Successfully reported this slideshow.



Published on

Muhammad Muavia Khan

Published in: Business
  • Be the first to comment


  2. 2. 1. 3 historical events that shape present day of country. Tiradentes - Joaquim José da Silva Xavier April 21 a Brazilian national holiday, commemorating the execution of Joaquim José da Silva Xavier of Minas Gerais state. Tiradentes led the first organized movement against the Portuguese. Tiradentes organized a protest, and for his efforts, was jailed and executed on April 21, 1792. Why? This was the first major movement against the Portuguese rule in Brazil and paved the way for future movements that resulted in the independence of Brazil.
  3. 3. 1. 3 historical events that shape present day of country. The Sojourn of the Portuguese Court In November 1807, Napoleon dispatched an army into Portugal. Prince John, embarked from Lisbon and sailed for Brazil. Prince John made Rio de Janeiro the seat of the royal government of Portugal and decreed a series of reforms and improvements for Brazil, among them the removal of restrictions on commerce, the institution of measures beneficial to agriculture and industry, and the creation of schools of higher learning. Why? Not only the arrival of Prince John initiated widespread economic transformations but the developments undertaken in agriculture and the education sector facilitated Brazil in becoming a leader in South America. Also the 5 year period before the recall of Prince John to Portugal, the regime had lost favor among the Brazilians much due to the corrupt nature of the government and also because many neighboring colonies had announced independence from Spain. Prince John inherited the Portuguese crown in 1816 and by the time he made his son Don Pedro the regent of Brazil in 1821 sharp antagonism had risen against his reforms in Brazil which eventually resulted in the bloodless independence of Brazil.
  4. 4. 1. 3 historical events that shape present day of country. The Brazilian coup of 1964. From 1961 to 1964, Brazilian President Joao Goulart had been initiating economic and social reforms that were clearly failing. The Brazilian coup of 1964 was "revolutionary" because, unlike previous coups which were adjustments of politically deadlocked civilian governments, this coup led the military to seize power and govern directly from 1964 to 1985. At first, there was intense economic growth, due to neoliberal economic reforms, but in the later years of the dictatorship, the reforms had left the economy in shambles. Why? With soaring inequality and national debt. This caused the military to loose power and Fernando Collor de Mello was the first elected president by popular vote after the military regime in December 1989. He maintained free trade and privatization programs. A number of government-owned enterprises were privatized such as Acesita , Embraer and Telebrás . This transported Brazil into a 20 th century democracy and ended the rue of Military Coups.
  5. 5. 2. Major economic exports and why they are the mainstay of the economy? Brazil develops projects that range from submarines to aircraft and is involved in space research: the country possesses a satellite launching center . In the cattle-raising sector, the “green ox”, conquered markets in Asia , Europe and the Americas . Brazil has the largest cattle herd in the world, with 198 million heads, responsible for exports surpassing the mark of US$ 1 billion/year. A pioneer in the manufacture of short-fiber timber cellulose , Brazil is the fifth largest world producer in the packaging sector. In the foreign markets, it answers for 25% of global exports of raw cane and refined sugar. It is the world leader in soybean exports and is responsible for 80% of the planet’s orange juice , and since 2003, has had the highest sales figures for beef and chicken in the world.
  6. 6. 2. Major economic exports and why they are the mainstay of the economy? Submarines and Aircrafts are such merchandise that are not only in demand because of the growing military race among countries but it also brings in big bucks. A large portion of the Export revenue comes from the cattle sector that is more than US$1 billion. The packaging sector can provide big untapped markets in Eastern Europe and Asia. Since it is self sufficient in raw cane and refined sugar, exporting these commodities to bring in foreign reserves is not at all a bad idea. Another major contributor to the export orange juice is definitely a stronghold of Brazilian Exports because of its massive market share.
  7. 7. 3. Relationship with neighbors and world community and background. Brazil has 10 neighboring countries, namely French Guiana, Guyana, Suriname, Venezuela, Colombia, Peru, Bolivia, Paraguay, Uruguay and Argentina. More recently, the country has aimed to strengthen ties with other South American countries, engage in multilateral diplomacy through the United Nations and the Organization of American States. Brazil's current foreign policy is based on the country's position as a regional power in Latin America, a leader among developing countries, and an emerging world power. Current Brazilian foreign policy reflects peaceful dispute settlement with Argentina, and nonintervention in the affairs of other countries. Identified with other left-wing presidents in the region, Lula da Silva has already made gestures to Cuba's Fidel Castro and Venezuela's Hugo Chavez. The meat of their regional policy has historically been focused on the southern cone states of Argentina, Chile, Paraguay, and Uruguay, with whom they formed Mercosur.
  8. 8. 4. Internal political and social history, their dynamics and their effects today? The core culture of Brazil derived from Portuguese culture, because of strong colonial ties with the Portuguese empire. Among other inheritances, the Portuguese introduced the Portuguese language, the Catholic religion and the colonial architectural styles. Literature in Brazil dates back to the 16th century. Brazil's cultural tradition extends to its music styles which include samba, bossa nova, forró, frevo, pagode and many others. Politics of Brazil takes place in a framework of a federal presidential representative democratic republic, whereby the President of Brazil is both head of state and head of government, and of a multi-party system. The internal politics of Brazil was rued with military rules, betrayals and Political sabotages. The effects that they had made the Brazilians realize that they needed to stabilize there system and move forward, if they wanted to catch up with the rest of the world.
  9. 9. 5. SWOT analysis with explanations? Strengths Its moderate free market and export-oriented economy. Highly developed technological sector. Modernized Agriculture. Stable economy and political structure. Weaknesses Lack of exposure to Asian and Middle Eastern markets. Volatile Economy. Opportunities Asian and Middle Eastern markets. Current Economic boom. Threats Chinese and Indian Companies.
  10. 10. 6. Currency and background for its historical fluctuations. The real became Brazil's official currency in 1790. The real or "royal, real" sign: R$ ; code: BRL is the present-day currency of Brazil and was also the currency during the period 1690 to 1942 . The real is subdivided into 100 centavos . The exchange rate as of October 16th, 2009 is approximately BRL 1.71 to USD 1.00. The real was affected by inflation during its long lifespan and the base currency unit shifted from the real to the mil réis (one thousand réis) and the conto de réis (one million réis) in the final years of the Republica Velha era. In the 18th century and early 19th centuries, the gold currency was based on the 22 carat gold piece which weighed 14.34 gm. In 1846, a gold standard was established with the one thousand réis set at 822mg gold, a 37.5% debasement from the previous standard. In 1889, the value of the currency fell, with a peg of 180 mg of gold for the one thousand réis set in 1926. This was abandoned in 1933 when the mil réis was pegged to the US $ at a rate of 12000 réis = 1 dollar. In 1942, the real was replaced by the cruzeiro , at a rate of 1000 réis = 1 cruzeiro. The modern real was introduced in 1994, as part of a broader plan to stabilize the Brazilian economy known as the Plano Real . The real was introduced at a rate of R$1.00 = 1 "real value unit” a non-circulating currency.
  11. 11. 6. Currency and background for its historical fluctuations. The real initially appreciated against the U.S. dollar as a result of capital inflows in 1994 and 1995. It then began a gradual depreciation process, culminating in the 1999 January Brazilian currency crisis, when the Real suffered a maxi-devaluation, and fluctuated wildly. The currency suffered depreciation until late 2002, when the prospect of the election of Labor Party candidate Luiz Inácio Lula da Silva , considered a radical populist by sectors of the financial markets. Many Brazilians fearing another default purchased tangible assets as an inflation hedge or just simply took their money out of the country. At its worst point in October 2002, the Real actually reached its historic low of almost R$4 per US$1. The real got stronger against the dollar in the beginning of 2005. In the year of 2007, in spite of the various attempts of the Brazilian Central Bank to keep real low, it has grown stronger against the dollar. In May 2007, the real became worth more than 50 U.S. cents for the first time in recent years. As of October 20, 2009 1 Brazilian real = 0.58 U.S. dollars and 1 U.S. dollar = 1.7100 Brazilian real .
  12. 12. 7. Write about political party in power, its ideology and how it compares to the opposition parties in the country. The Workers' Party is a socialist political party in Brazil. It is recognized as one of the largest and most important left-wing leadership movements of Latin America. The Workers' Party was officially founded by a mixed group, formed by trade-unionists , left-wing intellectuals and artists, and Catholics linked to the liberation theology, on February 10 , 1980 . Luiz Inácio Lula da Silva won the 2002 presidential election with over 52 million votes, becoming the most voted president of history, surpassing Ronald Reagan . On October 29, 2006, the Workers' Party won 83 seats in the Chamber of Deputies and 11 seats in the Senate Luiz Inácio Lula da Silva was re-elected. The Workers' Party rejects the traditional leaders of official unionism, and seeks to put into practice a new form of democratic socialism. Trying to reject models it regarded as decayed, such as the Soviet and Chinese ones. It represented the confluence between unionism and anti-Stalinist intelligentsia .
  13. 13. 7. Write about political party in power, its ideology and how it compares to the opposition parties in the country. The Brazilian Democratic Movement Party is the successor of the Brazilian Democratic Movement . It is largely a centrist party, including a range of liberals as well as the former guerilla movement MR-8 . The Brazilian Social Democracy Party is a centrist / center-left political party in Brazil.