Could trade help reduce poverty in Brazil?

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Increased trade could alleviate some of the poverty of Brazil, since it would create a greater demand for Brazilian products and thus create more jobs. The influx of jobs created through manufacturing would also lead to people having more disposable wealth, thus creating additional opportunities in the retail sector.

There are additional considerations to trade alleviating Brazilian poverty. Brazil might be seen as an attractive trade partner due to its cheap labor and fewer regulations protecting workers and the environment. More trade will not help Brazil if the country has cheap labor since the workers will continue to live in poverty. High-paying jobs might not move to Brazil due to a lack of infrastructure or a skilled workforce. Without investing in infrastructure and human capital, Brazilians will continue to be poor no matter how much trade increases. Brazil also needs a stable currency and governance that lacks corruption. If the currency and government are unstable, the people will most likely remain poor no matter how much trade increases.

Increased trade is generally seen as a positive for any nation; however, in order to help individual Brazilians, there should also be improvements in worker skill levels and infrastructure. The currency and government should also be perceived as stable by the investing world. Stability and improvements could also bolster trade by making the nation more attractive to businesses.

Last Updated by eNotes Editorial on December 5, 2019
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