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Our main goals are:
To develop a deep understanding of the political and economic forces that led to Brazilian current business environment.
To examine and analyze the country's strengths and weaknesses and their opportunities for growth and development.
To learn and/or master Brazilian Portuguese while immersing ourselves in the diverse and vibrant culture of Brazil.
Our overall impressions of the business environment in Brazil right now:
Brazil benefits from its rich agricultural and natural resources, which fosters international trade and has a stable and attractive business environment. However,
Brazil suffers from high levels of corruption, high trade barriers, and increased taxation, laws, and regulation for conducting business which makes the business environment more complex. In addition, Brazil suffers from rigid monetary practices in the form of high interest rates and heavy taxation. In Brazil, the interest rates are the highest in the world hence, you can only finance operations through equity as opposed to debt. These high interest rates imply that Brazil can not finance major infrastructure projects unless you have millions, even billions of Reais in reserve; the other option is to use debt financing. loanswithnoguarantor24.co.uk Brazil’s reluctance to use debt means that the growth and development of the country is hindered.
Brazil has experienced great economic and political changes ever since the establishment of democracy in Brazil which has lead to fluctuating exchange rates.
Compared to the U.S., Brazil has high taxes on imports, increased exchange rate volatility, and higher company profit margins which can lead to higher inflation. Unlike the U.S., Brazil is experiencing an abundance of growth in opportunities stemming from their booming oil and gas sector, agricultural production potential and increases in foreign direct investment.
Recently, Brazil has a very stable economy resulting from long periods of economic expansion and short periods of economic contraction. A strong domestic market and an abundance of natural resources helps to boost Brazil’s foreign and domestic investment rate. Additionally, Brazil has no main macroeconomic disturbances however structural reforms in the taxation, labor laws, and social security sectors need to be made. Brazil came out of the global recession in a better position than other companies due to their lack of mortgage and debt markets.
*This wiki was created by 2011 Business in Brazil program students: Ximena Arias, Tony Zhang, Civel Torres, Bonnie Devero, Maria Alvarez
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