18, 19, & 20. In South America, a large state-owned buyer of raw materials and a

Question

18, 19, & 20. In South America, a large state-owned buyer of raw materials and agricultural products swooped into the territory once dominated by the U.S. When the capitalist economy collapsed in the Great Recession of 2007 to 2010, this state-owned buyer used the opportunity to expand its purchases of copper, iron ore, and soybeans, boosting economic activity in those sectors and stimulating a recovery of world prices. Beneficiaries of the export booms enjoyed excess profits for a while, but the benefits were unevenly distributed and there were negative ecological and social consequences in some of the areas impacted. Expanded production also lead to a global glut and decline of world prices after 2011, ilizing these sectors and the economies dependent on the export earnings. True or False, and Why? (In your answer, critically compare the historical experiences of Brazil Giron ore, soy & the macro economy) and Chile (copper). Feel free to draw on the maps and use structural diagrams where appropriate in your answers.) BOLMA AD

Explanation / Answer

True.

By 2009, Latin America's exports to China had seen a rise from 1.1% to 7.6% while United States' share had fallen from 61% to 42.3%. Countries in South America need Chinese imports for growth.

China is buying land for mining and farming in Ukraine, Argentina, Brazil, and, Africa. China's import of raw materials has made it the central commercial partner of South America.

Raw material resources' sustainability has suffered a damage. Brazilian iron ore and Chilean copper have seen a rise in import from China. Chilean copper's price has risen on the back of Chinese demand. The predicted average price for this year was $2.61. It is now more than $2.7. Copper exports at $3.18 billion, are the highest in the last 3 years. The spot price is more than $3 per pound.

China has been responsible for the growth in Brazilian mining sector. Brazilian mining company Vale's $15 billion project in China exports nearly 60% of its mined iron-ore to China.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.