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Brazil’s How-Not-To Guide on Trade

November 29, 2017

Brazil got globalization all wrong. In fact, its approach to trade can at times practically read like a how-not-to guide.

Faced with globalization’s potential impact on national industries, it maintains a crony and closed economy, when a more efficient adaptation to increased trade would maintain a relatively open economy while implementing policies to compensate for job losses and other negative impacts of increased international competition. After all, opening up to trade increases productivity, which helps a country escape the middle-income trap, where Brazil is firmly stuck. But...

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