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Then, Mercosur began on January 1, 1995. Control of inflation was perhaps the single most important development contributing to Brazil’s recent economic and political stabilization. By containing inflation and promoting fiscal reform, the Brazilian Government inspired domestic and foreign investor confidence and spurred internal consumption and foreign investment levels. Extensive legal reforms followed to help Brazil’s legal framework keep pace with rapidly changing economic realities, particularly enhancing foreign investment opportunities. This paper will explore the unique historical, cultural and economic aspects of Brazil that have contributed to its maturity and have made the country a positive foreign investment in today’s competitive global market...
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