Situation Analysis : Industrial Players Essay

Brazil has been immersed in international commerce. In 2009 the imports were 8,1% of the Brazil’s GDP, while in 2008 and 2007 were 11% and 8,4% respectively. Sao Paulo and Rio de Janeiro have taken the control over brazil´s imports in 2009 and this country ranked 25th as an importer in the world with US $ 127 billion. (BBC NEWS, 2016)

Today Brazil with a GDP of $2.533 trillion is the 7th largest economy in the world and it is also considered as one of the most successful emerging countries. Despite all predictions, thanks to its huge domestic market and agriculture, the country maintained its growth in 2009 and 2010.

Located in South America, Brazil has the seventh largest economy in the world with its nominal GDP. Brazil’s economy is the biggest in Latin America and ranks second in the Western hemisphere, following the United States. Brazil’s GDP is 2.246 trillion USD. With a population of 200.4 million, Brazil has a GDP per capita of 15.9 thousand ranking 71st in the world.The currency of Brazil is the Brazilian Real.

Some of the economic stimulus focused on helping the poor by increasing wages and giving them better access to credit as well as reducing taxes. Worldwide, Brazil is the seventh largest economy. Between the years 2003-2013, Brazil has experienced an economic growth of 3.5%; there was also an increase in jobs from a 41.8% to a 52.9%. All the policies created, aimed to increase the internal consumption of goods. There has also been an increase in international investments, especially after the end of the dictatorship. Nowadays, Brazil has become the fifth largest nation to receive foreign investment in the world. (Marques & Nakatani, 2015) Tourism is a major industry; it contributes up to 8% to the country GDP and offers around 6 million of jobs (Hudson, 1998). It is a country with many natural resources, and a booming industry in agriculture, mining, petroleum, hydroelectric energy, manufacturing, and biofuels (Louis,

Federative Republic of Brazil has an area of 8.5 million square-kilometers, which is slightly smaller than the US, and makes it the fifth largest country in the world (The World FactBook [WFB], 2015a). It has a population of about 204.3 million (WFB, 2015a). As the South America's largest economy, the gross domestic product (GDP) of Brazil is about $2.353 trillion and the GDP per capita is around $16,100 in 2014 (WFB, 2015a).

Brazil is currently an upper middle class developing country that has positioned itself as the leading economy in South America and the ninth biggest economy in the world. The country’s economy is composed of three big sectors: services which account for approximately 72% of GDP, manufacturing that generates 22.7% of GDP and lastly agriculture generating 5.2% of GDP. Despite being able to sustain steady economic growth and hitting a peak of 7.5 % annual GDP growth on 2010, Brazil has entered a depression and its annual GDP growth has declined in the past five years to -3.8%. Other economic indicators such as inflation and unemployment rate rose to 10.7% and 12% respectively.

Republic of Brazil’s capital is Brasilia and the largest city is São Paulo. In addition, other flourishing

Some of Brazils natural resources are, gold, iron ore, nickel, platinum, tin, uranium and timber. You might be surprised to hear that Brazil in fact creates aeroplanes to export to other countries, I never knew that. A lot of those resources are valuable and earns the country billions of Reals ( Brazilian Money) You might wonder who is buying all this stuff from Brazil.

Brazil is one of the most prominent emerging economies in the world, indeed Brazil forms part of the BRIC group of emerging economies alongside Russia, India and China. Brazil does differ from some of its emerging economy counterparts in many ways, unlike China (but similar to Russia and India) Brazil has a democratic form of government and the centre-left Worker’s Party (Partidos dos Trabalhadores (PT)) has governed Brazil since 2003. Unlike other emerging economies, the Brazilian economy is dominated by the services industry which contributes 67 per-cent of Brazilian GDP and employs 70 per-cent of Brazil’s 100.77 million strong labour force. The other key sectors of the Brazilian economy are the industrial sector, contributing

Considered by a large and well-developed farming, mining, industrial, and service sectors, and a rapidly expanding middle class. Brazil 's economy outweighs that of all other South American countries, and Brazil is expanding its presence in world

The types of firms that are attracted to Brazil are companies in the automotive, chemical, and companies that require raw goods. As we can see in Exhibit 3, the majority of the exports in Brazil’s are raw materials. Vale, JBS, Matalurgica Gerdau are a few companies that export more than $100 Billion dollars in revenue of raw materials found in Brazil per year. The largest exporter in Brazil is Petrobras. Petrobras’s takes advantage of Brazil’s oil and gas natural resources.

Brazil 's economic history has been influenced by foreign trade patterns and policies. Before World War II, exports were largely in commodities such as sugar, gold, diamonds and rubber. Coffee played a major role in the Brazilian development but Brazil was negatively impacted by the 1929 recession and as a result coffee demand was lowered. From 1929-1931, the demand did not rebound and Brazil spent $63 million in destroying its coffee oversupply. Brazil then required reduction in Brazilian imports post 1929 to initiate industrial growth. This was specifically centered on São Paulo. In the late 1950’s, Brazil introduced a new tariff structure and its application favored domestic producers of manufactured consumer goods. The protection was great enough to completely eliminate competing imports from the Brazilian market.

Brazil’s market size and ample resources make it possible for them to be a key player in the growing global economy, capable of responding to global demand. The major challenge for economic growth is not lack of demand, it is the capability to handle this demand, and the problem is a lack of infrastructure.

The Beverage Industry in India constitutes around 230 million USD among the 65 billion USD food processing industry. The major sectors in beverage industry in India are tea and coffee which are not only sold heavily in the domestic market but are also exported to a range of leading overseas markets. Half of tea and coffee products are available in unpacked or loose form. Among the hot beverages manufactured in India, tea is the most dominant beverages that is ruling both the domestic and international market today. The supply of tea and coffee is insurmountable in the Indian beverage industry.

There are good opportunities for U.S. companies to invest in Brazil because of its large and continuously emerging economy, geographical location, and its new infrastructure concession program.