Brazil leading the BRICS case study Essay

As of the date of the typeface and as explained in the case is brazil track the BRICs? Please explain and defend your position. (We volition discuss more recent data in class if time.)From the case I can see that for the past decade, brazil-nut tree has experienced great integration into the global economy which has been characterized by remarkable growth in economy and reinforcement of the rudes weight in international trade negotiations. brazil nut played an increasingly of the essence(predicate) leading agency in the BRICs. However, brazil nut was the underperformer of the BRICs in many areas. It faced significant obstacles to growth, including rising inflation, high sake rates, an appreciating exchange rate, poor radix, excessive bureaucracy, and intractable crime. all overall, I think that brazil nut plays a more and more important role on the international stage but is non leading the BRICs.BRAZIL PLAYS A MORE AND MORE IMPORTANT ROLE ON THE INTERNATIONAL STAGESTR ONG ECONOMIC GROWTH brazil-nut tree had free burning an average annual GDP growth of 4% since 2000. Between 2002 and 2009, dissimilarity and poverty had declined significantly and more than 30 million brazilians had advanced from sink income strata to the middle class.Goldman Sachs expected the BRICs to be among the five largest economies inthe world by 2030, forecasting a growth rate of more than 5% per year for brazil.INTENSIVE INTERNATIONAL merchandise AND FOREIGN INVESTMENTIn 1964, brazil was opened to foreign direct investment an expansion in manufacturing and serve generated GDP growth averaging more than 10% annually.By 2008, Brazil was in the top 20 countries ranked by international trade.After Brazil joined the WTO, over time, the number of Brazilian firms on a angle of the worlds 2,000 largest public companies grew from 13 in 2003 to 33 in 2010.Foreign investors had transferred more than $30 billion in portfolio investment to Brazil in 2010 alone.A MAJOR PLAYER IN MULTILATERAL TRADE NEGOTIATIONSDuring numerous meetings of trade ministers from more than 140 countries, Brazil stood out as a leading voice of emerging markets.President Lula led the excogitation of the WTO G-21, a block of climbing countries that negotiated collectively at WTO meetings.Brazil took a leading role in WTO negotiations and it also held important leadership positions in the Group of Twenty (G-20).AN AGRICULTURAL POWERHOUSEBrazil had become an outlandish powerho purpose, ranked as the world leader in the production of sixsome crops, ranging from sugarcane to dry beans, and among the top five producers of 32 other farming(a) goods.BRAZIL IS NOT LEADING THE BRICS.UNFAVORABLE HISTORICAL FACTORSBrazil became independent in 1822, which was the latest independent country among the BRICs.Brazil had been in a climate of political unrest for a long time make full with rebellions, individual dictatorship, and tensions between the landowners and slaveries.THE GOVERNMENTS D EVELOPMENT STRATEGY obligate OBSTACLES ON ENTREPRENEURSUnder the Import substituting industrialization (ISI) development strategy, State-owned enterprises spread out but new businesses were pushed out of the formal economy.Labor laws made it costly for companies to hire or fire workersFINANCIAL ISSUEHigh interest rates and barriers to borrowing blocked market entry for entrepreneurial Brazilians.Brazil had a long time relying on aggressive growth which provide import consumption and to a large extent worsened Brazils balance-of-payments, while government debt ballooned.RED TAPE AND POOR substructureBrazils infrastructure is in terrible shape and the country isnt saving and investing enough. Red tape and poor infrastructure made it difficult for Brazilians to start companies.LOW-QUALITY TRANSPORTATION SYSTEMIn 2011, Brazil still transported many agricultural exports distances of 1,500 kilometers or more on low-quality roadstead in order to arrive at ports with backlogs and ineff ective logistics. The World frugal Forums quality of roads index ranked Brazil 105th out of 139 countries.THE QUALITY OF EDUCATION REMAINED LOWBrazils students ranked near the bottom in the Organization for Economic Coordination and educations Program for International Student Assessment.COMPLEX DIPLOMATIC RELATIONSHIPSBrazils success in World Trade Organization dispute, use of compulsory licensing provisions to break homelys, and diplomatic negotiations with Iran had generated tensions with the get together States and the European Union.In Africa, Brazil found itself competing with China for development projects and political influence.(2) Was Brazil or the U.S. correct in the Merck dispute? Please explain and defend your position.THE MANUFACTURING hail OF THE EFAVIRENZ WAS VERY HIGH.The combination of prescription do drugss that made up the HAART admission historically cost more than $15,000 per forbearing annually in the United States. The high price in the home country al ready showed that the pertinent R&D, manufacturing cost was actually high, let alone the other special(a) cost for selling in a foreign destination.BRAZIL peril A COMPULSORY demonstrate TO FORCE PHARMACEUTICAL FIRMS COMPROMISE ON THE price.In 2005, Abbott Pharmaceuticals made a compromise deal because Brazilshealth minister threatened a compulsory permission. Brazil governments apothegm it an effective way of pushing the pharmaceutical firms to compromise, so they started to make the same(p) step towards other pharmaceutical firms. What they considered was their own benefit but did not carefully rethink whether it was inappropriate.MERCK OFFERED MODEST DISCOUNTS AND SOON AFTER LOWERED THEIR PRICE AGAIN BUT BRAZILIAN OFFICIALS DID NOT STOP AND INSTEAD inquire MORE.Brazilian officials intensified negotiations with Merck after they received discounts from the company in 2005. Over the course of 16 official meetings, Merck lowered its price again to $570 per patient per year. B razilian health and trade officials demanded better, citing generic suppliers ready to provide the drug at $240 per patient per year.BRAZIL IGNORED MERKS MULTIYEAR STAGED applied science TRANSFER TO FARMANGUINHOS.To protect its IP, Merck proposed a multiyear ordered technology transfer for efavirenz to Farmanguinhos, Brazils national drug fabler. In the process, Farmanguinhos can learn and develop progressively with the booster of Merck, but Brazil government was too aflutter to obtain the short term benefit and did not realize that the multiyear staged technology transfer would benefit more in the long run.MERCK select PRICING RELATED TO THE COUNTRIES ECONOMIC DEVELOPMENT LEVELS WITHOUT DISRESPECT OR DISCRIMINATION.As the worlds 12th largest economy, Brazil was able to pay a little higher price, which on the other hand can succor the countries that are more underdeveloped to lessen budget for the medicines. However, Brazil exclusively compared the price with some of the mor e inferior countries and condemned that Merck did not respect them and aerated them unfairly.MERCK WAS NOT PROFIT-ORIENTED AND IGNORED THE PUBLIC INTERESTS AS BRAZILIAN OFFICIALS SAID.Merck operated several share programs for medicines valued at more than $750 million annually, which showed their sense of social right and care for the public interests.THE COMPULSORY LICENSE WOULD CAUSE INVESTMENTS TO GO ELSEWHERE. suspension off discussions with Merck and seizing its intellectual property sent a dicey signal to the investment community. In Brazil, more than 550 domestic and international firms were multiform in pharmaceutical. All these firms were taken aback by the compulsory license and getting worried that their intellectual property could be expropriated.THE EFAVIRENZ COMPULSORY LICENSE ALSO POSED A CHALLENGE TO FARMANGUINHOS. Farmanguinhos initially was unable to manufacture efavirenz with little more to go on than Mercks patent. It had to work very hard to obtain the know- how to manufacture efavirenz.INTERNATIONAL OR PRIVATE COMPANIES felt up THEY INCREASINGLY LOST COMPETITIVE POWER.Since companies like Farmanguinhos that are owned by the government paid no tax and did not need to go through the public bid pathway to sell their products, they had original huge advantages over the other international or private companies. Moreover, intensive help and attention were given to them that made them overwhelmingly dominant.THE GOVERNMENT REACTION CONTRADICTED ITS PROMISE.To calm investors and firms, the Brazilian government sought that patent laws remained in force. The Ministry of Science and applied science declared that they would respect the international intellectual property legal framework. However, briefly after Brazils health minister announced that the assist drug tenofovir, manufactured by U.S.-based Gilead Sciences, was of public interest, and the companys patent application for the drug was rejected.