Brazil exchange rates regime history and analysis from 1960 to 1975 Essay

Brazil exchange rates regime history and analysis from 1960 to 1975 (economics paper) - Essay Example This period was also characterised by import substitution strategy that was aimed at improving balance of trade, however the policy maker later realised that the adjustments would be even more effectively managed using the exchange rate system. During the period Brazil exports become more competitive and there was slow inflation in the economy and it seized to be termed as a developing country, there are various reasons that led to the resistant of the policy makers to change the exchange rate regime. There are three types of exchange regimes and they include fixed exchange rate, float exchange rate and pegged exchange rate regime, the fixed exchange rate regime is that which the currency of a country has direct convertibility to another currency. The float rates is a regime that involves letting the supply and demand in the market to determine exchange rate but the economy can intervene in order to avoid depreciation, finally the pegged float is a regime where the currency is pegged to some value which is periodically adjusted or fixed. In 1968 pol Brazil exchange rate regime: In 1968 policy makers introduced a crawling peg system which was based on frequent and small adjustment in the exchange rate, the frequent adjustments were made to signify the changes in inflation and prices in Brazil, this exchange rate regime led to long term stability in the Brazilian currency the real and for this reason the policy makers did not find any reason to change the exchange rate regime at the time. The pegged exchange system reduced uncertainty in exchange rates of the currency, this is because the individuals would have the knowledge that the currency would not devalue or revalue by a large margin and for this reason future production was made easier regarding production. This system that Brazil adopted also reduced speculative attacks associated with other forms of exchange systems, however the economy could not get speculative gains from this type of exchange rate system. During this period also Brazil experienced slow inflation and prices become more competitive in the international market, this system also allowed the country to improve its balance of payment and therefore policy makers did not have the need to change the exchange rate regime due to the high growth experienced. During this period the policy makers believed that the balance of trade was best managed through trade policies such as tariffs, subsidies and import control, for this reason therefore there was increased industrial expansion to undertake import substitution and this ed to spectacular growth in brazil, Brazil exports become more competitive in the international due to slow inflation in the economy and Brazil seized to be termed as a developing country. Due to this strategy therefore the policy makers did not concentrate much on the significance of the exchange regime to manage balance of trade. However the policy maker later realised that the adjustments would be even more effectively managed using the exchange rate system. Before 1971 the US had not floated its currency and because

Factors Affecting Marketing Strategy Term Paper

Factors Affecting Marketing Strategy - Term Paper Example In this sense, Dr. Thunder can be asserted as being a low-involvement brand. There have been no major advertising campaigns run by Wal-Mart to market Dr. Thunder as a brand. For this reason, the recommended marketing strategy is a newly developed. The reason behind developing a new marketing strategy for Dr. Thunder is to highlight the subliminal attraction of the brand, as the brand name is similar to internationally popular Dr. Pepper. Market Size, Performance and Growth From the review of U.S Census on the size of the market segment to which the marketing campaign of Dr. Thunder would target, it has been found that the marketing campaign would target around 3 million Americans. Over the past 10 years, it has been noticed that the target market segment has grown for about 7.7% (United States Census Bureau, 2013). Moreover, the target segment would expand by another 8.9% in the coming ten years. Upon understanding the dynamics of soft drink industry in USA, it is found that the foll owing three factors have an impact on the consumer behavior of this industry: 1. The top most influential factor in this regard is health concerns amongst consumer circles. Consumers perceive that carbonated or fizzy drinks have wrong affects on their health and thus avoid drinking soft drinks at all or usually purchase these drinks. 2. Size and design of the packaging also influences consumer behavior. If a soft drink is offered in a glass bottle, it is not possible for customers to take it home or travel along with a bottled soft drink. On the other hand, a canned or plastic bottled soft drink would be seen as facilitating and thus consumers would prefer to purchase it. 3. Lastly, the soft drink industry in the world is perceived as the most competent and saturated industry. Presence of single handedly market share sweeping companies like Pepsi and Coca Cola makes it difficult for other brands to survive in the market (Mise, Nair, Odera, & Ogutu, 2013). Reference Group and Diffusi on of the Marketing Campaign Soft drink brands are usually more popular amongst younger target audience. For this reason, it can be asserted that the most influential reference group for Dr. Thunder would be the social circle of teenagers. As the majority of the US population is comprised by young generation, and the social circle of young audience is identified as the most influential reference group, it can be suggested that a marketing strategy focused on targeting a younger audience would achieve the quickest diffusion rate. Moreover, adopting a deterministic model would help Wal-Mart to the state of acceptance by a particular segment of buyers of Dr. Thunder and overcome the flaws in production and marketing strategies. The diffusion determinants pertaining to Dr. Thunder are the perceived health advantages to customers, low riskiness in purchase, easy to use packaging of the drink and ability to quench thirst (Saha & Theingi, 2009). Diffusion Enhancement Strategy To enhance th e diffusion rate for Dr. Thunder, the marketing strategy would primarily target college and school students. Moreover, the target audience belonging to the age bracket of 25-30 years would also be focused in the marketing strategy. To attract the attention of the target audienc