As an employee of a company that is considering investing in a foreign economy, you have been asked to research a country and make a presentation to your colleagues about an area of economic concern...

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Answered 4 days AfterFeb 02, 2023

Answer To: As an employee of a company that is considering investing in a foreign economy, you have been asked...

Komalavalli answered on Feb 07 2023
48 Votes
Brazil inflation:
Slide 1 :
· Economic concern that I have chosen for the analysis is inflation.
· Further I have chosen Latin America-Brazil.
· In nominal terms, the Brazilian economy has always been the la
rgest in Latin America and the southern hemisphere.
· Brazil has the third largest economy in the Americas.
· It is a growing middle-income mixed economy.
· According to the International Monetary Fund (IMF), Brazil will have the 12th largest GDP spending and the 8th largest purchasing power parity by 2022. 
Slide2:
· Natural resources abound throughout the nation. Brazil has one of the world's fastest growing major economies from 2000 to 2012, with an average annual GDP growth rate of more than 5%.
· In 2012, its GDP exceeded that of the United Kingdom, momentarily elevating Brazil to the world's sixth biggest economy.
· However, economic development in Brazil slowed in 2013, and the country entered a recession in 2014.
· The economy began to improve in 2017, with 1% growth in the first quarter, followed by 0.3% increase in the second quarter compared to the same period last year. It has officially exited the recession.
Slide3:
· Inflation is the rate at which prices grow over a certain time period. Inflation is sometimes a broad metric, such as an increase in overall prices or the cost of living in a country.
· Long periods of high inflation are frequently the outcome of lax monetary policy.
· If the money supply grows too high for the size of the economy, the currency's unit value falls; in other words, it’s buying power falls and prices rise.
· The quantity theory of money, which is one of the oldest assumptions in economics, describes the link between the money supply and the size of the economy.
Slide 4:
· Prolonged periods of high inflation are frequently the outcome of lax monetary policy
· If the money supply grows too high for the size of the economy, the unit value of the currency falls; in other words, its buying power falls and prices rise.
· The link between the money supply and the size of the economy is known as the quantity...
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