Lecture discusses exports for MBA students at ESEG.

The students of MBA in Business Management On December 1st, they had the opportunity to attend the lecture 'Evolution of Brazilian exports to China and Japan: patterns of specialization and competitiveness', given by Professor Dr. Mateus Silva Chang (Keio University and Yokohama University).

The special class was broadcast live from Japan to students at ESEG – Faculdade do Grupo Etapa – and focused primarily on topics such as:

• The share of Brazilian exports in the global context;
• Brazil's policy of acting as a global player;
• Evolution of Brazilian exports to China;
• History of trade relations with Japan and China;
• Changes in patterns of specialization and competitiveness;
• Study on the characteristics of economic activity sectors in Brazilian exports to Japan and China.

According to ESEG professor Paulo Izumi, the topics covered were fundamental in broadening students' perspectives on a globalized and increasingly competitive international context, with particular interest in trade relations between Brazil and Asian countries. "The lecture prompted reflection on the mechanisms of the external economy and its influence on business and corporate strategies, something of great relevance for students in the MBA in Business Management program," commented the professor.

Speaker Professor Mateus Chang discussed the evolution of Brazilian exports in the 1990s and 2000s and also made some projections for the present day. During this period, the country sought to expand trade flows with other nations, as well as diversify its trading partners, with the aim of consolidating Brazilian international trade and reducing the country's dependence on certain trading partners. "In this context, the countries of East and Southeast Asia presented themselves as new frontiers to be explored by national trade, with China and Japan being the main trading partners," said Chang.

After a brief overview of the history of Brazil's trade relations with these two countries, data on the specialization and competitiveness patterns of Brazilian products in these two markets were presented. It was found that the pattern of Brazilian exports to these countries has become more specialized in products with lower technological intensity, for which the country has a comparative advantage and whose contribution to the Brazilian trade balance is positive.

According to Professor Mateus Chang, Brazilian exports to China and Japan have become more concentrated on primary products and those based on natural resources, revealing that the complementarity between the Brazilian and Chinese/Japanese economies was a key factor in defining the pattern of Brazilian exports to these countries. “The need of both countries to import natural resources and raw materials for their production is what defined Brazilian exports. On the other hand, the concentration of exports in such products is advantageous, since by having a certain advantage over its competitors, Brazil can export them at more competitive prices, overcoming competition in the importing countries' markets,” he explained.

The lecture concluded with an important question for students to reflect upon: given the observation of a Brazilian export pattern increasingly specialized in products for which the country has a comparative advantage but which possess low added value, what would be the best policy for Brazil? The suggestions were to continue with an export agenda concentrated on products with lower added value, but for which the country is competitive, or to encourage a gradual increase in the technological level of exports to China and Japan. At the end of the class, the students had the opportunity to express their opinions to Professor Paulo Izumi regarding the topic and the questions presented.