Pest Brazil
BRAZIL PEST
Political environment
• Greed and Corruption
• Increase in government expenditures
• Political stability and emphasis on consistent economic policies and growth
• Position of international influence and power (BRIC)
• Many environmental restrictions and regulations (Protection of Amazon)
• Going into business:
• High bureaucracy, lack of transparency of rules and slow legal procedures (are hurdles to overcome and make brazil a difficult country to do business in)
• The huge opportunities for foreign companies in Brazil's growing economy have to be weighed up against the country's relatively high taxes and labor costs // labour rules are generous to workers
• Foreign exchange rules are in favour for investors outside the country but with some restrictions by certain states (freely allow dividends and capital to be repatriated to investors outside the country, but some restrictions are imposed by certain states // differences in risk between its 27 states)
Economic environment
• The world’s sixth largest economy (GDP: $2.089)
• Poor GDP growth of 3.2% in 2011,(was high in 2010 but dicreased due to measures to decrease inflation) the economy is expected to grow strongly.
• inflation 5%
• expanding its presence in world markets. ($256 billion (2011 est.) - 24th worldly)
• high interest rates make it an attractive destination for foreign investors. ???explain??
• Imports: $226,2 billion (2011 est.) - 23rd world - cost to import/per container:1.730
• large and well-developed agricultural, mining, manufacturing, and service sectors,
• capital inflows over the past several years have contributed to the appreciation of the currency, hurting the competitiveness of Brazilian manufacturing and leading the govern (exchange rates: 1,6728 (2011 est.) - 2(2009)
• Stock of direct foreign investment - abroad: £171,7 (2011 est.)
• foreign direct investment unflows:31
• still has a relatively high debt burden
• Several Brazilian companies
Political environment
• Greed and Corruption
• Increase in government expenditures
• Political stability and emphasis on consistent economic policies and growth
• Position of international influence and power (BRIC)
• Many environmental restrictions and regulations (Protection of Amazon)
• Going into business:
• High bureaucracy, lack of transparency of rules and slow legal procedures (are hurdles to overcome and make brazil a difficult country to do business in)
• The huge opportunities for foreign companies in Brazil's growing economy have to be weighed up against the country's relatively high taxes and labor costs // labour rules are generous to workers
• Foreign exchange rules are in favour for investors outside the country but with some restrictions by certain states (freely allow dividends and capital to be repatriated to investors outside the country, but some restrictions are imposed by certain states // differences in risk between its 27 states)
Economic environment
• The world’s sixth largest economy (GDP: $2.089)
• Poor GDP growth of 3.2% in 2011,(was high in 2010 but dicreased due to measures to decrease inflation) the economy is expected to grow strongly.
• inflation 5%
• expanding its presence in world markets. ($256 billion (2011 est.) - 24th worldly)
• high interest rates make it an attractive destination for foreign investors. ???explain??
• Imports: $226,2 billion (2011 est.) - 23rd world - cost to import/per container:1.730
• large and well-developed agricultural, mining, manufacturing, and service sectors,
• capital inflows over the past several years have contributed to the appreciation of the currency, hurting the competitiveness of Brazilian manufacturing and leading the govern (exchange rates: 1,6728 (2011 est.) - 2(2009)
• Stock of direct foreign investment - abroad: £171,7 (2011 est.)
• foreign direct investment unflows:31
• still has a relatively high debt burden
• Several Brazilian companies