Brazil: Embracing Globalization

brazil-nut tree?s Import Substitution StrategyAfter the Great depression in 1930, the Import Substitution court was adopted by close nations in Latin America.The logic behind this approach was to fill in import products with those locally produced. In this case, Brazil?s strategy was characterized by massive government investment, diddly-squat guideing of key industries, and protection against tilt with towering tariffs walls. The Import substitution strategy was an effort to modernize, annex the evolution rate of the parsimoniousness and enforce the domestic turnout to be strong sufficiency to compete more expeditiously in the international markets. As a result of this strategy, the Brazilian economy taked rapid growth and economy variegation between 1950 and 1963 (See video display 1) specially the industry and services sectors (See Exhibit 2). After of 13 days of economic growth, this strategy brought oppose side effects to the country. pretentiousness began to rise and the economy started to experience balance of payments problems addressed by devaluating the currency and attracting foreign capital. In 1973 when the first oil deck took place, Brazil was importing 80% of its oil. The government designed a plan called ?National increase Plan? that included a huge investment political program and incentives for the local companies to escalate the import substitution strategy.