MBAA 604 – International Business Administration - Case Study 1 - Brazil’s Quest for Comparative Adv

MBAA 604 – International Business Administration - Case Study 1 - Brazil’s Quest for Comparative Adv

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MBAA 604 – International Business Administration Case Study 1 – Brazil’s Quest for Comparative Advantage January 17, 2015 Emerging Markets: Brazil’s Quest for Comparative Advantage 1. a. Why is Brazil’s agriculture so competitive? Brazil’s primary source of competitive advantage in agriculture is due to the climate and a high concentration of natural resources necessary for the successful rearing of cultivated crops and domesticated animals. Because of its geographic location, Brazil receives an abundance of sunshine, and there exists a ready supply of both water and rich soil throughout the country. In addition, with a total land mass of more than 3 million square miles ( Brazil Geography Introduction) , and a long legacy of agriculture with advanced farming technology ( Brazil Agriculture) , both the physical and cultural environments in Brazil support highly productive agriculture. Lastly, with the realization of the country’s competitive advantage, Brazil has made significant improvements in its infrastructure to support agricultural expansion throughout the country. ( Brazil Agriculture) b. Why do its manufacturing industries lack competitiveness? In contrast, Brazil’s manufacturing sector has been slower to develop. The main reasons for this are the high costs of energy, raw materials, and wages; as well as the appreciation of the Brazilian reai . Other hurdles to which the
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  • Fall '14
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