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Major Market Indicators

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Executive Summary

The report explores Brazil, Argentina, and Chile’s major market indicators to help determine which mode to execute (import from U.S. or export to U.S.) of auto parts. An in-depth PEST analysis was done for each country that highlights some of the most important pieces of data from various sources. Each country has several opportunities and challenges that could affect the ease of doing business with them.
Brazil is the largest country in South America and they have a strong economy that is ranked 7th amongst the rest of the world. Their export value exceeded their import value in 2012, however, one of their major import items are auto parts. They typically only export vehicles so importing auto parts is crucial to them. One of their main economic objects is to surplus their foreign trade of imports. There are import restrictions that have been put in place such as; registering with SECEX, but they are attempting to speed up registrations and customs clearance. There are trading companies available to assist with the exporting the auto parts into the country. Imported items are subject to an import tax and several other customs duties. Although the economy is doing fairly well there, the labor pool has some challenges. They have heavily restricted labor regulations there, and large portions of the people are either semiskilled or unskilled. Brazil was ranked 7th within the automotive market in 2012 and there will be a short term demand within the industry

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