Assignment 2: Human
Geography and the Real World, Part 2
“Brazil and
Japan, Human Geography Forces at Work”
Introduction
As
the world enters the 21st century, countries rapidly redefine their
roles and assume new positions in the world system. New markets emerge with
great potential, changing the way of life for billions. Brazil is a prime
example of the dynamic transitions taking place around the globe. The unique
interconnectedness of Japan and Brazil show the forces of human geography at
work. The goal of this paper is to show how human geography has affected both
countries and explore the close ties between them. This paper has been
organized into three sections each analyzing different human geography
concepts; globalization, urbanization, and Brazil’s role in the world system.
As Brazil rapidly changes and takes shape in the new world, the forces of human
geography play a special role in predicting how Brazil’s development.
Globalization
Brazil
has been greatly affected by Globalization. The four factors contributing to
globalization all are helping to shape Brazil. The international division of
labour, internationalization of finance, new technologies and a homogenization
of consumer all contribute to the dynamic changes currently taking place in
Brazil.
As
investors recognize the potential of the Brazilian workforce, more jobs and
labour are being outsourced to Brazil. Brazil offers a relatively stable
geopolitical climate and a growing population to meet labor demands.
Automotive
companies are crossing political boundaries and increasing investment in
Brazil. Nissan, Japan’s third largest auto manufacturer, announced it would
commence building 2 passenger cars in Brazil in 2009. Another Japanese car
manufacturer, Suzuki aims to sell 7 000 Japanese cars in Brazil by 2010
(Calgary Herald, 2008). These decisions come as no surprise due to higher wages
and cheaper credit increasing car demand in Brazil. It is not only Japanese
automotive companies taking interest in Brazil, but also American and European
firms. Ford, General Motors, Volkswagen, and Fiat have contributed over 8
billion dollars investment into Brazilian manufacturing operations in the past
10 years (James Brooke, 2005). Although much of the profits from foreign
investment are not retuned domestically, the investment in infrastructure and
provision of jobs is invaluable. Exploiting the different wage rates of Brazil
compared to core countries has shown the effective internationalization of
labour.
The
internationalization of finance has been demonstrated through Japan’s
investment in Brazil’s economy. Brazil’s contribution to Japanese mutual funds,
called Toushin, doubled from 2007 to 2008. The 2007 investment of 484.3 billion
yen (4 billion USD) grew to 879.4 billion yen (8.2 billion USD), at the end of
July 2008 (Chikako Mogi, 2008). Japanese investors feel that Brazil provides a
safe economic bubble, given the current financial crisis gripping the globe.
“Brazil puts priority in containing an economic bubble, and its moderate growth
rate reflects its will to ensure sustainable and stable growth,” says Japanese
economist Shuji Nishimura. Shuji’s comments are reflected in the average 139.4
billion yen invested from 2005-2007, in Brazil (Chikako, Mogi).
An
investment-grade sovereign credit rating, earned in April 2008, due to growing
economic stability, has removed the stigma of Brazil being a risky investment.
To further express the interconnectedness of Japanese and Brazilian finance,
Brazil’s largest private bank, Bradesco, signed an agreement with Mitsubishi
UFJ financial Group. The agreement, signed in August 2008, outlined the sale of
funds, investing in Brazilian assets, to Japanese investors.
Brazil’s
technological breakthroughs have earned high acclaim from foreign markets.
Brazil’s extensive use of ethanol has provided a template on how to incorporate
ethanol into domestic markets. Japan’s is looking towards Brazil for ethanol
supply and inspiration on how to incorporate it into society. Japan, an island
country with little domestic resources, hopes to mandate 3% ethanol in all its
gasoline. Doing so would increase ethanol demand by 1/3 (David Lynch, 2006).
Brazil is a leading supplier of ethanol to Japan, and in July 2008 signed an
agreement to ship ethanol to Japan. The agreement was signed by Copersucar, a
Brazilian ethanol group, and Japan Biofuels Supply.
The cultural
similarities between countries, are a key factor when analyzing the
homogenization of the consumer. Immigration into Brazil, and emigration out of
Brazil, has resulted in the spatial diffusion and blending of global cultures.
Due to increases in transportation technology over the past 100 years, the
world has become much more accessible. The relationship between Brazil and
Japan extends over 100 years back. In 1895, the Treaty of Friendship, Commerce
and Navigation was signed between the Emperor of Japan, and the newly emerged
Republic of Brazil. It is believed, pre World War 1, Japanese immigration to
Brazil helped stabilize the former slave population and national labour force.
The abolition of slavery in Brazil, in 1888, created a shortage of labour on
plantations. The result was an inflow of Japanese workers to fill the gap. Over
190 000 Japanese immigrated to Brazil after the abolition of slavery (Suzuki,
1969). In 1942, when Brazil declared war on Japan, 202 000 Japanese lived in
Brazil (Kunimoto, 1993). Currently, 1.5 million people of Japanese descent live
in Brazil (Japan Ministry of Foreign Affairs, 2008). The extensive population
of Japanese living in Brazil creates strong cultural ties, as the two
ethnicities become intertwined and interconnected. The diffusion of people into
new places spreads their cultural ideas and values, which contributes to the
homogenization of people.
Urbanization
Brazil’s ecumene
is rapidly shifting from rural areas, to urban areas. Urban areas provide more
educational and workforce options, compared to those provided by rural areas.
Presently 81.7% of the Brazilian population is concentrated in urban areas,
such as Rio de Janeiro and Sao Paulo (Raul Gouvea, 2004). Brazil’s urban
development has occurred mainly inland. Of the 31 metropolitan centers in
Brazil, with population over 1 million, 19 of them are inland. This inland
migration is reflected in business; 40% of Brazil’s top 500 companies now base
their operations inland, from 20% in 1970 (Raul Gouvea, 2004).
The shift of
people from rural to urban areas is reflected in the decline of agriculture. In
the 1950’s agriculture represented 25% of the GPD, currently it is less than
10%. This dramatic decline represents Brazil’s shift from an agrarian society
to a manufacturing, resource and serviced based economy (Raul Gouvea, 2004).
The loss of
agriculture poses many problems for a rapidly urbanizing society. Brazil’s
strategy to reduce foreign imports and achieved sustainability is contradicted
by its loss of agriculture. Because the growing urban population does not
produce food, it requires food imports more everyday due to diminished domestic
product.
Urban
development is resource intensive due the vast quantities of materials required
for construction. Brazil has been blessed with an abundance of natural
resources, which promote the activities of development. The abundance of
natural resources at Brazil’s disposal enables the activities of urban
development, providing a vast range of materials within close proximity.
Role Transition
Brazil is
transforming from a peripheral country into a semi-peripheral country. This transition
is partial marked by reduced foreign exploitation of labour and resources, and
increased GDP.
The GDP of
Brazil in 2001 was 502.5 billion, dominated by the service sector at 56%
followed by industry at 35% (Raul Gouvea, 2004). This change in GDP contribution
from resource extraction shows Brazil has reduced its exploitation by other
countries.
Japan’s imports
from Brazil still consist of resource goods, but Brazil’s imports from Japan
outweight their exports. Brazil’s exports to Japan valued 4.3 billion, versus
their imports of 4.6 billion, in 2007 (Japan Ministry of Foreign Affairs,
2008). The greater value of imports versus exports shows the increase in buying
power of Brazil’s economy. Brazil’s relationship with a core countries like
Japan show its transformation into an economic power, blessed with resources a
growing population.
Conclusion
As the world
expands in population, the distance between places becomes smaller. Brazil’s
interconnectedness with Japan represents a diverse relationship. Their
relationship is characteristic of many countries around the world. Two
countries on different sides of the world become connected through trade,
migration and cultural identities. Globalization represents the shrinking
cultural differences between Japan and Brazil. The urbanization of Brazil
represents the progress it has made due to relationships like it has with
Japan. Foreign investment has contributed to infrastructure development, and
injected jobs and capitol into the Brazilian economy. It the connections Brazil
has with countries like Japan that have helped transition Brazil’s role in the
world system.
Word Count: 1
400 words
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