BRAZIL'S COMPARATIVE ADVANTAGE AND SPECIALIZATION IN THE GLOBAL ORANGE JUICE TRADE

Abstract

Brazil has consolidated its position as the undisputed leader in the production and export of orange juice, a specialization made possible by the Absolute Advantage of its resources and industrial efficiency. This article aims to analyze the sources of this Comparative Advantage, based on the classical principles of Adam Smith and David Ricardo, and, crucially, to demonstrate how this specialization confers upon the country a strategic position that regulates global trade. The analysis addresses the concept of opportunity cost and the oligopolistic structure of the sector, using the New Trade Theory (NTT) to justify the power of the Brazilian market. The study culminates in a practical case study on the tariff immunity granted by the United States, proving that high trade dependence makes Brazilian supply irreplaceable. It concludes that maintaining this advantage depends on mitigating vulnerabilities, such as the threat of Human Greening (HLB) and climate risks.