Most of your classes will use the case method of instruction in some way.

It is a
powerful way to learn, but it puts considerable responsibility on you to prepare
the case and participate in the class discussion of it. You can view your role as an
advisor or consultant to the protagonist(s) in the case. You are usually trying to
resolve a problem or dilemma. Rarely is there a right answer.
Please read the note An Introduction to Cases carefully. Try to follow its
suggestions as you prepare the case assignment for our Thursday class: Brazil:
Leading the BRICs? In particular, use the questions at the end of the note to help
you analyze the case and determine the recommendations/actions you feel are
appropriate.
These questions may help you in preparing the Brazil case:
1. Are Brazils WTO actions serving the countrys long-term economic and
business interests?
- No. While the WTO Cotton Dispute did earn Brazil $829 million in
countermeasures, it may have compromised a beneficial relationship
with the U.S. for the countrys long-term economic and business interests.
a. In the compulsory licensing issue, who is right, Brazil or
Merck? Why?
- Merck was correct in stating that Brazil should be willing to pay more for
the HIV medicines.
- Being the worlds 12th largest economy, Brazil has the capacity to afford
medicine at a higher cost, which would allow poorer countries, who may
be hit harder by the disease, an opportunity to afford the drugs.
b. What are the best arguments Brazil and the United States can
make to the WTOs dispute settlement body concerning
cotton subsidies?
- Brazil made a strong argument in suggesting that the global cotton price
was depressed by 13% due to the United States actions.
- The United States argument that Brazil was nave in considering
themselves a developing country when they were in fact the worlds
eighth largest economy was very effective.
2. Will Brazilian capitalism sustain current GDP growth levels? Is Brazil
the country of the future? Why? Why not?
- No, but they can if they improve in necessary areas.
- If Brazil continues to move towards commodity exports, it could lead to
appreciation of the real exchange rate and a declining competitiveness in
other industries.
- Brazil needs to save and invest in a more efficient manner to be able to
sustain a GDP growth level of 5% or higher.

A. Who is the protagonist?

- Brazils newly elected president, Dilma Rousseff.
B. What are his or her objectives (implicit or explicit)?
- Guarantee price stability and eliminate obstacles that inhibit progress,
including rising inflation, high interest rates, an appreciating exchange
rate, poor infrastructure, excessive bureaucracy, and persistent crime.
C. What decisions (implicit or explicit) must I make?
- Should Brazil take a leading role in multilateral negotiations on trade and
global governance? Should I push for completion of the WTOs Doha
round negotiations, try to establish a ne Rio round of global talks, or
instead focus on promising regional and bilateral agreements?
D. What problems, opportunities and risks do I, as the protagonist, face?
- Problems: Education needs to be improved significantly to allow Brazil to
compete with other rapid-growth countries. International institutions do
not reflect the new balance of power.
- Opportunities: The chance to reconsider Brazils economic development
plans and international relations.
- Risks: Free trade has seemingly pushed Brazil back to commodity
exports, and overspecialization in natural resource exports could lead to
an appreciation of the real exchange rate and a declining competitiveness
in other industries.
E. What evidence do I have to help make the decision? Is the evidence
reliable and unbiased?
- Data from the results of previous negotiations between Brazil and the
WTO.
- The facts are reliable, and while some may be considered biased, both
sides of the disputes are represented equally.
F. What alternative courses of action are available?
- Allow more developed countries to maintain same level of control in the
WTO and focus on internal affairs.
G. What criteria should I use to judge the alternatives?
- The WTO Cotton Dispute, in which U.S. cotton policies had resulted in
serious prejudice to Brazils interests in the form of price suppression in
the world market.
H. What action should I take?
- Continue to push for a bigger leadership role in multilateral negotiations,
but avoid brokering deals with countries that are controversial to the UN,
such as the deal with Iran involving the transfer of nuclear materials to
Turkey for enrichment into fuel-grade uranium. If Brazil wants to become
a permanent member of the UN Security Council, they must prove
themselves to be prudent.
- Generate incentives for investment.
- Plan ahead in order to reduce public debt, save more, and invest properly.
- Reinstate PAC to improve transportation, logistics, and energy.

Continue to offer Family Grants to those who are committed to keeping

their children in school, and continue sending children for regular
medical visits and vaccinations.
I. How should I convince others in the case and in the classroom that my
approach is the best?
- Brazil must plan for the future in order to be able to sustain a rapidgrowth rate of their GDP. Maintaining a respectful relationship with the
UN and thinking ten years down the road will benefit the country better
than searching for short-term solutions.
J. What did I learn from this case?
K. How does it relate to past cases and my own live experiences?

Brazil:

Wants to improve economy

Has been successful based on GDP

Subsidies and Intellectual Property (IP)

If not protected, you decrease incentive for research

WTO:
IP: