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Other barriers such as: unemployment, political violence and crime also exist.
In 1999 there was a devaluation of the REAL brought on by deficits in the budget, which created problems within the Mercosur and the trading block for Brazil. Brazil then introduced emergency taxes to cut the national debt, which exceeded 50% of the GDP. Brazil was then on its way to recovery repaying a $41 billion dollar IMF loan and the debt began to decrease. (CultureGrams, 2003) In 2001 however, Argentina defaulted on its international debt, which led investors to feel uncertain about Brazil’s economy. A new US backed IMF loan of $30 billion dollars came as a result in 2002...
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