Question

what downsides might brazil experience by implementing quotas, tariffs, and measures to devalue its currency

Answer 1

I believe the answer is:

- inflation

When a currency is devalued, people would be able to buy less amount of product with the usual price.

- trading wars

When a country create quotas and tariffs for goods from other countries, those other countries tend to retaliate and do the same toward the goods from our country.

- Expensive price for consumers

To enter Brazil, importers need to pay high tariffs. Because of this, they need to rise the price of their product in order to maintain their profit margin. This would be felt by Brazilian consumers in the market.

Answer 2

The disadvantage of quotas and tariffs are the products may not be produced and import and then the local business can charge any price they want and while local business are protected, the consumer is impacted drastically. The consumer will be impacted regardless as the supply will be down increasing the demand and the prices for all will rise. The general increase of prices for goods and at the same time devaluing the currency will lead to inflation.