An integration of a given region into the global economy is significant in unifying this area with the economies of other regions around the world. Such integration can result in a number of economic changes that are directed towards enhancing the participation of the region and increasing the level of its welfare (Cacciamali, Bobik and Celli 2012). Brazil is the region whose integration into the global economy is evaluated and analyzed in this paper. Brazil is perceived as the largest economy in Latin America and, thus, is a critical trading partner of many countries in this region. The country’s economy has grown progressively over the last four years as consequence of surging prices, which enhanced its exports (Elstrodt et al. 2). It is essential to gain an understanding of this nation’s integration into the global economy in order to identify how developing nations are able to undergo globalization and establish its impact on their economic wellbeing. The analysis of this Latin American nation is defined in terms of economic growth indicated by the country’s GDP. This is rationalized by the fact that this growth occurs due to a number of economic elements and factors, which enhance globalization, such as FDI, global market, global networks, infrastructure expansion, and human capital. All these elements are able to demonstrate the extent of Brazil’s expansion into the global economy.
Integration of Brazil into the Global Economy. The integration of Brazil into the contemporary global economy has first been facilitated by the country’s increasing participation in global markets and global networks. The relationships with other regions have met the country’s need for growth. In order to be able to fulfill its goals for sustainability as well as growth, Brazil has decided to look for various external opportunities (Ellen and Remes). Consequently, the Latin American nation has taken an advantage of the high demand for resources and joined the global trade. Further, the country has been slowly embracing the performance requirements suggested by international competition further joining the global trade. This global exposure has pushed the country to manufacture cheaper and considerably more modern goods and services. As a result, the companies were able to absorb successfully the world’s rapidly changing innovation, research, technology, and ideas. The innovation and research have to be linked and integrated, since they are critical in advancing regional development policy and, thus, enhancing the integration of Brazil into the world economy (Cacciamali, Bobik and Celli). In this regard, the global flows of data and communication have emerged as being vital to the process of growth. Therefore, as the world increasingly transforms into a digital realm, new means of conducting business emerge, including the use of online means. These changes mean that individuals as well as entrepreneurs are now able to participate more directly in the global economy, including Brazilians.
Moreover, Brazil’s integration into the global economy has also been aided by the removal of barriers of trade and embracement of competition. This has played the fundamental role in increasing the nation’s share of global trade, leading to globalization with more perspectives and opportunities. For instance, at the beginning of 2005 to 2012, Brazil’s exports rose from $11 billion to $64 billion, what makes a substantial percentage of the country’s GDP (Elstrodt et al. 8). Consequently, in order to assume its role in the global market, Brazil has addressed some of the barriers that constrained its trade growth. This action has proven to be beneficial in exposing this nation to other markets in the world, and, thus, has fostered its globalization. Therefore, the World Bank ranked Brazil as 124th country in the world according to ease of doing business index, the factor that increased trade within its borders (Elstrodt et al. 9). In addition, Brazilian sectors have also been more open in relation to competition. This openness has boosted productivity in different sectors. In this regard, the integration of Brazil into world trade occurred through the improvement of trade and embracement of competition, what is in line with the readings of this course. According to course material, the trade agreements can be utilized as a mean of gaining advantage within global trade and, therefore, can enhance the globalization of this nation. In the same way, their situation is also in line with the concept of tariffs, which are explored in the course readings. Reduction of trade tariffs fosters increased trade activities among nations.
Arguably, the integration of Brazil into the global economy has also occurred because of the country’s capability to attract significant foreign direct investment (FDI). This country experiences high volumes of FDI and other cross border lending. This has made Brazil a part of global capital market in comparison to other global networks. Accordingly, Brazil is ranked 7th among the nations of the world when it comes to attracting FDI, which is believed to equal account $57 billion inflows received between 2008 and 2012 (Elstrodt et al. 10). The nation has also decided to channel FDI to other more innovative sectors. For instance, currently there is considerable growth in cross border flows of venture capital. This has been essential in linking Brazilian entrepreneurs with foreign investors and, thus, propelling the country’s growth. In addition, the nation is working towards developing its capital markets. It is essential for a country to foster capital markets and, therefore, enable the attraction of global investment. Further, Brazil has the ability to increase the benefits, which it receives from FDI by widening access to global financing. Considering multinational companies (MNCs), which already have a strong presence in Brazil, FDI is one way of achieving this goal (Cacciamali, Bobik and Celli). This can be aligned with the readings of this course, which explore MNCs as means through which nations are able to establish global value chains. This has served to enhance the global presence of Brazil.
Conclusion. In conclusion, the successful integration of a region into the world economy takes a number of factors into consideration. For Brazil, this integration has united it with other nations of the world, resulting in economic changes that have largely benefited this Latin American nation. The integration of this country into the world economy today continues to take place through the nation’s participation in global markets and networks. This was essential in meeting Brazil’s need for growth. In addition, globalization is currently taking place through Brazil’s decision to remove trade barriers and embrace competition. This has made it much easier for the country to engage in cross border trade activities, which have included it into the global market. Brazil has therefore allowed more countries, which it conducts trade with, to import their goods into their borders. At the same time, these nations in return allowed Brazil export its goods to their markets. Lastly, Brazil, as discussed in this essay, has also integrated into the contemporary global economy through FDI. This has served to increase the growth of the nation.
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Assignment 2: Integration of China into the Global Economy
The transformation of China into a country led by dynamic private sector as well as its integration into the global economy have become some of the most dramatic elements of economic development in the recent times. The growth of this Asian nation over the last few decades has been astonishing with China registering a growth in GDP by approximately 8 percent (Panitch and Gindin 147). Accordingly, this has made China become the world’s sixth largest economy. In addition, the expansion of this county into the world trading system has also been quite impressive. In this regard, this country has experienced an increase in its overall share in the world trade that has risen progressively over the years. According to its current standing, this country’s rapid growth of the economy and its trade expansion are expected to be sustained in the future. While this is true, it is essential to note that there is a need for this nation to address various macroeconomic and structural vulnerabilities for this growth to be fully realized. The opening of this nation to the world helped to overcome these vulnerabilities and allowed the integration of China into the global economy (Sen 2). The scale of China’s global economy integration is defined in terms of its economic development facilitated by its opening to the world. This is justified by the fact that economic development serves as a measure of the extent to which China is expanding its operations into other nations and is globalizing.
Integration of China into the Global Economy. A number of factors and elements have facilitated China’s integration into the global economy. Many of these elements and factors can be linked to the country’s ability to grow its economy. Thus, this integration has been a significant contributing factor when it comes to the globalization of this nation (Sen 6). To begin with, the integration of China into the global economy today has been reflected in its growing role in international trade. In this regard, the expansion of China’s international trade has become a noteworthy facet, making it an important element in the world economy (Tan, Dyck and Hansakul 4). This growing power has been fostered by the country’s decision to generally open its economy that has been instrumental in leading to a surge of FDI. This has been essential in increasing integration into the global trading system. Therefore, it is expected that China will be able to have a much larger impact on the global economy by expanding its role in international trade compared to other Asian economies such as Japan and Korea. This increase in international trade has further enhanced the exposure of China to the global market as it has caused it to broaden its specialization concerning production on the Asian continent (Panitch and Gindin 150). As a result, China today serves as the final processing and assembly center for many imports moving from Asia to Western nations. Therefore, China has materialized as a vital source of growth for the world economy.
At the same time, China’s integration into the current global economy has also been brought by market access prospects. China has recently experienced an increase in market access overseas. It was one of the immediate benefits, which the country received since its inclusion into the world trade organization (WTO) (Tan, Dyck and Hansakul 6). In addition, China was permanently granted the most favored treatment by the rest of the members of this global trade organization. Thus, China has further been able to be exposed to many more additional global markets, as several of its trading partners have eliminated restrictions in relation to imports coming from China. For instance, as an exporter of textiles and clothing, China has recently been included in the Uruguay Round Agreement on Textiles and Clothing, which enables it to increase its exports and, thus, increase its world exports share (Sen 9). This concept of integration is in line with the readings established for this course that analyzed regional development policy. When China is able to enter other additional agreements and participate in the formation of more trade unions, it will continue to growth and globalize.
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Further, the integration of China into the global economy today has also been facilitated by trade reforms and commitments. These are vital in promoting China’s integration into the global trading system and, thus, global economy (Panitch and Gindin 156). It is essential to note that China’s strategy towards economic reforms is gradual and incremental in nature. In this sense, there were no blueprints serving as a guide to the process. The following features have mainly characterized these reforms and the incremental approach. First, these reforms are usually established on an experimental basis before they are introduced to the rest of the country (Tan, Dyck and Hansakul 8). This is essential in preventing the disruption of the economy. Further, these reforms are conducted using intermediate mechanisms. This is significant as it smooths the transition to an economy, which is quite market oriented in nature. The most fundamental aspect of these reforms is demonstrated by the changes that occur due to a broad and increased process of opening up the economy as well reduction of trade barriers. This has led to the liberalization of trade and more detailed commitments from China to adhere to the regulations of the WTO (Sen 5). This type of reforms and, thus, liberalization of trade are in line with the theory expressed in a number of readings in this course that have asserted the significance of exports and imports from other places to integrate into the world economy. For China, this has been vital in driving its international trade and enhancing its presence in the global market.
It is also essential to note that the integration of this Asian nation into the global economy today has also been enabled and characterized by the concept of price dynamics. The continued local price liberalization has become the reason of such globalization. In this regard, prices in China are usually market oriented and, thus, are determined by the market (Panitch and Gindin 153). As a result, over time the price of goods has managed to achieve considerable convergence with international prices, resulting in increased integration of this Asian nation with the global economy. Once again, this fact is in line with the concepts presented in the readings for this course. In particular, this agrees with the idea of enhanced supply chain, since when there are liberalized local prices, distribution of goods is eased, allowing goods to effortlessly move across the borders of China.
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Conclusion. To conclude, it is evident from the above discussion that the integration of China into the global economy has been a working process. This can be attributed to the fact that the country has been slowly following the reforms necessary to transform its culture as well as its decision to open its trade borders to the world. Nonetheless, China has turned into an impressive private sector leader in the economy, a factor that made it become one of the largest economies in the world today. Therefore, from the above discussion, the integration of this Asian nation into the world economy has taken place in a number of ways as well as influences. China’s increased activities in international trade have been essential in its integration into the global economy. Other factors that have been useful in assimilating this country into the global economy are trade reforms and commitment by this nation. The concept of price dynamics has also been noted as being significant in facilitating the integration of this nation into the global economy. In the end, this integration has been effective in facilitating China’s overall globalization.