Globalization is the key to the success of Brazil. Globalization is the development of an increasingly integrated economy marked especially by free trade, free flow of capital, and the tapping of cheaper foreign labor markets. In recent years, Brazil has been able to create a middle class by opening up its trade borders, fighting inflation, and starting radical social programs to help take away poverty. With the exporting of oil and its other commodities, Brazil has become a major player in the global economy.
Recently, Brazil said they will tighten rules that govern oil-industry taxation in order to reduce imports of machinery and increase locally made production equipment. This is an excellent plan to continue to keep jobs within the nation especially jobs that surround one of its largest sectors, oil. This shows the national differences in the political economy because for Brazil they have to continue to create jobs in order to grow as a nation. Building their middle class has been something Brazil is very talented in and by using rules in the oil industry to promote more jobs in their largest sector shows why. http://www.bloomberg.com/news/2011-09-18/brazil-to-tighten-oil-gas-industry-tax-rules-estado-says.html
