Brazil each other’s economic value chains (“Moving beyond dispensable:

    Brazil is located in the South America where they’re native to many natural resources and raw materials. A geopolitical relationship with other countries is important because it leads to a positive investment strategies. Foreign investment is known as the action or process of investing money for profit or material result which helps the economy of the countries. These two concepts are significant for a country to develop economically and even politically as well. Brazil’s economic and geopolitical relationship with Russia and the United States leads to positive investment strategies. Brazil would invest in an oil company in Russia since it’s a resource that Russia has an abundance of and that Brazil lacks. The United States also has one of the more oil reserves which Brazil can benefit from which leads to believe that Brazil can invest in oil in the U.S. as well. Even if Brazil does have oil, it’s necessary for the country to import more because of the high demand for it. Brazil and Russia, apart from being parts of BRICS, the two countries go way back. In the year 1828, they established bilateral relations which includes agreements that have or relate to affecting two sides. From them, there hadn’t been any conflict and have just improved their economic relations. Brazilian and Russian officials signed five bilateral agreements recently that increased cooperation in certain regions. With these agreements, Brazil and Russia’s goals are to strengthen their trade and economic relations. Apart from this, the agreements was meant to improve cooperation between the two countries on issues such as oil and natural gas exploration (“Brazil and Russia sign joint statement and bilateral cooperation acts”). This leads to the thesis where Brazil will invest in corporations in Russia since it’s something they have a lot of.     The United States and Brazil have had a rollercoaster of economic and political relationship. The U.S. was the first country that acknowledged the Brazilian independence. This country was also the only one from South America to send troops to fight the Allies in WWII.     Recently, relationship between the two has been distant because of the recent revealing of U.S. espionage against Brazil. In other words, the U.S. had been spying on the government of Brazil. These two countries have an important trade relationship, however, their economies aren’t integrated into each other’s economic value chains (“Moving beyond dispensable: Strengthening U.S.-Brazil relations”). This meant, that even if they do trade, their economies aren’t affected by each other’s situations.     Brazil and Russia, which are two BRICS countries, share a foreign investment with one another. Each of these countries economies plays a role in their investment. Specifically, Brazil investing in Russia, which is Brazil investing in corporations from Russia. Russian Prime Minister Dmitry Medvedev noted: “Brazil is our strategic partner in Latin America. Our relations are based on a long history, mutual respect and trust. We have a shared vision of the current situation in international relations. We work together in various international formats, including BRICS.” In particular, he claimed that Brazil has become one of the most important suppliers of agricultural and food products to the Russian market (“Russia-Brazil: Strategic Partnership Is Expanding”). In other words, their relationship with one another has increased in providing food for each other so they’re not left in poverty and allow their economy to decrease. According to experts in the national chambers of commerce, Brazilian investment in Russia could potentially reach the level of 15 billion USD, and the Russians could sink at least $25 billion into Brazil. The primary sectors already designated for infusions of capital are: transportation, energy infrastructure, forestry, environmental preservation, and the chemical and food industries. It must be emphasized that Brazilian financial institutions are specifically interested in increasing the export of funds intended for loans and investment in national currencies. The Russian Central Bank is currently studying the practical challenges associated with the transition to the use of the Russian ruble and Brazilian real, so they would be no longer pegged to the US dollar.    In addition, Brazil’s state-owned Petrobras forecasts $17 billion in investments and $8 billion in asset liquidation over the course of 2017. The results that were included for the second quarter of 2017, planned for the refinance of $13 billion in debt, while also creating $27 billion in new revenues. Executives told Reuters that the company would not considering selling its debt in international markets (“Brazil Plans for $17 Billion In New Investments By 2017 End”). From this, one can infer that Brazil doesn’t want to be left in debt by investing in national markets so that their economy doesn’t decline. This year could also mark the return of dividend payouts, which would be the first time since 2014, if Petrobras ends 2017 in the black. Chief executive Pedro Parente said, as quoted by Reuters, that “We really are keen to start paying dividends as fast as we can.” The troubled company reported a net profit of $1.417 billion for the first quarter of this year, up from a net loss of $318 million for the year-earlier period. The company attributed the positive performance to 72-percent higher exports, at 782,000 bpd, at higher prices, as well as to lower oil and gas import costs. The latter was a result of higher production of oil and gas at home, which led to a 40-percent decline in imports. From this, it can be inferred that although there was a 40-percent decline the in products being brought into their country, the company increased and performed a 72-percent higher exports. With the percentage that is left, they can invest oil from Russia which will help their economy increase even more. Once this investment increases, Brazil’s economy will increase and so will Russia’s because they’re making more profit.     Because of the global liquidity and some solid central banking by Brazilian and Russian monetary policymakers, the two countries are coming back to life. Only, Russia has more of a spring in her step, with a badly sprained ankle. While their economies are improving, the market prefers Brazil. Nine Brazilian companies did an IPO this year, raising $4.87 billion. Nexa Resources listed on the NYSE in late October, raising $496 million and coming in at the lower end of the pricing range. Only four Russian companies did an IPO this year, raising around $2 billion. “Commodities tycoon Oleg Deripaska listed his En+ Group in London last week, accounting for nearly all of the money raised for Russian entities this year at $1.5 billion” (Russia Versus Brazil: A Tale Of Two Countries In Crisis). It also came in at the lower end of the pricing range. This year, Brazil billionaire Abilio Diniz IPO of Carrefour was about $100,000 bigger than Russian billionaire Oleg Deripaska En+ Group IPO, raising $1.6 billion. Both came in at the lower end of the suggested pricing range. You can’t compare inflation between them, because Brazil is worse, historically speaking. Inflation is coming down in both countries, and so are interest rates. Brazil interest rates are only slightly higher than Russia’s and not indicative of any particular strength or weakness in the economies. If Brazil’s economy was growing, Temer’s approval rating wouldn’t be 3%. The dollar is weaker against the ruble, 3.6% weaker this year, while the Brazilian is basically flat against the dollar this year. The ruble owes its strength to oil, and the Brazilian currency is steady. Brazil and Russia have been in geopolitical cooperation for a long history. Their relations date back to 1945 where the Cold War has just started to unfold. During this time, Brazil and USSR were only involved with commercial trade and cooperation of minimal significance. This was only the beginning as their partnership would grow much deeper. After the fall of the USSR and the founding of Russia, their influence on one another increased further. This led to the Brazil-Russia Cooperation Treaty that was signed in 1997. As time went on they cooperated on other areas such as military and technology. With this, their militaries were strengthened and space exploration for the Russians become more doable. Later on, Brazil’s space program was also able to benefit from this collaboration. Russia was more interested in space exploration than Brazil, but both were eager to boost their military power. Adding on to their collaborations, these two nations have also signed a declaration to help combat climate change and its effects on the world. With Russia’s freezing cold winters, they needed to stock up on food and other agricultural goods. Brazil was a perfect partner to aid Russia as they had a stable warm climate and produced crops at a stable rate. Russia become one of Brazil’s top buyer of agricultural goods. With this Russia did not have to worry about the unfarmable cold winters and relied on the market instead for their food products. This increased the trust between the two countries and allowed them to depend on each other when in tough situations. These times were very profitable for both countries and allowed them to thrive and gain power steadily.Times have changed and these countries needed to adapt to the current situation. The United States was gaining power that overwhelmed other countries. This led to the creation of the BRICS association in 2006. With these countries working together, their influence grew dramatically and showed promise. They formed to weaken the impact and domination of the United States while at the same time support each other and their interests. Brazil’s main goal was to become a voice in the world’s affairs and leave an impact in the world.Brazil has many things imported because of the fact that they lack the object. These things include motor vehicles, vehicle accessories and parts, medicines, fertilizers, and most importantly petroleum oil. Some believe that the country is self-sufficient on oil production, but they don’t have quality petroleum to produce specific products that use petroleum oil as its base. (“Products Imported to Brazil”). This leads to believe that Brazil should invest in Russia because of their oil abundance. In December 2015, Russia produced an average of 10.83 million barrels of oil per day. It is known to be one of the countries that produces the most oil in the world. Brazil also has many reserves but compared to its country size, it’s not enough for their demand. The use of light oil is important because of things such as gas kitchen and gasoline. However, for domestic use, heavy oil is needed (“Importation of Oil in Brazil”). Only 30 years ago, Brazil depended on wood for many of its energy needs. Apart from this, Brazil has poor railway and river systems, which because of this, Brazil depends on overland routes for transportation and commerce (“Lack of Oil Angers Brazilians”). Because of this, it would be beneficial for both countries if Brazil invested money in a corporation in Russia since they have a profusion of it. The industries in Brazil as well as the citizens, would have oil to complete their daily needs whereas Russia is obtaining money in return.    For this plan to take work there needs to be foreign policies to protect their self-interests which would benefit each country and their own desires. These two countries have signed a treaty for visa exemptions in 2008. This will aid in their trade in investment as this treaty allows for more freedom between these two nations. These two countries have shown to have great interest in military affairs. They have shared a long history of the exchange of military arms and weaponry and have invested billions to trillions in military matters. More than anything else, Russian relations with Brazil in the Putin era have been characterized by trade and increasing amounts of it. While Russian-Brazilian relations can be traced back to the 19th century, it was not until 2001 that the two countries first reached $1 billion in annual trade. Since then, trade growth has only increased. Their strategic investments in one another have displayed their importance in military power and have not stopped in ending this relationship. The two nations still to this day are converging in military affairs to gain power (“The New Face of Russia’s Relations with Brazil”). Brazil has expressed their desire to become a world leader and help create world peace. Their desires are much larger than most, they want to become a country that has a voice become in par with the United States in terms of influence and power. Adding on, the agreement to help aid in slowing down the disasters of climate change shows their interest in helping major world issues. This also shows that they are not only looking to benefit themselves but help improve the world as a whole.       Furthermore, the economic relationship between Brazil and the United States with them investing oil from Russia is significant to discuss. Brazil should be interested in investing in an oil company from the U.S. The new discoveries lie off the southern coast of Brazil, south of Rio de Janeiro and southeast of Sao Paulo. These oil and natural gas deposits lie deep below the salt layer of the ocean floor. The resulting high pressures make the resources difficult to recover, but production is still expected to be profitable. The estimated recoverable resources are vast, and their full development will require significant improvements in Brazil’s energy transportation infrastructure (“Brazil’s Oil Production and Trade with the United States”). Long-term growth in Brazil’s Oil and Gas (O) sector remains strong because of proven below-ground resources, a developed and sophisticated O sector, and a diversified economy. The 2017 estimate for purchases in Brazil’s oil and gas equipment and services market, including the upstream, midstream, and downstream segments, as well as maintenance and operations (M&O), is approximately US$21.5 billion. Of that amount, US$10.5 billion will likely be imported, with approximately US$2.6 billion being imported from the United States, according to CS Brazil estimate (“Brazil – Oil and Gas”). It can be seen that the U.S. is exporting oil to Brazil in order to allow their economic relationship to increase so that both countries don’t fall behind.     For many centuries, Brazil and the United States have had a significant geopolitical relationship. These countries are the largest democracies in the Western Hemisphere where they share basic values. This includes rule of law, the focus of individuals on social affairs, and offering equal opportunities to all. Overtime, their geopolitical relationship had been the same until the incident of espionage. In this case, the President Dilma Rousseff as well as her assistant, secretary, and chief of staff were targeted in this. The U.S. was listening in her palace office and even the phone in her jet. This lead to their relationship taking a downfall. A few years later, however, President Barack Obama, had confirmed that the spying was done with which led to the relationship improving. Obama reassured President Rousseff that because the spying would stop, it would lead to the U.S. having more investment in Brazil. The only way that the Brazilian president accepted this is by making sure the espionage had ended (“Wikileaks: US ‘routinely spied’ on Brazil”). Last year, the two countries were reported to be working together to address the outbreak of the Zika virus in Brazil and other Western Hemisphere nations. Other areas of engagement include trade, security, racial equality, and the environment.     The United States is one of the world’s biggest producers of oil. They are abundant and are dominating the world’s oil market. But the question is how will this benefit Brazil as a country? Brazil a country with a stable source of oil could benefit from them. Brazil needs enough oil to satisfy the national oil demand which with the current supply, will not be enough to keep up. But if Brazil were to invest in the United States’ oil companies this situation can be relieved. It would benefit both countries as the United States will be receiving a large sum of income and funding, while Brazil is stabilizing their own economy at the same time.An oil company that Brazil can invest in is Chevron corporation. This company is known to be very reliable and is profitable. Chevron Corporation is an American multinational energy corporation. One of the successor companies of Standard Oil, it is headquartered in San Ramon, California, and active in more than 180 countries. Chevron is also engaged in every aspect of the oil, natural gas, and geothermal energy industries. This proves that this company is trustworthy and dependable. One of the central drivers of Brazilian economic growth has been the production and export of natural resources and their products. It is also likely to have a positive effect on U.S. exports of transportation equipment to Brazil, since the demand for transportation equipment generally increases as liquid fuel costs decline. The increase in the volume of domestic crude oil production could also have significant effects on trade in the opposite direction, from the United States to Brazil. It is likely to have the most direct effect on U.S. exports of drilling equipment from the United States, since the demand for these products in Brazil is derived from oil production. This means investing in oil is a priority for Brazil as it is one of their major sources of income. Without a high oil income and exportation, Brazil will be losing money at a quick and steady rate. With the investment of oil companies in the United States, we can be sure that Brazil will be able to push further and become a powerful country.    With the investments into new companies, this implies a lot of new changes and impacts on the country Brazil. With less to worry about for oil issues, there will be more time, effort, and money to focus on other problems. Cases like the mass amounts of people living in poverty and the poor infrastructure. Solving major issues that the people are facing could reshape the Brazilian nation, including its pattern of trade with the United States and the rest of the world. They will become more self sufficient and reliable.       To summarize, in order for Brazil’s investment to increase, Brazil will invest oil from both Russia and the United States. For Brazil to invest in Russia, they’ll buy oil from Russia’s company in order to fulfill their needs. This will be beneficial for both countries because one country is investing in another to gain profit. In addition, Brazil will also invest oil from the U.S. so that their investment relationship increases because Brazil is investing to also gain profit. From this, both of these two countries relationship increases, economically, because of exports and politically, when the government gets involved into making decisions for the countries, signing treaties, and strengthening the military.