The role of trade in Brazil

Brazil is a member of diverse economic organizations, including Mercosul, WTO, Unasul, and the Cairns Group. Upon this, we could know that Brazil deeply depends on its contribution of global trade to its economy. In addition, it mainly exports manufactured and semimanufactured goods (60% of total). In fact, Brazil has experienced an incredible increase of imports and exports since 2000 because of the lower wages and the demand of its skilled labors. Thanks to outstanding technology and Government's policy supporting the openness of economy, Brazil has been the world's eighth largest economy by comparing to GDP.

Due to the increasing demand of quality labors, improving technology, stable government condition (friendly policy and no war) and fruitful materials (coffee, cocoa, and sugar), these factors lure a lot of foreign direct investments inflow to Brazil. That brings about several advantages for Brazil. For example, creating numerous jobs, increase of labor wages, boosting purchasing power from middle-class.

In my opinoins, Brazil still has room to reverse its policies to take care of those people whom have suffered from the flawed economic system. It is because that even though Brazil has several superior developments and it is the eighth largest economy; however, there is a problem which is uneven distribution of wealth. Therefore, while Government is thinking how to get there to become the fifth largest economy in the world, they should make order to shorten the distance between riches and poors. Here I suggest that Brazil should take first step to take good care of the unskilled labors' wages and benefits through imposing taxes on importing luxury goods, such as great cars.