Benefits Of International Business Activities Essay

783 Words Sep 27th, 2015 4 Pages
Have international business activities grown or reduced in the past 10 years? Brazil is an export-oriented economy that is driven by its natural resources, agricultural and manufacturing production (Trading Economics, 2015). The country’s exports have experienced a positive growth for the past ten years, except in 2009 and recently in 2014, when international trade has experienced a disappointing decline (appendix 2). The average annual growth of exports between 2005 and 2014 is 3%. Imports have grown at a higher pace than exports with an average annual growth of 10.4% (The World Bank, 2015). Brazil foreign direct investments (FDI) inflows have also extensively expanded in 10 years, going from 15 billion US$ in 2005 to 98 billion US$ in 2014 (appendix 3). FDI, attracted by the large domestic demand and workforce, mainly flowed into mining, agriculture and later manufacturing. Based on the PEST analysis, we can affirm that corruption and lack of infrastructure are the main obstacles to further economic development.

Has international business contributed towards the GDP growth of the country?
Brazil is one of the fastest-growing economies thanks to its exports performance (Trade Economics, 2015). GDP has grown at an average annual pace of 3.4% the past decade (appendix 4). The contribution of exports and imports to the GDP is important, with an annual average contribution of exports of 12.5% and average contribution of imports of 12.6% between 2005 and 2014 (appendix 5).…

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