Brazil rocks the Mercosur boat
Article Abstract:
The Mercosur trade block has been hit by the collapse of the Brazilian currency, and this is more serious because of the dominance of the Brazilian economy. Argentina is unable to devalue since its currency is linked to the US dollar. Mercosur has helped create a large market which is attractive to foreign investors. There is concern that investors could be deterred due to fears of internal conflict within Mercosur. There is a strong political investment in Mercosur, however, which should help it to survive.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1999
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Mercosur's malaise
Article Abstract:
The Mercosur trade block as helped trade increase between the four member countries, Uruguay, Paraguay, Argentina and Brazil from 1990 to 1997. Mercosur was hit by the devaluation of the Brazilian real, and has been affected by drops in output in member countries. The members emphasize that they are committed to Mercosur, but there are concerns about access to the Brazilian market. There is a need for agreement on a number of issues, such as a common competition policy.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1999
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Comment about this article or add new information about this topic:
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