(Fgv 2007) The great mystery about these copycat cars is their price. Chinese counterfeiters obviously save on research and development costs, but they still have to buy steel and other materials at market prices. Most of them make cars in very small volumes, so there are no economies of scale. That they can sell these cars for half the price of the originals suggests that something odd is going on. They either do not know their own costs (a distinct possibility), have revolutionized car making (highly unlikely) or are being subsidized in some way. For the time being, no one knows. Counterfeit cars in China - The sincerest form of flattery SHANGHAI The Economist - Apr 4th 2007 According to the text:
(Fgv 2007) Just as Lula has won over the traders, so the São Paulo exchange, known as Bovespa, has calmed the doubts of international investors in recent years. Long buffeted by rampant inflation, soaring interest rates and extreme volatility, share prices on Latin Americas largest stock market have doubled in the past three years, according to the leading market index. Brazils stock Exchange - A second look - SÃO PAULO The Economist - Apr 4th 2007 According to the text: