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Brandon Maganza
FINC 364
Project Part 1
March 24, 2019
Part 1.
The Federative Republic of Brazil is the largest country in Latin America which
encompasses 8.5 million square kilometers and has a population of 208 million. The currency
used is the Brazilian Real. Its capital is Brasilia; however, the most popular city is Sao Paulo. The
official language is Portuguese, and it is one of the most diverse and multicultural countries in
the world. Brazil is also home to the Amazon River basin which included a vast tropical forest
making this country of interest to many outside entities when it comes to preserving species
and preventing deforestation.
Brazil is by nominal GDP the eight largest economy and eight in purchasing power,
making it the strongest economy in Latin America. They have held the title of being the world’s
largest producer of coffee for the past 150 years. Brazil also has within it an estimated amount
of $21.8 trillion in natural resources comprised of precious metals and timber. They mine and
export a large variety of minerals which include large reserves of iron and manganese which
prove string exports and great use for creating raw manufacturing materials. At 67% GDP the
service sector is the largest component of the Brazilian economy followed by the industrial
sector at 27.5%, and lastly followed by agriculture at 5.5%. In addition to this they have the
second largest manufacturing sector in the Americas currently. They are known for producing
automobile, computers, aircrafts, and steel making a strong manufacturing sector for exports in
the country.
As of 2017 twenty Brazilian based companies made the list in Forbes Global 2000 list.
The Top three of these companies are Itau Unibanco, Banco Bradesco, and Banco do Brasil. All
three of these belong to the banking sector have reported revenues over $60 billion.
Entrepreneurship is also strong within Brazil. There are roughly 27 million adults between 18-64
whom are starting or own their own business. Roughly 37 million jobs are associated with small
businesses with under 10 employees. There is a strong amount of mom and pop businesses and
do it yourself mentality among the Brazilian public which thrives within its internal consumer
market.
Part 2.
• 1994 - The modernized Real is introduced to stabilize the Brazilian economy. The
original exchange rate was 1 Real = 1 USD.
• 1994 through 1997 - The first series of Real coins where launched and pumped into
circulation.
• 1996 through 1998 - the Central Bank of Brazil controlled the exchange rate.
• 1998 - The second series of real coins were put into circulation and are still used
currently
• 1999 - the President of the Central Bank opts to release control over the exchange rate
and the real suffered bringing the exchange rate to 2 Real = 1 USD.
• 2002 - the real reached its lowest exchange rate against the USD 4 Real = 1 USD.
• 2007 - the real fluctuates greatly reaching 0.5 Real = 1 USD.
• 2004 - new polymer banknotes were launched.
Part 3. In billions
1. Current Account: 31.788
a. Exports: 20,205.10
b. Imports: 14,116
c. Services: -3,119.291
