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Japan has developed an impressive local automobile industry (Toyota, Subaru, etc.), South Korea as well (Hyundai), India is trying to do so (Tata). Most of the industrialized countries created their national car firms (France, Italy, USA, Britain, Sweden, Germany, Russia).  Brazil and Argentina developed a huge automobile industry but through the investment of the foreign companies.  Discuss why Brazil and Argentina didn’t create their own local automobile brands.


            The first global manufacturing industry is the world automobile industry.  This industry is the largest global manufacturing industry due to the fact that the major car producers assemble and sell cars in all regions of the world.  Many developing countries that are trying to become industrialized are creating their own national car firms.  Japan has developed national car firms such as:  Toyota, Lexus, and Subaru.  South Korea has also developed Hyundai.  Also, India has developed Tata.  Most of the industrialized countries have already created their own national car firms.  France, Italy, USA, Britain, Sweden, Germany, and Russia all have their own national car firms too.  Brazil and Argentina didn’t create their own local automotive brands because they didn’t have the push that other foreign companies did to become more industrialized in the manufacturing of goods and due to the implementation of import substitution industrialization policies.

Brazil is now home to the tenth largest automotive industry and is home to the largest number of car assembly plants in the world.  The automotive industry is very important to Brazil’s GDP, considering it comprises over 12 percent (brazil ox). However during the time that other countries were developing their automobile industries, Argentina and Brazil were implementing the method of economic development known as import substitution industrialization.  According to the dependency theory, countries are controlled by the world market and some in turn become underdeveloped because the economies of other countries advance and grow.  This ISI method attempts to expand the economy by increasing the amount of production nationwide.  The government assisted many producers during this time to produce alternative products by banning some imports and charging foreign companies much higher tariffs to bring their products into Argentina and Brazil.  This allows the nation to become more independent of other nations and world market fluctuations because it can now supply itself with goods, as well as export products to other countries with high demand.  However, at this time, Argentina and Brazil did not have the technology, know-how, industrialization, and manufacturing capabilities in the car industry to create their own local automobile brands.  Since Argentina and Brazil could not benefit from making their own local automobile brands during the time of ISI they had to look for other sources of benefits in the industry for their country.  This came in the form of foreign investment. 

            A major component in Argentina’s and Brazil’s ISI method was direct foreign investment.  Part of this policy allowed foreign investors to create green field ventures in Argentina and Brazil with many obvious benefits, such as market access and a great exchange rate for most countries.  These ventures also benefited the hosting countries.  The foreign investors were forced to agree to sharing and transferring technology.  They were also required to train the labor force, which in turn raised the educational and skill level of a large portion of Argentine and Brazilian workers.  Another important benefit to the hosting countries was the regulation on the percentage of revenues that could be repatriated.  This restriction on profit repatriation led the foreign investors to supply capital and investments to local companies and industries.

            Import substitution industrialization was successful for Argentina and Brazil for the beginning of the policy implementation; however, ISI become unsound over a longer period of time because it did not produce the intended results.  In theory, it should have led to an explosion of entrepreneurs, new ventures, and industrialization expansion.  In reality, many of these advancements and ventures were being created solely by the upper class population.  This isolation caused the growth to be centralized on the upper class rather than expanding to benefit the entire population and economy.  

Brazil instituted what was referred to as the auto plan in 1956.  This plan fell under the import- substitution development effort that they employed during this era.  Under this plan, all automotive imports were banned and all those transnational companies that were previously located in Brazil were forced to either leave the market or begin to produce cars with 90%  Brazilian made parts.  The implementation of this plan was not easy, considering Brazil currently had a very small industrial base and had not yet acquired the experience and knowledge needed. 

Since the beginning of the 20th century, foreign automobile companies have been assembling cars from what are called “semi-knocked down kits.”  This system arose again with the implementation of ISI in the mid1950’s.  There was complete foreign ownership of the automobile companies, and eleven foreign companies began production in Brazil.   

In the past the car industry in Brazil has endured problems of low productivity and outdated methods. During the 1980’s the automobile industry was especially hindered by the lack of competition and low productivity growth.  Currently Brazil is developing their automobile industry, hoping to become an automobile superpower. In order to do this they need to reach a more proficient level of production to become competitive among exporters.  However, current foreign car companies within Brazil will not allow local automobile brands to come into the market.  This matter benefits foreign car companies by decreasing competition if they succeed in monopolizing the car markets.  Since the current foreign car companies have much power from an excess of money it is easy to control the car markets in both Argentina and Brazil.  If the auto plan of 1956 becomes more beneficial, than Brazilians can start to develop their automotive industry more as foreign companies are being affected more.  Foreign car companies will rethink their investment in manufacturing their national car firms in foreign countries, and look at manufacturing the cars in their local country and then selling directly to foreign countries.  This allows for local automotive brands to be created in Brazil without as much interference from foreign companies.  However, there are still the start-up values that will need to be considered when creating a local automotive brand that must be overcome.

As an overview, Argentina and Brazil didn’t create their own local automotive brands because they were underdeveloped in the manufacturing and industrialization of automobiles when industrialized foreign companies were booming, the effects of ISI bringing in foreign investors, and the still present ability of foreign companies to continue to keep the possibility of local brands out of the market due to their economic influence. 



Works Cited:




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Brazil and Argentina have been, and still are, predominantly Catholic. Since 1980 some varieties of Protestantism (mainly Assemblies of God, God is Love and the Universal Church of the Kingdom of God), have grown very quickly to the point that 15% of Brazilians and near 10% of Argentines are now Protestants.  i)Explain some of the causes for this extraordinary growth; ii)describe the strategies followed by these churches to attract new believers; and iii)analyze the possible consequences of this shift.


Eighty percent of Latin Americans identify themselves as being under the control of the Catholic Church.  This was initiated by the Spanish and Portuguese colonization in the 1500’s (UIUC).  The Catholic Church in recent decades is no longer seen as a colossal force.  The Protestant religions, specifically Assemblies of God, God is Love, and the Universal Church of the Kingdom of God, have grown tremendously in the last few decades in Argentina and Brazil.  Protestantism has spread so much that many scholars are regarding this movement as a new religious “Reformation” similar to the Protestant Reformation in Europe in the 1500’s (Forerunner). This growth has been predominately attributed to Argentines and Brazilians converting from their previous Roman Catholic or Umbanda faith to Protestantism. 

This wave of conversions has been caused by numerous economic and social factors.  Notably, people of the lower classes in Argentina and Brazil have begun to migrate within their country in search of an improved lifestyle.  There are large populations that have migrated to formerly desolate areas that are rich in agricultural potential.  There has also been a large influx of migrants towards the slums.  In these new areas, they are in need of a connection with their new community and spiritual worship.  The Protestant churches are simply quicker and more efficient at responding to this demand for fellowship than the Catholic Church.  There are number of reasons for the swiftness in which evangelical sects can incorporate themselves into these communities. First, pastors of the Protestant faith are able to receive their training to do work and assist converts in these countries in a few months; however, Catholic priests must spend multiple years in seminary school before being able to do the same work.  Logistically speaking, this difference in training methods allows for far more available pastors than priests.  Also the evangelical churches are willing to conduct their ministries out of more convenient and approachable locations, such as commercial real-estate venues.  

Another reason for the growth of Protestantism is that the Catholic Church has become divided.  One side is the orthodox political and religious doctrine that supports the preservation of the social and political status quo.  The other side is a doctrine that is based more on the philosophy of liberation theology.  This doctrine uses the Catholic doctrine along with a new need for social activism, and tries to address the social inequalities that have become prevalent in Latin America.

Civil war has also caused major divisions in the Catholic Church throughout the 1970’s and 1980’s. Differences in political opinions divided the clergy between leftist rebels and right wing government (Chu).  These divisions weakened the influence of the Catholic Church and gave evangelical sects the opportunity to establish a presence.

Another reason for the growth of Protestantism is the need for a less conservative and systematic approach to theology and day to day practices than Catholicism.  The Catholic Church takes a more rigid stance on issues that occur on a daily basis and affect most of the population.  For example, the Church takes a zero tolerance approach to the use of unnatural birth control methods such as birth control pills and condoms.  This renunciation of birth control alienates the majority of the youth in the Church.  Another doctrine of the Church that distances the older population of Catholics is the fact that divorce is not allowed in the Church.  The Protestant religions are looked upon as being more contemporary than the Catholic Church because they allow women to more actively participate in the services, particularly in the option to become a minister.    

The overall informal demeanor of the evangelical churches also helps to attract more followers than the routine ceremonies involved in the Catholic mass.  Protestant churches tend to have more singing, dancing, and opportunities for participation within the congregation.  The style of worship also promotes a more direct and personal relationship with God.

Over the past several decades, Protestant evangelism has made much success in converting Latin American peoples away from Catholicism (UIUC).  Alongside the sheer number of Protestant evangelists, the growth in the Protestant religion can also be attributed to the way in which the Protestants present and market themselves.  Many of these churches operate out of store front buildings, school, and even homes that are often seen as more comfortable and less overwhelming than a Catholic church.  Protestant sects are also more proactive in employing a variety of marketing methods to spread their ideas and name.  The evangelic churches also have enabled the use of mass media to attract new members.  Many of their church services are recorded so that they can be broadcast on television and on the radio.  Evangelic churches are also more progressive in both their music styles and their liturgies. The use of more pop-style music and contemporary views appeals to the youth of these nations.  The Protestant religion also provides a number of small groups and weekly activities that allow the members to meet in order to communicate both socially and spiritually.  Some Protestant groups also attracted more members by addressing issues such as lack of health services and infant mortality. 

Also, to attract new believers it was part of the Protestant mission to translate the Bible into many languages.  This makes the Protestant belief available to anyone.  Using the translated Bible into many different indigenous Latin American languages the Protestants tried to use their activism to address problematic issues such as infant mortality and the lack of health services.  

Protestantism is also seen as a growing belief among the lower classes in Latin America. Due to the extreme social inequalities, the lower classes especially criticize the excessive amount of money spent on rituals (public and private), drinking, and eating within the Catholic Church.  Protestantism downplays rituals, which are seen as foolish.   This becomes more appealing in the eyes of the lower classes due to their social structure.  However, there may be consequences in the shift from the Catholic Church to a new Protestantism that challenges the Church’s domestic practices, for example extending the use of birth control. 

            Historically speaking, the Catholic Church has had a great deal of economic and political influence.  However, with the large shift away from the Catholic Church towards various protestant religions, the Catholic Church is losing political influence and losing political members as well as economic power. 

One question that has also been discussed by many academics is whether this growth of evangelical Protestantism will result in increased democratic participation or whether it will reinforce authoritarian customs and traditions.

Also, with the shift form Catholicism to Protestantism will bring growing tensions between the two.  This could possibly create a religious war between the groups that could spread throughout the world.  The violence that could occur from this religious war has the capabilities of destroying the political and economic structure of both Argentina and Brazil and needs to be avoided.

Even though there are many negative consequences of the shift form Roman Catholics to Protestantism it need not be forgotten that the increased diversity in these nations due to this shift equally balances the negative consequences.  The main focus will be controlling a possible religious war as the shift continues, and maintain and improve political and economic stability.



Works Cited:

Chu, Henry.  Los Angeles Times, “In Latin America, a Religious Turf War”, April 15, 2005.

http://www.forerunner.com/forerunner/X0258_Latin_America_On_Fir.html (Forerunner)

http://www.clacs.uiuc.edu/outreach/tr/k12tr86.html (UIUC)

This is a long list so I am going to try to group things to make more sense.  I did have the luxury that most of the others in the group didn’t in the sense that I had 6 friends that were local Argentines before I went on the trip.  My travels were much easier I think because of that reason and I got to experience some sites I otherwise wouldn’t have.  Get to know the other students in the residencia you will be staying in.  They are great people and can really add something different to your trip.


Before You Leave For Argentina:

  1. Get Brazil Visa Before You Go.  Since the semester you are in is usually coming to an end at this point it may seem like you don’t want to worry about adding another thing to your list and taking care of your Visa, but do.  It is easy!, but if you don’t listen to me get your Visa right when you get to Argentina.  Just google Brazilian Consulate in Miami.  There is a list of items that are required, and make sure you complete those items exactly to their request.  Brazilians are notorious for red tape, but this would be even worse if you tried to get it in Argentina.  Don’t forget that you are going as a tourist and not a student, otherwise good luck getting the Visa.  If you have any other questions about how to fill out the form(s) just as Dr. Bowman; he was very helpful and will give you much of the information you will need via email.  Also include a note (Dr. Bowman gave us one via email and I sent that exact thing in) saying that you would really like a 5 year instead of a 1 year Visa.  This way if you go back you don’t have to go through the trouble and do all the money orders again.  So, this is why I say get it before you go…Every person that got theirs in Argentina ran into problems.  None of them got a 5 year, the Brazilian embassy wouldn’t give it to one for a while and they were late coming to Brazil, and almost all of them have to fly out on the date of their flight departure from Brazil to go home or continue their travels outside school or else they will be illegal.  Not a good situation!  Nothing good came out of people going in Argentina; they had to wake up early, waste many hours waiting, and some couldn’t do other travels because the embassy will hold your passport for 1 week while processing.  I sent my passport via US Mail (that is what is required, no FedEx or such is allowed).  I was stupid and almost waited to the last second so I overnighted it to Miami, they processed it for 5-7 days, and then I got it back.  I think it was a total of a 9 day turn around.
  2. Packing.

-Pack light, and yes I am a girl saying this.  You will buy a lot of stuff, and most people had to buy another small suitcase to fit it all.  The airport fees if you are overweight aren’t too bad.  When I went and came on Delta if you were between 50 and 70 pounds it was a US$25, and from 71 pounds and up it was US$100.  If you take a flight from Argentina to Brazil, which I am sure you will, I think it was not the weight per bag, but the combined weight of 50 pounds (I may be wrong though).  I think I payed around US$23 for being overweight and then you have to pay another tax to leave the airport of US$18. 

-Bring both an adapter and voltage converter.  Some electronics will take the voltage, but it is safe to have both.

-If you have them and you can take care of them pretty well, bring your laptops and any mp3 players.  These will be very nice to have throughout the trip.

-I also would recommend buying a mask for when you are sleeping to go over your eyes and a couple of packs of disposable ear plugs.  You will see why when I tell you about the residencia you are staying at.

-Do not forget your bath towel!  They will not have one for you at the residencia.

-Bring clothes that are easy to be washed.  Also try to bring ones that have been washed before so you don’t run into troubles when washing them later with colors bleeding or them shrinking.  If you can avoid dry clean and hand wash as much as possible.  Also layers are important.  The weather can change very quickly at this time of year.  Shoes are important, but bring ones that you won’t care about getting nasty and destroyed.  A lot of guys had to buy new shoes before leaving Argentina, and most of the girls will throw their shoes away when we get home.

-Yes, you all get sick of wearing the same clothes, but I promise you the extra weight you would have to carry around is even worse.

-Here are some random things you wouldn’t think about.  Shower shoes!  You can use these as beach shoes too.  You are basically in a dorm, and you will need them in Brazil later if you accidentally touch the shower head (you will get electrocuted).  Also, I love my hot sauce and black pepper.  After a while the food will become bland.  They will have no hot sauce or black pepper, not even to buy.  Same goes with salad dressing (someone’s boyfriend brought some down when he came to visit).  Expect only olive oil and vinegar (white at the residencia and balsamic at really nice restaurants).

  1. US Money.  I didn’t bring more than US$100 because you do not get a very could rate when changing it into Argentine pesos.  It is easier to just pull pesos out of the ATMs with your debit card.
  2. Spending.  The exchange rate is great in Argentina.  When I went it was about 3 to 1.  It won’t be this good the rest of the trip.  However, I spent a good amount of money while I was here.  I didn’t keep an exact number, but one person that was very conscious about it, almost never ate out, and didn’t really buy any gifts spent about US$300 where as someone else spent around US$1500.  I wanted to enjoy everything there, so I went out to eat  a good amount of times and bought a lot of souvenirs for family and friends.


Once In Argentina:

  1. Laundry, Dry Cleaner, Alterations. 

-Laundry.  They are everywhere around your residencia.  The best price I found was 5.5 pesos per load.  This did wash and dry.  If you have more than one load, but not really two loads, they might charge you a couple of pesos more.  I always did two loads.  One for the whites and really light colors and the other fort the other colors (darks and reds).  Be smart and separate your clothes into the loads you want (everything will be turned pink if you don’t, I have seen it).  Also if you want something washed in cold water or not to be dried let them know.  I did unfortunately bring some stuff I need to hand wash or just wanted to.  This wasn’t too bad of a problem.  I bought a really cheap bucket and some soap and did them in my room.  The turn around is about 8 hours.  If you give it to them after 12 pm don’t expect your laundry till the next day (and don’t forget that could be a problem if you are washing your bath towel).  Overall the laundry situation was excellent.  They give everything back to you in bags and already folded; makes life easy.

-Dry Cleaning.  It is right across the street and on the corner.  Same prices and turn around time as in Atlanta.  Nothing special, but at least it is really close. 

-Alteration.  It is right across the street.  I did have to go get a sweater fixed.  Very good prices and quick turn around. 

  1. Mailing.

-Correo.  Only use this for sending letters and postcards home.  It is a very very corrupt system.  You will lose stuff otherwise.  I promise.

-Fedex.  Use this if you want to send anything home.  It costs more, but it is insured and it will actually get there and also in one piece.

  1. Transportation.

-Taxis.  Always have the address, name of place if there is one, the name of the street it is on and the two streets it is in between, or the corner it is at of the two streets.  Try to get a radio taxi if you can.  Also, if possible and it is late at night call the radio taxi.

-Buses.  These are some of the meanest people ever.  It costs 80 centavos.  If yo can just use the subte.  Make sure you hold onto everything so something doesn’t wind up stolen.  Know the routes before you get on.  It is really screwy.  Still haven’t figured out more than 2 bus routes and there are a lot.

-Subway aka Subte.  As I said, 70 centavos.  Really easy.  Get a map when you get your ticket.  Similar to Marta, just a lot better.  Watch out for poor people around this area begging.  Watch everything very closely.  You will lose something if you don’t.  Even men can lose their wallets that are in their front pants pocket if they don’t have their hands on them.

  1. Scams.

-Don’t get hit with fake bills, especially in taxis.  Always let them know that you know your money is real when giving it to them by looking for the water mark.

-Taxis also might press two buttons when you get in the cab because they know you are tourists and want to charge you a different rate.  Just keep your eye out.  Police are really cracking down on this.

-Try not to get into a taxi by yourself.

-Have your map out when you get into a taxi and act like you are following where they are driving so that they don’t just do circles on you to raise the prices.

  1. The Residencia.

-The residencia is always loud, so expect it. 

-The meals are okay, and they are generally the same 7 set of meals every week.  However, due to classes you will always eat lunch out or either bring it with you.  If you make up early enough you can get breakfast.  It is simple.  Dinner is pretty good, but usually I wanted to go out and try the food places around the city.

-There are computers there and they work so so (they do have internet).

-Dependent upon witch room you get you might have your own shower, but count on it being community showers.

  1. Safety.  Just be smart!  Don’t try to stand out too much.  We had a few pick pocketing and bags stolen, so be smart and watch your stuff at all time.  Overall I felt really safe because a lot of people are out on the streets at all times.
  2. Foods to try.  Asado is the big meal which is mainly meat (and a lot of it).  Dulce de leche is kind of like caramel but better; it can go on anything.  Empanadas; you will get very used to these because they are inexpensive and a great snack.  Picada is a plate that has cheeses, meats, olives, etc.
  3. For restaurants, bars, and clubs I say ask the locals.  They will know what is best at that time.  You always have Plaza Serrano that is only 6 blocks away.
  4. Cafes.  This was one of my favorite parts of the trip and Argentina in general.  Partake in them.
  5. Eating Schedules:

-Breakfast = 7-9 am

-Lunch = 1-3 pm

-Café = 5-7 pm

-Dinner = 9 pm on

-Club = Don’t think about going to the good ones before midnight.

  1. You will walk a lot.  I walked to class every day.  Then it is just easier to get to know the city to walk around too, and cheaper.
  2. Shopping.  There are many markets and you only go to them on the weekend.  There are some in Plaza Serrano (Palermo), San Telmo, and Recoleta.  There are at least 8 malls close in the city that are nice, and they have similar stores in all of them.  Don’t forget to buy inexpensive leather (jackets, boots, etc.) here.  It is really nice leather too.  Also, you have to buy the mate and bombilla. 
  3. Tipping aka Propinas.  You don’t tip taxis unless they are really good or nice.  At nice restaurants you can tip typically 15% (similar to States).  In other places you don’t tip more than 10% because it is seen as rude.
  4. Calling home.  This is very easy, and pretty inexpensive.  At almost all kiosks (and even the one right next door to the residencia under the Marlboro sign) they sell international phone cards ( I buy llamada directa ones).  You pay 10 pesos, and get about 30 minutes.  The time you get varies dependent upon times, day, and location that you are calling from.  It is easiest just to go to a close locutorio (across the street) and use your phone card there so that you don’t pay anything at all, it is clean, and the temperature is good (the phone at the residencia is really bad and outside).
  5. Weekend trips.  You will get a few of these.  Start trying to figure out what you might want to do before you come or when you get there.  You can either busy or fly if you want to leave the city.  The place to get bus tickets is very close to the residencia.  Some of the places people went were Mendoza, Montevideo, Bariloche, a town in Uruguay (you will need your passport), and I want to many places out in the country area. 
  6. Internet is easy.  There is a locutorio on every block, and there are wireless internet cafes not too far away.  Inexpensive too!  Don’t expect this the rest of the study abroad.
  7. ATMs.  Try to pull out money not in multiples of 100 (say, do 290 instead).  Otherwise you will get 3 100 pesos bills.  This is useless since nobody really will change them in unless you are buying more costly meals or something.  Otherwise there is an ATM on every corner so no worries.  Plus most places take your debit and credit cards, so there isn’t too big of need to have a lot of money on you (it is safer if you don’t).  Never! hop into a cab or on a bus right after walking out of an ATM!
  8. Colonia, Uruguay.  Either bring in US money or Argetine pesos.  They take either.  Avoid having to take out money there since their exchange rate is 22 to 1 so you will walk around with bills that have big numbers and aren’t worth anything.  You don’t want to try to change this back later because you will lose a lot of money.  Just bring enough before you go.  Check the prices of places and convert back to Argentine or US.  It is a tourist place so they try to scam you.  One place I really loved for pizza and sangria was Candela. Don’t forget you can rent bicycles, scooters, and 4 wheelers.  Don’t forget the little market near the beach.
  9. Try talking to locals about places to visit.  I had my friends, so this was no problem for me.

-gelato = down Borges street before Santa Fe, Freddo, Munchies are the best ones I think.

-museums = mnba, don’t forget the flower near bye, and malba


-gardens = botanical and Japanese

-squares = they are everywhere

-and you might want to go back to the other sites you will see while doing tours.

  1. You better love soccer.  If you don’t, you will learn.  Go BOCA!


Otherwise, I love this city.  You can have so much fun if you try.  Do stuff when ever you get the opportunity.  I will be heading back very shortly, once I graduate in 6 months.  I LOVE YOU BA!


travelman727 says:
Excellent advice, especially about obtaining a Brazil visa. I'm going there in November 2006 and would wholeheartedly agree about the red tape.
Posted on: Jun 24, 2006
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