This would mean that Brazil could serve these markets with manufactured products of good quality that would bring a higher added value than primary products.
At the same time, regional and bilateral agreement could be seen as an intermediary step that would help Brazilian producers become more trained and better adapted before aiming for the global market. The Brazilian economy and Brazilian companies are not yet able to fully compete with all foreign companies on all foreign markets. Starting lower, at a regional level, could make them more adaptable and better prepared.
There is another element that should be included in this analysis and in the argumentation. Brazil's economy has performed well in the past decade and Lula's government was very involved in promoting policies that would lead to a macroeconomic equilibrium, however, Brazil's economy is likely still fragile and its involvement at an unsustainable level in global competition could potentially harm the country's approach towards increasing living standards and, particularly, towards ensuring the needed macroeconomic stability. With that in mind, while still involved in world markets and participating in global exchanges, regional and bilateral trade agreements would give it a useful period of adaptation to the rigors of free trade and to potential challenges.
Appendices
There are several macroeconomic elements...
For one, as shown in Exhibit 7, the average lending interest rate in 2010 was 42.0%, about 14 times bigger than the one in the U.S. And 4 times bigger than other countries in BRIC such as Russia or India. This means that businesses find it more difficult to borrow money and finance their operations, making them less competitive on the open, global market.
Appendix 1 -- Interest rates (money market and lending) Brazil vs. others
Appendix 2 -- Ease of doing business: Brazil still ranks very low
Appendix 3 -- subsidies for cotton: Brazil vs. U.S.
Chart2
89
4
Ease of doing business
Ease of doing business (rank)
Sheet1
Brazil Russia India China United States
Lending interest rate 42.00% 11.50% 12.40% 2.30% 3.30%
Money market interest rate 9.90% 6.50% 6.30% 2.30% 0.30%
Ease of doing business 129-120 133-89 4
Sheet1
Ease of doing business
Ease of doing business (rank)
Sheet2
Sheet3
Chart3
Subsidies
Subsidies for cotton
Sheet1
Brazil United States
Subsidies 420 3031
Sheet1
Subsidies
Subsidies for cotton
Sheet2
Sheet3
In the case of Toyota they have focused on supply chain integration, collaboration and collaborative forecasting and replenishment (CPFR) workflows. What emerges from this SWOT analysis from a competitive analysis standpoint is that while Fiat was concentrating on product-driven strategies for differentiation, its competitors had embraced and were well on their way to making processes their core competitive advantage, especially those augmenting personal productivity (Porter, 2008). Fiat's opportunities however are
BEST BUY CO. INC. STRATEGIC ANALYSIS Strategic Analysis of Best Buy Current situation A- Current performance B- Strategic posture Corporate Governance A- Board of directors B- Top management External Environment: Opportunities and threats A- Natural physical environment B- Societal Environment C- Task Environment D- Summary of external environment Internal Environment: Strengths and Weakness A- Corporate Structure B- Corporate Culture C- Corporate resources D- Summary of internal environment Analysis of Strategic Factors (SWOT) A- Situational Analysis Strategic Alternatives and Recommended Strategy A- Strategic Alternatives Recommended Strategy Implementation Evaluations and control Part II Functional and Business strategies of
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