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Brazil Risk Analysis

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Executive Summary Investing in Brazil, as with any country, entails exposure to a variety of political, social, economic, and other risks, but also entails potential benefits for multinationals corporations. Political Risk- Brazil has been a stable democracy for 25 years. Despite some unique risk as corruption, Brazil has been rating overall medium risk for dynamic risks, governance framework, political violence and business and macroeconomic environment. Financial Markets in the country & Sources of Capital for the multinational corporation Brazil is now the eighth-largest economy in the world and will continue to seek a growing international role. The country has also been considered a confident player on the world stage …show more content…

Even Brazil’s infamous social inequality has not been politically destabilizing thus far. It would have been, if the country not begun to tackle the problem years ago. Brazil is ranked Free by Freedom in the World 2006, Freedom House’s annual survey of political rights and civil liberties. The constitution guarantees freedom of expression and there are dozens of daily newspapers throughout the country. The rights of freedom of association and assembly are generally respected, as is the right to strike. Brazil received a downward trend arrow in 2007 due to increased corruption that involved members of the governing party. As stated in the Economist Intelligence Unit, Brazil has actually a low risk number comparing to countries in South America. However the corruption scandals tend to be very frequently between politicians, affecting all levels of the government. Even with a democracy establish, the political system it’s often ineffective, it tends to help only the privileged class, bringing the difference between lower and upper class bigger. However, with a more open cover by the media, it has helped corruption scandals to be taken care of more quickly by increasing

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