Brazil : An Emerging Economy

Brazil can be attractive to businesses that are looking to expand because the political system is considered to be stable. But there are other factors that are a cause for concern for businesses looking to expand. Brazil’s government is considered to be a democratic system, but it is truly a Federative Republic. It has operated this way since the fall of the Military Coup in 1985. In 1988 Brazil established it’s constitution. Brazil operates it government with the traditional three branches: the executive, legislative, and judicial branches.

The process of integration of economies around the world, known as globalisation, has catalysed the development of Brazil as a powerful emerging economy, through the expansion of trade and investment. Emerging countries are defined as those progressing toward becoming more advanced, through rapid growth and industrialisation. Consequently, Brazil’s rapid economic growth has secured its place in BRICS, an association of five major emerging economies, Brazil, Russia, India, China, and South Africa.

Brazil with a population around 201,032,714, is the largest South America’s country. Brazil’s most important components of its GDP are service revenues, wide industry sector and its successful agriculture.

In a time of global commerce, new business ventures can take on many forms. What used to be local or even national companies have become world-wide. International growth of a business can be extremely beneficial but is not without its challenges. Different countries have different peoples and different cultures - different ways of doing business altogether. If a venture is to be successful, these differences must be well understood.

The main goal for the project "How to do business in Argentina" was to show how a Multinational Company must approach different aspects like government, laws, society, culture and infrastructure when facing the challenge of doing business in other countries.

Brazil is often viewed as a fun filled country, with beautiful beaches, beautiful people and fantastic soccer players. While all of these may hold true, especially the soccer part, having won 5 FIFA World Cups and also hosting the 2014 version of the event, Brazil has proven to be an emerging market with a lot of potential. Based on the East coast and stretching well into the central area of South America, the Federative Republic of Brazil, as it is officially known as, is a country made up of 26 states and it occupies almost half of the South American continent. It current capital city is Brasilia, while it also has 14 large cities with populations of over one million including Sao Paolo (12 million), Rio de Janeiro (6 million) and

With a score of 38, Brazilians are much more family oriented than Americans who scored a 91. What this means is that Brazilians, once they know you well enough, will treat you like their own and like to work in tight and close groups. They value working in teams and the term “You’re in my personal space” would be perceived as normal and not insulting. Americans on the other hand generally love working by themselves and don’t like to ask for help. Some ideas suggest this is due to American history when settlers came in hundreds of years ago and survived on their own. This mentality has been passed down generations and we still work this way. A tip to any American going to Brazil- Don’t expect to immediately jump into negotiations or working on projects. Meetings will be much longer due to the fact that Brazilians want to get to know someone on a personal level before doing

I am researching the economy of Brazil. The definition of economy: The Management of the income, expenditures, etc of a household, business, community, or government. Careful management of wealth, resources, etc; avoidance of waste by careful planning use; thrift or thrifty use. (1) The system or range of economic activity in a country, region, or community. (2)

All this is taking place against the backdrop of an inexorable longer term shift of power gravity from west to east, the growth of Brazil, Russia, India and China (the BRIC countries), which are in turn facing their own growth challenges, and the rise of new emerging economies. These macro-economic trends have a significant impact on the way in which businesses operate, the priorities they face, and the strategies they develop to be successful on a global platform.

The research paper reviews the situation of the two Brazilian companies Gaucho, S.A (“Gaucho”) and Vaqueiro, S.A. (“Vaqueiro”.) The paper addresses three questions:

During the past decade Brazil has been one of the fastest growing countries both, economically and socially. The substantial growth has positioned Brazil in the top ten biggest economies of the world and has driven it to become the most developed country of Latin America. The development is not only constrained to the economy, but also to the other social aspects like poverty and inequality, that declined drastically. Although many factors have been involved in the generation of this substantial growth, the most influential ones have been the incentives of the government towards the diversification of the industrial sector, the investment in agriculture

Establishing a new business in Brazil would take some time. Brazilian welcomes foreigner and believes a good relationship should be establish first before any task and their laws are constantly changing. The manager that would take on this task would need to learn all about the Brazilian culture, starting with more than half of the Brazilian people think of themselves as white mainly descendants of Portuguese, German, Italian, Spanish, and Polish , Japanese, and Lebanese. Less than 10% think of themselves as black and less than 40% of the population is mixed, black and white. Degree. The manager would utilize the geocentric mindset to find the best managers and personnel regardless of race, gender, age, and sexual orientation and promote

Before we examine market entry strategies for Brazil, it’s important to understand some basic characteristics of the country’s business environment.

During the 1950’s the current president of Brazil, Juscelino Kubitschek, established a plan to develop an automobile industry. The plan included attracting foreign automaker investors into the Brazilian automobile industry with financial incentives and the use of market restrictions. Volkswagen, Ford, and General Motors embraced the plan and competed to be market leaders in the Brazilian automobile industry. In this case study we will look more closely into why the Brazilians wanted to build an automobile industry. We will examine the strategy that the Brazilian government used to establish their automobile industry. Lastly, we will further examine the power struggle between the Brazilian government and the global automakers and why Volkswagen won in the Brazilian automobile industry.

Finally, Brazilian infrastructure is a major obstacle on the path to development. Brazil is ranked 105th out of 139 countries surveyed in quality of roads; out of the BRIC nations, only Russia is worse. Many of the cost advantages that Brazil enjoys are negated by the high