Brazil Presentation PMGT 612 B

8/3/2019 Brazil Presentation PMGT 612 B

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Brazil


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BRAZIL THE COUNTRY

Brazil is the biggest country in Latin America geographically Area: 3,286,488 square miles Capital: Brasilia Population:190 Million Terrain:Mostly Dense Forest

Climate:Mostly Tropical

Nationality:Brazilian Annual Growth Rate:1.02%

Work Force:101.7 Million**Massive amount of Immigration**


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BRAZIL DEMOGRAPHICS

fFifth most populous country in the world

fBrazils ethnic composition is 55 percent European descent(primarily Portuguese), 38 percent a mixture of cultures

(African, German, Japanese, Amerindian, and so forth), 6

percent African, and only 1 percent Amerindian.fApproximately 29 percent of the population is between 0-

14 years old, 66 percent is between 15-64 years old, andonly 5 percent is over 65 years old.

f

Brazil is highly urbanized


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BRAZIL STABILITY/SECURITY

fEconomic growth prospects:

fThe Brazilian economy

fBiggest in Latin America

fMicroeconomic conditions have never been as promising

for investment as they are todayf Strong economic expansion

f Stable currency

fNominal interest rates falling to record lows


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BRAZIL STABILITY/SECURITY CONT.

fConsensus is for continued growth

fDeutsche Bank predicts that the Brazilian financial and

economic outlook remains strong due to the improvedeconomic stability and declining interest rates.


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fDomestic financial stability

fThe World Bank now ranks Brazil as the 10th largesteconomy in the world

fThe Brazilian economy has remained stable as a result of:fMacroeconomic management

fFirm fiscal and monetary policies

fGood debt management.


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fSocial & Political stability

fStable democratic political system

fNo political enemies

fNo ethnic or cultural conflicts

fNo threat of terrorism or civil unrest

fBrazils democratic institutions have enabled theinternational and domestic markets to maintain their

confidence in Brazils political system.


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fExternal competitiveness

fBrazil has a wealth of natural resources

f Favorable agricultural climate

fMassive areas of rich fertile agricultural land,


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BRAZIL STABILITY/SECURITY CONT.f

World leader in the production and trade of manyimportant commodities such as:

fEthanol

fCoffee

f SoybeansfOranges

f SugarcaneThe recent sharp increase in commodity prices and the

integration of China, a major buyer of commodities, into theworld economy have provided a further boost to the Brazilianeconomy and balance of trade.


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BRAZIL ECONOMICS

fBrazil is one of the largest economies in the world

fBrazil accounts for 1% of the world commerce

fBrazilian economy is within the ten largest worldwide

fGross Domestic Product (GDP) is in the area of $500billion

fCurrency information:Real/Reais (BRL; symbol R$) = 100centavos.Notes are in denominations of R$100, 50, 10, 5, 2and 1. Coins are in denominations of R$1, and 50, 25, 10, 5,

and 1 centavos.


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BRAZIL ECONOMICS CONT.fBrazil's economy outweighs that of all other South

American countries and is expanding its presence in worldmarkets.

Agriculture products:CoffeeSoybeans

WheatRice

CornSugarcane

CitrusBeef

Main industries:TextilesShoes

ChemicalsCement

LumberIron ore

TinSteelAircraft

Motor vehicles partsMachinery and equipment


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BRAZILIAN RELIGIOUS INFLUENCES

fBrazil's strong Roman Catholic heritage can be traced tothe Iberian missionary zeal, with the fifteenth-century goalof spreading Christianity to the infidels.

fBrazil is said to be the largest Roman Catholic country in

the world.

fPopular or traditional forms of Catholicism are widespreadin the interior of the country.


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BRAZILIAN RELIGIOUS INFLUENCES

CONT.

fCatholic holidays, consequently, affect Brazilian workschedules and are widely celebrated.

fBrazil includes among its population people of all faiths and

Brazil's Constitution guarantees freedom of religionfThe most important religious influence in Brazil besides

Catholicism, comes in the form of the Brazilian religions ofUmbanda and Candomble.


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BRAZILIAN WORLD TRADE

fGovernment intervention in foreign trade has a long historyin Brazil, reaching back to the colonial period when Portugal

forbade Brazilian trade with other nations.

fBrazil trades with the USA, Colombia, Germany, Japan,Argentina, China, Canada and United Kingdom.

fMajor Trading Partners: Imports: US 18.3%, Argentina 8.9%,Germany 8.1%, China 5.9%, Nigeria 5.6%, Japan 4.6% (2004)Exports:US 20.8%, Argentina 7.5%, Netherlands 6.1%, China5.6%, Germany 4.1%, Mexico 4% (2004)


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BRAZIL TRADE AGREEMENTS

fBrazil's most important current regional trade initiative isthe Common Market of the South

fWith the ratification of the North American Free TradeAgreement among Canada, Mexico, and the United States in1993, it was inevitable that Brazilian participation in even

larger regional trade arrangements than Mercosul (is aneconomic and political agreement among Argentina, Brazil,Paraguay, and Uruguay)would be discussed increasingly.

fArgentina historically has been Brazil's most important Latin

American trade partner by a wide margin, both in importsfrom Brazil and exports to it.


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BRAZIL BUSINESS DEVELOPMENT AND

IMPLEMENTATION

fBrazil and the United States are extremely different in theway each conceives time.

fBrazilians tend to be considerably lax in comparison to

their North American counterparts.


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BUSINESS IN BRAZIL

Doing business in Brazil is like a huge social interaction,deals can be made or lost within seconds

Everyone going into Brazil looking to strike a business deal

needs to be wary of the cultural challengesIn the Business culture- Brazilians are very communicative,

they prefer face-to-face meetings


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BUSINESS IN BRAZIL CONT.

fYou must start out with a personal contact before you cando anything

fA prospective Brazilian partner is typically looking forsomeone they are comfortable with and can trust

fTreat the office secretaries good as they are the ones whocan fill you in on the dress codes, policies and proceduresyou will need to follow

fAvoid being aggressive, this is very offensive to the

Brazilians, relax and avoid getting straight to the point theywill take it as aggressiveness


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STRENGTHS

fBrazil boasts abundant natural resources with a relativelydiversified economy.

fFiscal and monetary policy has been prudent and pragmatic.

fDomestic market potential and low labor costs have continuedto attract foreign investors.

fThe current level of real permits Brazilian companies to becompetitive.

fThe country enjoys international financial community backing.


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WEAKNESSESfThe public debt burden is very heavy with maturities too

short.fThe external debt level is unsustainable over the long haul.

fExternal financing needs are too great in comparison tocurrency earnings due to the debt amortization burden.

fThe low level of savings which government financingneeds essentially gobble up has been impeding privatecompany investment.

fThe new president has little room for maneuvers, squeezed

by his electors aspirations for change, the need to reachcompromises with coalition partners, and by economic

restraints.

Brazil Presentation PMGT 612 B

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