A comparative study of a developed and an emerging economy



Abstract

The difference between the developed economies and the emerging ones cannot simply be gauged on the basis of the size of their GDP. The trends of their economic indicators provide an elaborated version of their attractiveness and play a decisive role while opting between them. The paper discusses different economic indicators and statistics to check that which of the economy, out of the comparison casket, is more lucrative for entrepreneurs and investors. The explanations are made solely on the basis of quantitative and authentic data provided in table 1 and table 2 of the discussion.

Table of Contents

Abstract2

Introduction4

Discussion5

Table 15

Explaination for Table 16

Table 27

Explaination for Table 28

Conclusion9

References10



A comparative study of a developed and an emerging economy

Introduction

The comparative study between the two economies for this research paper is of USA and Brazil. Although many different economies can be compared, with each other, for a research, but the pace of Brazil's economy and its physical and diplomatic proximity to the USA will make this study, a pertinent piece of information. The research will also include the shock of the current recession and the sense of expertise that these two nations used in order to combat it. Blessed by large and contemporary farming, mining, industrial, and service sectors, Brazil's economy prevail over other Latin American countries such as Bolivia, Argentina and Ecuador. Additionally Brazil is mounting its existence in far located global markets (Ang et.al, 2005). After 2002, Brazil has progressively enhanced its macroeconomic steadiness, heightening its foreign reserves, and plummeting its financial leverage profile by transferring its debt load in the direction of real denominated and locally seized instruments (Almeida, 2004). By the air 2008, Brazil was successful enough to become a net external creditor and two of the most renowned ratings organizations awarded investment ranking status to its financial leverage conditions. After a ground breaking expansion in the year, 2007 and 2008, the initiation of the worldwide financial catastrophe hit Brazil with the equivalent force in September 2008. Brazil has experienced two quarters of recessions, as the international demand for consumer; especially commodity oriented exports got shattered, which also resulted in the destruction of external credit that Brazil previously had at its disposal. Even after absolute hazard, Brazil was the first or at least one of the first developing markets that initiated a speedy recovery. As a result to that, the confidence of consumers as well as investors, boosted, and it induced the GDP growth to a favorable, due to rigorous export recovery, by the end of 2010. As for now, Brazil is an attractive avenue for investors due to its strapping growth and its monitory policy of higher interest rates. Huge capital inflows, which came into Brazil within the time span of 1 year, has resulted in the appreciated of its currency and allowed the government increase the taxes on some of the foreign investments. The currents political structure of Brazil has promised to be consistent with previous policies of fighting fiscal ...