As for Frederick Barth ethnic boundaries is the most appropriate concept when one have an ethnic group living inside a different ethnic society.
Article Alemães Olham Porto Alegre: dos séculos XVIII ao XXI
Given germans in sother Brazil are responsible for industrialization of the southern most state of the country. Colonization and migration differ from country side from the one of the Capital Porto Alegre, in which the main contribuition was commerce and overall industries
Considering the general immigration of Europeans in the late 19th century, I would say that that was a central part of the construction of nowadays Brazilian identity, playing a heavy role in the construction of the idea of branqueamento and -later- democracia racial (I think that's the name). But, I am sure that the impact will be much greater in Soutern Brazil where there was a similar development as in Argentina in the last decades of the 19th and the first decades of the 20th century, replacing the original (nota bene, not indigenous) population by a society born out of migration. Maybe there was a connection to the "gaucho"-identity in southern Brazil - here is where my knowledge ends...
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