The Domestic Factors Of Brazil

Decent Essays

Analysis of the relevant domestic factors
Brazil ranks as the fourth largest exporter in the world excluding export of cotton fibre and the second largest employer in the country. The Brazilian textile and fashion industry has 30,000 companies and it is worth up to $63bn. This industry produces 9.5 million garments every year. There is a higher demand for Brazilian designers such as Oskelin, Carlos Miele, and Alexander Herchcovich within the growing middle class society. Brazilian Fashion Designers Association (ABEST) was started less than 10 years and now they have 54 members exporting textile to 48 countries. However, Brazilian Textile and Garment Association (ABIT) imports 60% of the garments worth up to $1.450bn from China and it is a 500% increase since 2006. The board of ABIT has raise awareness about the Brazilian textile industry at a governmental level and offer assistance to become more competitive. The problem is the production cost levels and the cost of labour in Brazil is higher. In addition, the international trade rules and procedures of Brazil are more complex and the international trade is not supported by any international agreements. As a result, the domestic market of Brazilian textile industry only produces for local retailers and customers. Brazil is an interesting case among the developing huge producers of textile around the world with its solid local business sector (Pasquinelli, 2012).
The Brazilian fashion industry appears to have in-constructed

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