Answer these questions Assignment Example | Topics and Well Written Essays - 1500 words

Answer these questions - Assignment ExampleSince brazil nut dependent on primary commodities, it experienced a case of Dutch Disease during this time.A nonher obstacle towards Brazilian development was the elastic supply of labor. Initially Brazil took gain of the import of slaves from Africa but with the abolition of slavery that Brazil tried to ignore for as long as it could, Brazil began to gain labor from Southern Europe. The grove owners began to press the government to transport labor from southern Europe at low costs. Thus an elastic supply of labor was maintained which progenyed in a stable labor costs. While labor costs should have increased with the abolition of slavery, Brazil managed to keep them down through its lax immigration laws. genius obstacle to the development of Brazil was the highschool cost of transportation. The country depended on waterways for the transportation of labor and other commodities. But the topography is Brazil is such that these waterways ar e not strategically placed within the country. Also the flow of certain rivers did not allow for an advantage through water transportation. The other option available to Brazil was land transportation. Unfortunately, land transportation was not a feasible option as most roads were broken and vehicles could not pass by them. The high cost of transportation therefore led to a limited interregional and international trade. Agriculture producers were only limited to market in their immediate vicinity. The surplus that was creation produced in certain areas could not be transported in such a manner as to profit the crop owners. The inelasticity of supply that generated as a result meant that prices would increase every time the demand of advanced products increased in the market. Thus the domestic agriculture sector of Brazil was unable to flourish as a result of the inelastic transportation system within the country.Even though the government realized the impact of the under developmen t