Differentiating Between Market Structures, Essay Example

Introduction

When it comes to the economy, Brazil and the United States’ are among the best and both countries produce common resources such as corn and sugar. They also provide a market for each other for the products they produce. Both Brazil and the United States have had a long standing economic relationship as well as maintaining a good financial relationship with other countries.

Resources

In Brazil, some of the noticeable natural resources that can be found there are oil, wood, iron ore, bauxite and uranium among others. Apart from sugar, there is also coffee, cocoa, rice, cotton, wheat and tobacco among others. United States acts as the leading among the major markets for Brazilian products including other counties such as Argentina and China.

The United States which is a bit larger in size compared to Brazil boosts of natural resources such as coal, copper, gold, mercury, phosphates, iron, uranium, natural gas, silver and lead among others. Bio fuels are becoming the best choice for many people in the world now and this is perhaps due to the advantage they have when it comes to the safety of the environment.

The United States and Brazil presently lead the world in the production of sugar and corn based bio fuels and both countries make use of this product in many ways. Bio fuels are a common produce for both countries and has helped to strengthen the financial relations between them. The bio fuels industry is doing very well in Brazil and in the United States, the ethanol is mixed with gasoline but only a small percentage.

Prices of bio fuels depend on many market conditions and for both countries, it depends on the production of both sugar and corn. Low productions of sugar and corn lead to low productions of ethanol which is burned to produce the fuels and in turn the prices of the bio fuels tend to be higher during such times.

References

Jackson, E. (2007). Ethanol and other biofuels become a global political issue.

January 4^th 2010, from The Panama News Online Newspaper website: http://www.thepanamanews.com/pn/v_13/issue_08/business_01.html

Ignacy S. (2007). The Biofuels Controversy. The United Nations Conference on Trade and Development.