As world markets become more openly competitive, countries work harder at cultivating their marketing advantages. The European Union, for instance, is a classic example ofa developed and coordinated trade partnership.
In 1991, South America, Brazil, Argentina, Paraguay and Uruguay joined into a common market called MERCOSUL to give them trading advantages. Before that, Brazil had a soybean production and trading advantage in the international market over Argentina.
Researchers Sinezio Maia and Ricardo Lima, State University of Maringa and Federal University of Pernambuco, have shown that, since MERCOSUL, the advantage has diminished.
Their modeling project indicates a redistribution of resources and a production improvement between the two countries. That's also meant producers from those two countries have jointly used inputs and technology to be more efficient and competitive.
(Sinezio Maia, State University of Maringa and Ricardo Lima, Federal University of Pernambuco)
