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Custom Brazil essay paper sample

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Brazil's unemployment rate stands at 6.4 per cent. Labor force termed as those working added to those not working. That of USA is reported at 8.8 per cent as of today. Comparing both rates it is evident that Brazil is better off since it has employed more people compared to those still looking for jobs.

Brazil uses a currency called Brazilian real and it has a central bank which monitors the economy. The countries annual growth rate in money supply ranges around 17.28 per cent. This is the sum of currency moved out of bank, time, deposits and the like. Brazil's rate tend to grow rapidly in recent times while that of United States seems more stable because they focus their attention in inflation control. Brazil doesn't use another currency and the exchange rate of its currency against the dollar is: one dollar for 1.57900 Brazil Reais. The Real is consequently weaker than the dollar and the exchange rate is floating.

The money growth rate is about the same in the recent past as the countries inflation rate. This shows that it has an inflation problem but the country tries its best to minimize it as it has never been fixed. Brazil has a minimum wage of around $100 per month and most of workers are paid at that range. This explains why the prices are low.

The main trading partners of Brazil are the US and China but china seems to disrupt the relationship between Brazil and US. Brazil depends more on foreign investment and it encourages investors at all angles. It enjoys trade deficit since it has cleared all its debts in good time. The countries export contributes about 10 per cent of its GDP.

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