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International Trade is the branch of economics concerned with the exchange of goods and services with foreign countries In the context of globalisation International trade has become an even more important topic now that so many countries have begun to move from state-run to market-driven economies This report aims to critically evaluate the Brazils International Trade Policy The evaluation combined with some trade issues including trade barrier export financing programmes globalisation controlling unfair trade practices subsidies are discussed in the international trade context to identify the benefits and limitation of current trade policy In addition two International Trade theories in point are applied to analyze Brazilian perceived trade issues and select the appropriate option for the future trade policy In the last part of the report some recommendations for Brazils future trade policy are summarize in a prioritized order 20Brazil- An Overview Brazil a country of 162 million inhabitants with a massive gross domestic product GDP of more than US977 billion is the largest economy in Latin America and the 10th largest in the world Real GDP growth was approximately 3 percent in 2000 still in welcome comparing with the slowdown real growth in 1999 The Inflation has been kept in line with the Governments target of 8 in 2000Country Commercial Guide 2001 The process of economic liberalization initiated in 1990s has produced significant changes in Brazils trade regime and investment regimes resulting in a more open and competitive economy Developments in trade activity were better than expected after the financial crisis of late 1998 favourable economic and investment climate results in substantial increase of foreign direct investment FDI since 1997 Trade Policy Review Body 2000With the substantial trade liberalisation Brazil has become an important market for US and EU exporters of goods and services as well as an important source of imports Imports have increased as a result of generally lower tariffs and reduced non-tariff barriers but various barriers to trade still exists in
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