Brazil'S Excessive Currency Appreciation Leads To Shoe Factory Relocation

The St Paul Federation of industries (Fiesp) pointed out that

Over the past 2 years, Brazil's demand for imported goods has increased by about 2 percentage points, from 19.6% before the outbreak of the international financial crisis in 2008 to 21.2% last year.

Alliance chairman Scalf (Paulo Skaf) said that in the late 1980s, the pformation industry accounted for 27% of Brazil's gross domestic product (GDP), which now accounts for only 16%.

The high value of Brazil currency and the high cost of domestic production have led enterprises to move their production lines to other countries or even to shut down Brazil factories.

Vulcabras Azaleia, for example, decided to set up factories in Asia (possibly India).

In the absence of equal conditions and foreign market competition, Brazil

Last month, PHILPS (Philips) ended its operation in the northeast city of Recife for \43, and directly imported products from Asian and European factories to supply the Brazil market, on the grounds that local production costs were high and the competitiveness of products was weakened.

The decision of PHILPS caused about 500 workers to lose their jobs.

Novelis, headquartered in the United States and the world's largest aluminum producer, closed its factories in the Salvatore metropolitan area in the northeast of China last year, killing 500 workers on the eve of Christmas.

Novelis points out that the owner of the plant is because