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Question about 1929 Crisis in the United States of America and the World

History

Originais Teachy

1929 Crisis in the United States of America and the World

Hard

(Originais Teachy 2024) - Question Hard of History

The Crisis of 1929, also known as the Great Depression, was not limited to the United States, where it originated, but had global repercussions, affecting the economies of various countries differently. In Brazil, for example, the impact was intensely felt, especially due to international economic interdependence and the vulnerability of Brazilian exports. The disintegration of the international market, the fall in prices of primary products, and the difficulties in obtaining external credit were just some of the challenges faced by the country. According to the Brazilian philosopher and economist Roberto Campos, 'Brazil, heavily dependent on its exports, suddenly found itself in need of restructuring its internal economy, facing the impossibility of maintaining the import and export standards in place before the crisis.' Considering the historical context and Roberto Campos' analysis, discuss how the conjunction of factors such as the post-World War I period, the American overproduction policy, and the prevailing economic practices in Brazil contributed to exacerbating the repercussions of the 1929 Crisis in Brazilian territory.
a.
Contrary to other countries affected by the 1929 Crisis, Brazil did not suffer from the devaluation of its exports, keeping coffee and other commodities prices stable and attracting foreign investments.
b.
The 1929 Crisis strengthened the Brazilian economy, which took advantage of the reduction in prices of primary products to increase its participation in the international market and diversify its exports.
c.
Brazil's economic practices, after World War I, focused on intense industrialization, reducing the country's dependence on exports of primary products, mitigating the effects of the 1929 Crisis.
d.
The American overproduction policy did not have a significant impact on Brazil, which maintained a robust and diversified economy, resisting pressures from the international market of primary products.
e.
The American overproduction policy generated surpluses that pressured the prices of primary products, unfairly competing with exporters like Brazil. Additionally, Brazil, already vulnerable due to international economic dependence, maintained economic practices that left it particularly exposed to the effects of the 1929 Crisis, such as the coffee valorization policy and low productive and industrial diversification.

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