Rapidly Developing Economy of Brazil Essay

First and foremost, it is worth mentioning that each of the country sector’s of economy has distinguished peculiarities that help to State that the country actually has an emerging economy. Moreover, it is necessary to dwell on the quality of life of Brazilian people in order to get insights into the major issues of the social sphere of the country. Lastly, it is necessary to cast light on the role of each of the sectors of the Brazilian economic system in the broad picture of the nation (Bare, 2008).

The primary purpose of customer and competition policies that are in effect currently in Brazil consists in providing proper conditions for proper functioning of markets. In order to ensure it, it is accessory to have a solid supply side and a solid demand side, competition and consumer respectively. In case with some products, fierce competition can be the most efficient protection for consumers. At the same time, in some markets consumers will not be able to obtain the best deal, despite the fact that there is substantial competition in the market.

Here, the best solution is to introduce certain policies that will help customers to gain more influence. Some of the most common reasons why markets do not provide customers with good outcomes involve: abuse of dominance and collusion between suppliers (Armstrong 2008). These two aspects fall within the domain of competition policy. Apart from these major ones, there can be some other reasons for well-balanced competition, namely: imperfect information about product attributes, inadequate information regarding market prices as well as supplier costs of advertising and consumer costs of obtaining market information.

It is difficult to provide a clear distinction between competition policy and consumer policy. To some extent, it can be argued that competition policy consists of the set of policies and laws that ensure that competition in the marketplace is not restricted to reduced economic welfare. The major function of the customer policy in turn is to stop sellers from increasing their sales by lying about their product features or using unfair practices, like unilateral breach of contract or unauthorized billing.

It is also acceptable to define consumer policy in the context Of some Of the most fundamental problems, as it helps to deal with the following issues: undue sales pressure, information problems pre purchase and undue surprises post-purchase As a matter of fact, business policies along with the common market are at the core of Brazilian legislation. Its primary function is to govern he ways how business is done in the the country. It also facilitates processes of making faster business deals and guarantees accountability of all players on the market, notably: consumers and suppliers.

These activities are overseen by other organizations operating within the nation as well as relevant policies. The specter of policies governed by these establishments is rather extensive, since there is a wide range of legislation practices that all states and businesses have to follow. The enterprise policy of the country concentrates on the facilitation of the financial support for small and medium-sized businesses. It also promotes innovation and development across the country. Moreover, it assists in providing better information for lenders and companies.

To large extent, the Brazilian legislation is aimed at improving legislation across all the member states as well as reducing administrative costs. In retrospective, consumer policy along with competition policy shared little to nothing in common and had only a slight interaction between each Other. Up till now, there has been more focus on competition policy, rather than consumer policy. Though, recently Brazilian leading economists have displayed more interest in consumer policy. Such state of matters can be explained by two causes.

The former one deals with the fact that a present-day consumer has to make more difficult decisions and choices as compared to the past. The latter one consists in an increased impact of behavioral economics, which is based on the likelihood of imperfect consumer decision making specifically, consumers tend to be less rational while making purchasing decisions and are not free from biased opinions. Findings of a recent research into behavioral economic have shown that there is a great number of errors related to decision making process that are likely o enlarge the paternalistic regulation.

Over the recent years, competition policy tended to be fulfilled in a more similar manner in the states of the nation than it used to be. Taking into consideration that the Internet has facilitated many products to be marketed at a global level, this in turn has a great impact on the consumer policy as well. According to Murmurs, marketers need to come up with a strategy that comprises principles of the restrictive jurisdiction in the majority of economically emerging countries like Brazil with regard to the fact that different arbiters apply different standards in these areas (Armstrong 2008).

This is another reason why now there is more focus on consumer policy as compared to the past. In terms of properly functioning markets, competitive pressure implies an idea that only those businesses that meet customers’ expectations can succeed. In fact, there is only a little role for a customer policy when all the product qualities and prices are properly observed and evaluated at the time Of sale. Brazil has a long-lasting economic relationship with the United States. To large extent, this relationship is characterized by extensive investments and developed two- ay trade channels.

In spite of the world recession in 2008, the development of trade continued. At that point the U. S. Exports of goods and services to Brazil were of high importance. While the country is on the road to a single marketplace, U. S. Exporters in some major sectors confront barriers across the market. Normally, the legislation takes two forms, namely: regulations are of mandatory nature and must be directly translated when they are being implemented, whereas directives are interpreted and fulfilled by member states in different ways.

Throughout the history, U. S. Investors have unfrosted low trade barriers when it came to doing business in the Brazil. However, the united States have had certain disputes with the country. Particularly, there are discussions on a range of trade irritants; As a matter of fact, there are issues of restriction on genetically-modified organisms, nanotechnology and biotechnology. Different approaches to transparency in regulatory procedures along with the role of standards and their further development are also under consideration.

Despite the fact that there are no internal borders and restrictions on the major forms of intra commerce, which makes an Brazil an attractive single market for US business, it is necessary understand that the Brazilian market is a differentiated one that has a peculiar supply and demand needs that vary from one member state to another. Of course, those countries that intend to penetrate into the market of the country need to have a clear business strategy that is based on the needs and expectations of each particular country.

The world economy has substantially changed the ways how business is done these days. In the majority of cases, companies adopt American-like business approaches, Hough it is not the case in the Brazil. Here, there is a unique approach to business activities. Consequently, there are observed some essential differences as to how business is done across the states. Social Welfare in Brazil Welfare programs in Brazil appears to involve activities aimed at providing materials and aid for those individuals who are in need.

Some of the most common types of welfare normally include unemployment compensation, food stamps as well as some social facilities like drug rehabilitation and child care support. In fact, the problem of social welfare is among the most divisive ones in the Brazilian politics along with those of immigration and abortion. Even though some of the most common arguments against social welfare are valid, they cannot be viewed as sufficient reasons for abolishing any government support programs targeted at helping people who are in desperate life situations.

A great deal of social welfare criticism comes from free market competition. Proponents of the free market competition maintain that government’s intervention into the market trends is likely to inhibit growth Of business. Accordingly, if an industry or a business fails, the workers ho loose their jobs will act as a labor resource for the competing industry or a business, which is sure to cause a gap in the market. Thus, if unemployed workers enjoy social support, it will slow down the growth in the market and subsequently the flow of competition.

According to Charles Murray, increasing welfare expenditure might result in deteriorating social conditions and rising poverty (“Losing Ground, by Charles Murray,” n. D. ). In his work “Losing ground”, he points out that doling out money to people at a rate that is not matched by the economy will encourage the unemployed to stay home instead of looking for a job. It is also clear that providers of the program also did not succeed in meeting the contractual benchmark, where young people were supposed to find jobs. In addition, they did not comply with a target of helping people aged over 25 into a sustained job.

Social welfare efforts were effective only in case with “mainstream” job seekers, whereas the job needs of people with disabilities or long-term health conditions were not met. Moreover, Brazilian social welfare programs result in providing job opportunities for those people who actually do not need help in finding a job. Instead, people who need help with this problem are not efficiently addressed. All things considered, some may argue that social welfare programs have little or no benefit for people in need, but it is not entirely so.

In fact, programs like that do help people in desperate situations to keep afloat. The majority of people manage to survive only due to government support, which is the primary reason in favor of social welfare programs. The primary target of both deliberate and emergent strategies of Brazil as the emerging economy is to clarify a set of business’ actions. In terms of day-to. Ay activities, any company may apply either emergent or deliberate strategy. They both deal with a focus on the strategy of company’s future activities and business transactions.

In the country, there are applied two major economic strategies, deliberate and emergent ones. The primary difference between deliberate and emergent strategy consists in the fact that the focus of a former one is on direction and control-getting activities, while a latter one is more about the notion of ‘strategic learning’. With regard to a future strategic planning process, an emergent strategy can increase company’s chances to succeed thanks to a systematic approach to the determination of the risks and unknowns.

Potential problems in ignoring emergent strategies include an inability to fulfill a planned strategy due to its contradiction to the unrealized strategy that is already in place. Traditionally, Brazilian joint ventures and acquisitions are viewed as alternatives for obtaining an access to the assets, as they have high transaction costs for the transfer in the market. Normally, international joint ventures appear to be safer than acquisitions in terms of global business. This is predetermined by the fact hat information barriers are an integral part of any acquisition process.

Successful acquisition of a firm requires certain information, a lack of which can lead to problems for both sellers and buyers. In the Brazilian business environment, joint ventures are less risky than acquisitions. In case with joint ventures the exchange partners share investments and demonstrate commitments, the overpayment risk is much lower. Moreover, since joint ventures are governed by a joint board, control is implemented much easier. This also eases knowledge transfer and eliminates information asymmetries. So, these factors are likely to play the major role in the future development of the country.

When speaking about competition policies acting in the country, it is worth dwelling on the notion of consumer welfare. The first thing that needs to be determined when speaking about differences between competition policy and consumer policy is what actually consumer welfare is. Basically, consumer welfare means different values for different groups of people involved into market activities. Those who can be viewed as well-off appear to be concerned with the range of goods and services available, whereas those who are more price-conscious happen to be concerned more with the access to goods and services rather than the choice.

The former perspective is more common among developed countries, while the latter one is the case with developing ones. Thus, Brazil is more likely to pay more attention to administering their competition and consumer protection policies. These two aspects Of consumer welfare should be born in mind in order to examine the link between the two policies more adequately. In case with Brazil, it is the role that the two policies play in business development recesses and property reduction that is the core point when it comes to understanding connection between these two notions.

All things considered, the interaction between competition policy and consumer policy will be rather complex. Naturally, there are problems revolving around trade-offs and striking the balance. Therefore, there is a solid need of introducing an integrated framework that would combine competition policy and consumer policy. Competition policies in Brazil assist in allocating and utilizing resources that are normally of scarce amount in developing countries. This also implies an idea of more output and decreased prices as well as improved consumer welfare.

More output will lead to improved employment opportunities in the industry. Competition in the Brazilian market in turn is about to result in job losses and in some cases in the short run. Such a situation can be improved by introducing a proper social safety net. An effective competition policy will lower entry barriers in the marketplace and help to make the business environment more conducive in terms of entrepreneurship promotion and expansion of small and medium-sized businesses.

All of this has a positive impact on the increase of employment opportunities. An absence of employment opportunities and improper living conditions are numbered among the major causes of the widespread of the poverty in Brazil. As a matter of fact, there can be distinguished two approaches to development. The former one is all about the fulfillment of the minimal needs Of consumers and concentration on such problems as unemployment and improvement of basic health services jut to name a few.

The latter one is concentrated on the development of advanced technologies and industrialization. Here, the bottom line is enhancement and maintenance f competition. Consumer policy in Brazil is considered to be a part of the national strategy that revolves from the first approach, whereas a competition policy is a part and parcel of the second one. Here, it must be noted that the two approaches are not to be considered as alternatives, in fact, they are supposed to be applied at the same time.

Competition policy plays a decisive role in terms of promotion of competitiveness and business growth. Effectively allocated resources will lead to improved competitiveness that in turn is a direct result of higher growth along with development. This ill requires solid industrial and trade policies that are complemented by an appropriate competition policy and legislation. Furthermore, excessive consumer protection that suggests availability of empowered consumers is likely to eliminate the lack of management and add to businesses’ efficiency and competitive edge.

For that matter, it is necessary to empower consumers to a sufficient extent. Resulting from that, it is clear that competition and development play an important role in Brazil when it comes to enhancing consumers’ welfare. Similarly, consumer protection policy and competition logic comprise both competitiveness and development as core activities. Competition policy though should largely on the competitiveness concerns and consumer protection policy is more about development concerns.