Trade surplus in Brazil drops

January 11, 2013
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Brazil's Trade Drops

Businesses that are interested in international transactions often focus on the possibilities within global trading, as resources from some countries may be beneficial for a variety of industries or corporations.

However, when it comes to international trade, laws in Brazil may be different from those in the United States or other nations, which will bring social and political implications for one's company.

In recent centuries, the globalization of trade has posed more significance, as the industrialization of industries took hold as well as the benefits of outsourcing and multinational corporations.

For instance, electronic equipment, vehicles, and plastics have all moved forward to expand transactions between businesses and consumers. Some of the challenges that globalized trade includes are the costs associated with it, including tariffs and taxes from other countries.

However, when it comes to Brazil's trade surplus, 4-traders recently reported that this has decreased substantially in the last year. The surplus shrank by 35 percent in Brazil, which amounts to $19.4 billion, while exports to China and Europe decreased.

Despite this, the United States has seen more transactions with the country, as exports out of Brazil rose in 2012. Weak economic growth and lack of demand from foreign businesses for exports led to the majority of trade decline in Brazil.

"The political and economic situation in the U.S. is one of the uncertainties for 2013," Foreign Trade Secretary Tatiana Prazeres told the source. "But we should point out the historic resilience of the U.S. We're cautiously optimistic about our sales to the U.S."

U.S.-based businesses that are looking to expand their services or take advantage of the resources available in Brazil should consider speaking with a Brazilian attorney from a law firm in Brazil who has experience developing international trading contracts.

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