The Wild Economy of Brazil

Brazil, despite being the ninth largest economy, faces challenges like political instability, corruption, and the middle income trap. The Petrobras scandal highlighted corruption issues, while geographical constraints hinder infrastructure development. Innovation and strong institutions are key to overcoming these hurdles. Brazil's economy is large but wealth is unevenly distributed, and recent growth has been negative. The country must focus on innovation and institutional strength to break free from the middle income trap.

What is one of the key challenges Brazil faces in transitioning from a developing to a developed economy?

• Excessive foreign debt

• Overpopulation

• Political instability

• Lack of natural resources

Who was the Brazilian president known for enacting radical policies and achieving significant economic growth?

• Lula da Silva

• Dilma Rousseff

• Jair Bolsonaro

• Fernando Henrique Cardoso

What was the Petrobras scandal primarily about?

• Environmental violations

• Tax evasion

• Labor disputes

• Government corruption

What is the middle income trap?

• A policy to reduce income inequality

• A strategy to increase middle-class wealth

• A phenomenon where rapid development halts at a certain income level

• A situation where a country cannot escape poverty

Which factor is NOT a reason for economic slowdowns in developing countries?

• Increased foreign investment

• Falling birth rates

• Internal migration

• Rising wages

What is a common trait among countries that have overcome the middle income trap?

• Abundant natural resources

• Strong institutions driving innovation

• High population growth

• Low levels of education

Which of the following is NOT a company associated with innovation in developed countries?

• Petrobras

• Samsung

• Toyota

• Sony

What geographical feature makes it difficult for Brazil to set up ports?

• Plains

• Deserts

• Mountains

• Rivers

Why are Brazilian exports at a disadvantage?

• Poor quality products

• Lack of demand

• High labor costs

• Expensive logistics

What is one of the main industries Brazil relies on?

• Textiles

• Technology

• Tourism

• Mining