Doing Business with Brazil Essay

3209 Words May 28th, 2016 13 Pages
Doing Business in Brazil
Transfer Paper: International Management

Project: Investing in Real Estate

Florent Carayon

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1 – What is the Business Environment in Brazil?
a) Over all idea about the country:
The word "Brazil" comes from Brazil wood, a tree that once grew plentifully along the Brazilian coast. * Brazil, officially the Federative Republic of Brazil, is the largest country in both South America and the Latin American region. It is the world's fifth largest country, both by geographical area and by population.













Capital: Brasília
Dialling code: +55
Currency: Brazilian real
President: Dilma Rousseff
Official language: Portuguese
Life expectancy: 74 Over All Idea about the
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These factors, amongst others, are creating an immense and ever increasing demand for better infrastructure.

2

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Market overview:

Brazil enjoys a growing middle class, growing Internet usage, and increasing internal demand for goods and services. Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, Brazil’s economy outweighs that of all other South American countries, and Brazil is expanding its presence in world markets. Since 2003, Brazil has steadily improved its macroeconomic stability, building up foreign reserves, and reducing its debt profile by shifting its debt burden toward real denominated and domestically held instruments. The inflation rate was at 5.0% in 2010, but will be most likely 6-7% for 2011. Unemployment is at
6.7% (as of Aug ’11). Interest rates are extremely high. The key rate (Celic) is at
12.5% (Aug ’11). Commercial bank rates for credits to businesses are at 40%. In
2008, Brazil became a net external creditor and two ratings agencies awarded investment grade status to its debt. After record growth in 2007 and 2008, the onset of the global financial crisis hit Brazil in September 2008. Brazil experienced two quarters of recession, as global demand for Brazil’s commodity-based exports dwindled and external credit dried up. However, Brazil was one of the first emerging markets to begin a recovery. Consumer and investor

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