Click to edit Master subtitle style 11/24/2011, REDMOND ROYSTON

BRAZIL/CHINA

5/2/12

CHINA

Population: 1.3 Billion $5.88 Trillion as % of GDP: 29.4% Users as % of Population: Per Capita: $4393

GDP: GDP

Exports Internet

28.8%
High-Tech
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Exports (% of manufactured Exports): 30.98%

BRAZIL
Population: GDP: GDP

195 Million

$2.08 Trillion as % of GDP: 10.2% Users as % of Population:

Per Capita: $10,710

Exports Internet

39.3%
High-Tech
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Exports (% of Manufactured Exports): 13.9%

Difficult to Do Business In
Time

Required to Start a Business: 120 Days (Brazil), 38 Days (China), 34 Days (World), 6 Days (United States) with Visas in both countries

Difficulty

Source: World Bank, World Development Index

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Difference in Growth
Brazilian

government: Inflation targeting by control of Selic influenced by past government: We want 9.5% growthHow can we get there? Not influenced by high inflation in past. China invests some 50% of its GDP between decentralization and centralization

Chinese

Difference
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Currency Manipulators
Both

China and Brazil are currency manipulators and at the forefront of the Currency War (Guido Manteiga) (strong currency)SELIC high, attracted capital inflows, decreased inflation, Brazilians can travel, exports in volumes are down

Brazil

(weak currency)exports in 5/2/12 volumes are up, pegged to dollar

China

Corrupt Government Officials

In

Public Finance, government officials are very corrupt! of Chinese Communist Party and Brazilian Central Bank routinely accept bribes

Members

Brazilian OfficialsDilma Rousseff firing government officials Chinese Officialsa BMW at one house, Mercedez at the other

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Liu Zhihua, vice mayor of Beijing in charge of

Both countries tolerant of corruption

Fernando

Collor (a former president who was almost impeached) who was elected Senator a little over 10 years after confiscating $30 billion in savings from the financial system in a disastrous attempt to control inflation back in the 90s. with the Chinese communist partybribes for projects

Ditto
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A Difference in Infrastructure
Chinese

train crash (July 28). Symbolic of racing too fast and over extended infrastructure
Infrastructure, Hugh Hendry, Youtube:

http://www.youtube.com/watch? v=ektMQGbW3wk

runways at GRU, less fingers (bridges that link planes to terminal) in whole country than ATL, infrastructure does not meet 5/2/12

Braziltwo

Difference in consumer spending

Brazils

savings rate amongst lowest in world (10%)

Brazil's savings rate is among the

lowest in the developing world, where families save more to insure against illness and disaster. Credit card balances increased 30 percent in Brazil between 2008 and 2009, as the country races to join the global middle class. If there is a credit crisis building in the developing world, Brazil could take the hardest fall. 5/2/12

Conclusion
Public

finance greatly impacts both Brazil and China. Both countries do not take a hands off approach. be ideal if we could merge the two countries.

Would

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Brazil has to save and invest more; China needs to consume more, Brazil is rich in resources; China is hungry for them, Brazil is short of good roads and railways; some of Chinas will attract too little traffic, Brazil is young; China is ageing,