Chief Exports
Brazil is a leading producer of cocoa and coffee. It exports cocoa, coffee, fish, lobsters, lumber and other types of wood to countries all over the world. This relates to GDP because when there is a lot of exports from one country to another, the GDP increases because of the GDP equation, GDP= C+I+G+X-M where X stands for exports. Brazil would most likely export goods to other countries when it has a surplus of a certain product so that it can be able to sell the goods to other countries while still having a stable supply of the goods. This relates to the US because the US exports oil to other countries. |
Chief imports
Brazil imports wheat, petroleum, oil and machinery from other countries. This relates to GDP because if Brazil imports more, its GDP will go down based on the equation. Brazil would most likely import products from other countries because it has a scarcity of the certain product and is forced to buy it from other countries. This relates to the United States because the US also imports products from other countries. For example, the US imports electronics from Japan. |
Trade Balance
Trade Balance is the comparison between the imports and the exports of a certain country. When a country has more exports than imports it is called a trade surplus. When a country has less exports than imports it is called a trade deficit. In 1978 to 1982 for example in Brazil it was in a foreign trade deficit. Right now Brazil is 2654 million US dollars in a trade surplus. This relates to GDP because when there is a trade surplus, there are more exports than imports. The GDP then increases. When there is a there is a trade deficit, the GDP decreases because there is more imports than exports. When the trade balance is in a surplus, the economy is experiencing expansion and peaks while when the trade balance is in a deficit, the economy is experiencing contraction and troughs. This also relates to the US because the US is in a trade deficit according to the graph to the left. Brazil has a trade balance that is a lot more stable than the US. |