Why Dell Should Leave Brazil Case Study

Decent Essays
Register to read the introduction… By entering Brazil, Dell has had to face political problems not just in regard to the whole country, but each state separately which also means any governance change.
Unattractive benefits for being a member of Mercosul. The benefits of Mercosul is that any company that produced at least 60% of given product in any of Mercosul’s counties are able to export products to any of the other Mercosul counties at zero tariffs. That means while Dell was dealing with the complex financial and political structure of Brazil, any company coming from countries with less costs and less difficulties arising from operating environments can control the market and all Dell's efforts and investment would be pointless.
In Brazil the relationships between politics and business were also very close. The state governance could simply make immediate deals with companies. In this situation no company would be secure in the market. For example, when Dutra won the election he took actions against TNCs by cancelling the tax incentives agreement granted to Dell and Ford.
Also in the computer industry, the market wasn’t flexible and there was no certain regulations for this particular

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