2011-06-21

Business Growth In South America

This South American country is known for its beautiful beaches and exciting atmosphere. It is the fifth largest country in the world on the population and geographical size list. It is also high on the international economic radar. It is the eighth largest economy on earth."Brazil has an abundance of natural resources which their business people and government are not afraid to utilize," says Robert Romano, a Fairfax, Virginia-based business analyst. "Much of the growth that Brazil has seen has come from its exports. Brazilian companies are making a lot of money off of soybeans and coffee. They are also bringing in money from ironand textiles."

Romano says that American government regulations have a way of making American companies send their business to places like South America where the cost of production is cheaper and the taxes are not as hurtful for the bottom line. There are other areas where Brazil has seen business growth. Brazil’s business community has a good relationship with major auto and aircraft companies."Brazil is exporting planes and cars in large quantities. These are big money items,"says Romano. "A number of companies have found that the policies in Brazil make it an easier place to produce these products. It’s easier to do business with a nation like Brazil and most other nations than it is to do business with the United States."Brazil’s growth has helped the overall South American economy in a big way. In 2007, South America as a whole was experiencing incredible economic development. Venezuela, Peru, Colombia, Argentina and Uruguay were all seeing roughly eight percent growth in GDP. Like most other places, it was hit hard. It is still doing relatively well, however, and much of that is due to proper money management."The overall South American Gross Domestic Product is around $4 trillion,"says Romano. "This is almost four times less than the national debt in the United States. The American money management problem is bad news for America and could be good news for competing nations down the road."Argentina is another South American powerhouse; its agricultural economy has helped it grow. Among products Argentina has made profit with are its world-famous beef as well as citrus fruits. Coal mining is also growing as a profitable business in Argentina. It is now four percent of the national GDP. "The Argentine government and business leaders realized that using its mining resources are what grows bank accounts,"says Romano. "It’s a simple idea."Perhaps the most lucrative of all exports can be found in Venezuela and it is oil. This is the main reason that this tropical nation is such a star on the world’s economic roster. It consistently ranks in the top ten crude oil producers on earth.A major plus of having such a valuable item to trade is the fact that it can help you build up a trade surplus. Venezuela has done just that. This all leads most business analysts to believe that Venezuela will have financial stability for years to come. Other South American nations play a key role on its economic team as well. Colombia and Chile have long been important in the international trade. Sadly, Colombia has had a reputation for being atop the international illegal drug trade list. There’s more to the story with this nation however. Colombia also has been utilizing its resources such as petroleum and coal. Colombia is a major exporter of coffee and its product on this one is world renowned. In fact, several coffee companies have advertised that they are using Colombian coffee beans as a way to lure in more business. For many coffee lovers, Colombian beans are considered to be the best.Chile is a major exporter of items such as fruits and this has helped a number of people in that nation find decent paying jobs, though the wealth differential is still very high in that nation. However, the average income in Chile is close to $15,000 annually. This is not bad for South American nations that are often riddled with poverty.The poorest nation in South America is Guyana. While this nation has opportunity for agricultural growth, it has struggled to develop the proper infrastructure and train the workers needed. This nation saw a three percent jump in GDP in 2008 while most nations saw a decline. There are a number of theories behind this, one of which is that businesses turned to the poorest nation they could find when they were at the height of their struggles.

Overall, South America has become a place where business is growing. It has become a hot spot in many ways. Often the best evidence that a city, country or continent has arrived is when a major sports organization or event locates there.The International Olympic Committee has picked hotspots for its Summer Olympic to take place in for decades. In the 1980s it went with the United States which was prosperous. In the 2000s it went with China which was prosperous. Perhaps the best compliment Brazil and South America as a whole could receive is that Rio de Janeiro, Brazil has been named as the host city of the 2016 Olympic Games. This move shows that there is international recognition that it is Brazil’s time in the sun.This is also one of the reasons that Tradelit.com is opening itself up to all markets everywhere. It gives customers the opportunity to do business with people from hot spots like South America and other parts of the world.

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