumann

While Brazil was working to change the geography Canada was sleeping. Brazil fought hard in the WTO against protectionism, non-tariff barriers and agricultural subsidies and fostered creation of Mercosur.
And I have been pointing this over the years.

Brazil's pro-active role in international relations has been seen as the country wanting to be a world power when in fact it was a pragmatic strategy to ‘growth-led exports’. See UNCTAD XI OPENS WITH CALLS FOR A NEW TRADE GEOGRAPHY OF SOUTH-SOUTH TRADE.
Brazil’s President Lula and the UN Secretary General Kofi Annan both talked about a “new trade geography” in which South-South trade would play a growing role.

Brazilian currency appreciated as the terms of trade improved as commodities prices raised. Industry share of GDP dropped as economy opened up. And industry share of GDP will drop even further as service sector grow and the effect of oil, i.e., development of pre-salt. Oil was 5% of GDP and will reach 20% of GDP.

If industry dropped as a share of GDP is not necessarily bad. Brazilian was the most closed economy out ot the USSR. Coddled industry practiced high price. Produced shoddy products and was always behind the other countries.

The overvalued BRL applies pressure in the industry to modernize and improve efficiency. The Brazilian industrialists are not used to this. They prefer a cheap currency to export and the government protecting their sectors. Notice today the drive for Brazil to educate its work force which is a pre-condition for that.
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