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Yes it does.

Back when Brazil was a Portuguese colony, a big industry for the Portuguese was the extration of wood. Portugal won a lot of money with this extrative industry.

Not any kind of wood though.

In Brazil we have a typical wood that is red/yelow, looks like it's on fire. Just like burning coal.

There is a name in Portuguese for "burning coal" that is "brasa". So, burning coal is "brasa".

"Brasa" is a noun, the adjective for "like burning coal" is "brasil".

Therefore the wood that was abundant here was named "Pau-Brasil" or Brazilwood (as there is no word in english for "LikeBurningCoal-Wood", or something like that...lol...).

Brazilwood was very popular and used in Europe, so the word was that a "Brazil land" was discovered.

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