Brazil Economy Essay

1. What are some of the advantages that a strong Brazilian currency does for its population, and what are some of the challenges of having a strong currency relative to another currency? Global economic forces have served Brazil well in recent years. As a leading exporter of raw materials such as Soya and iron ore, the South American nation has benefited from the Chinese-fueled commodities boom. The instability in exchange rates between currencies creates difficulties for international trade and investment, for business planning, and for national economies, with impacts on prices and inflation. 2. Explain why the Brazilian government is concerned about its balance of trade with China? They are concerned because more Brazilians are buying in China now which could damage businesses in Brazil. Brazil remains a complicated place to do business for foreign-based companies. Challenges include a highly complex and expensive tax and labor environment, burdensome bureaucracy, costly credit, lingering corruption and deep social imbalances. 3. What does a higher external demand for goods and services in a country do for the standard of living of its citizens? This would help them have a better standard of living so that they are able to buy their own homes. 1. Explain the role of capitalism in the 100-year growth of Nederlander concerts. Individual industry growth differ from each other in many ways. Indeed, no two are exactly alike. Some industries are dominated by booms. After a short recession, there is a rapid recovery that leads to a prolonged boom. Over a 100-year life of such a cycle, there might be twenty years of recession and depression followed by eighty years of prosperity accompanied by lesser fluctuations. The Nederlander’s have managed to stay in business for over 100 years which shows that being a small business with a well grounded foundation could be the key to success. 2. Why is Nederlander able to charge higher prices for small theater performances when audiences could pay less at stadium concerts? Because the space has limited seating but big name entertainment they are able to monopolize off of the consumer by charging higher prices to see a big name  entertainer. As a consumer I would pay the higher prices so that I am able to be in a smaller concert environment in my opinion less people mean less problems. 3. Would you expect the current slump in the U.S economy to affect Nedelander’s ticket sales? Why or Why Not? I don’t think it would have any affect on ticket sales, because even though the economy is in a slump we still crave entertainment, and socialization therefore people would find the money to do something that they would enjoy.