Course summary (Doing business in Brazil)
Doing business in Brazil. Population: 180 millions. Business opportunities: agribusiness, technological,
aircrafts, ... Foreign direct investment (FDI)
Ranking fifth among the world’s most populated countries, the population of Brazil amounts to 50 million families or approximately 180 million
inhabitants, the majority - 81% - in urban areas. The land area of Brazil
extends over 8.5 million square kilometers, occupying just under half (47%)
of the area of Latin America. The country possesses 20% of the entire
world’s biodiversity; an example of this natural wealth is the Amazon
Rainforest, with 3.6 million square kilometers.
Example of the course Doing business in Brazil:
Brazil accounts for three fifths of the South American economy’s
industrial production and integrates various economic Groups, such as
Mercosur, G-22 and the Cairns Group. The country’s scientific and technological
development, together with a dynamic and diversified industrial sector, is
attractive to foreign enterprise: direct investment was in the region of US$ 20
billion /year on average, compared to US$ 2 billion/year last decade.
Brazil trades regularly with over one hundred nations, with 74% of exports
represented by manufactured or semi manufactured goods. Its main partners
are: the European Union (representing 26% of the balance), the United States (24%), Mercosur and Latin America (21%) and
Asia (12%).
One of the most dynamic sectors in this trade scenery is the so-called "agribusiness"
sector, which for two decades has kept Brazil amongst the most highly productive
countries in areas related to the rural sector. Agriculture (agribusiness)
accounts for 34% of Brazil’s GDP, 37% of all jobs nationwide and represents 43%
of national exports, making it the only sector, among all the export sectors in
the country, to produce a surplus.
The owner of a sophisticated technological sector, Brazil develops
projects that range from submarines to aircraft and is involved in space
research: the country possesses a Launching Center for Light Vehicles and was
the only country in the Southern Hemisphere to integrate the team responsible
for the construction of the international Space Station-the ISS. A pioneer in
the field of deep water oil research, from where 73% of its reserves are
extracted, Brazil was the first capitalist country to bring together the ten
largest car assembly companies inside its national territory.
In the last decades, Brazil has gone from being essentially a basic goods
provider to a country with an extremely diversified industrial economy. In the
field of science and technology, for example, the country has climbed from 28th
to 17th place among countries with a relevant scientific production, thanks to
the presence of over 79 thousand researchers and scholarship students (2004)
operating in universities and the private business sector.
As far as the actual establishment of an operation in Brazil is concerned, the potential foreign investor will have no difficulty in obtaining
skilled professional assistance in preliminary stages, and will find that due to
the large industrial base few problems are encountered in locating joint-venture
partner or a suitable manufacturing facility. Foreign investors may enter the
Brazilian market directly - through a branch or a subsidiary - or through third
parties by means of distribution and sales representation activities.
Distribution and sales representation are, in most cases, cost saving when
compared to the incorporation of a local branch or subsidiary. However, these
alternatives may bring lack of control to the foreign investors over the way the
third parties distribute or sell their products in Brazil and deal with their
trademarks.
In various countries in recent years, the need to effect public-sector
investments in a context characterized by fiscal constraints has led to
Public-Private Partnerships in pursuit of an efficient means of providing public
services. In Brazil, after a year of intense legislative debate with ample
participation of the Government and society in general, the
Public-Private Partnerships (PPPs) Law was approved on December 30, 2004
(Law 11.079). A Public-Private Partnership implies a medium- or long-term (5 to
35 year) contracts for the provision of services, signed by the Public
Administration, involving sums of not less than twenty million Reais.
International Economic Relations. Brazil is member of: Southern Common Market (MERCOSUR), Andean Community (CAN) (Partner Country), Latin American Integration Association (ALADI), Union of South American Nations (UNASUR), Latin American and Caribbean economic System (SELA), Economic Commission for Latin America (ECLAC), Inter-American Development Bank (IDB), Forum for East Asia-Latin America Cooperation (FEALAC), Summit of South
American Arab Countries (ASPA), Organization of American States (OEA),
United Nations, World Bank, International Monetary Fund, World Trade
Organization, UNCTAD, OAS, CSN, CPLP, OEI, G8 +5, Rio
Group, BRIC ...
EU-Mercosur Free Trade Agreement
(FTA):
Free trade agreements with European Union,
India, Gulf Cooperation Council (GCC). CAN (Partner Country).
India - MERCOSUR Preferential Trade
Agreenent (PTA):
Business, Brazil, Brazilian, economy, foreign, Trade, Doing business, Export, Import, Population, 180 millions, opportunities, agribusiness, technological, aircrafs, foreign, Direct, Investment, FDI, Master, international business
EENI International Business
Course learning materials: 
