“In the urban areas of Brazil, most people prefer modern clothing. Young men wear jeans and T-shirts. Short skirts and dresses are very popular among women. Brazilian jeans is the most common staple in the Brazilian wardrobes. Jeans made for women are tight-fitting and loosely tapering near the feet. Brazilian jeans come in a wide variety of designs, styles and textures” Knowing jeans can be a good market for Brazil, we now have to take a look on the advantages and disadvantages of venturing business in this country. Political stability President Luiz Inacio Lula da Silva was re-elected, extending his term to 2011.
The country under his administration had significant ups and lesser downs. The country experienced its lowest inflation rate in his time. However, his term was weighed down by corruption scandals that shook his cabinet, coercing some members to leave their posts. Unemployment rose this year which resulted to his -5 approval rating. Economic conditions The country has over 20 million middle class people. According to a business report from PricewaterhouseCoopers, Brazil’s economy overshadows other South American countries and the country is escalating its presence in world market.
The country remains an attractive market for foreign investment. The investor’s confidence in Brazil’s growth potential and favorable economic conditions stimulates foreign investment. Despite the great interest, investors still encounter difficulties dealing with due complex regulatory and legal issues in the country. Economist Intelligence Unit through Country Data revealed that the country’s GDP currently ranks tenth in the world. On the other hand, the global recession is expected to hit the economy negatively. Conversely, the said report affirmed that the year 2010-13 will be positive according to the economic forecast.
Financial Options Brazilian banks have light strictness, but you need to keep in mind the issues for foreigners when dealing with them. Foreigners involved in international banking in Brazil must follow government restrictions on foreign banking. There are global banks in Brazil, but foreign investors need to fully understand Brazilian banking practices. However, the mortgage market is underdeveloped in Brazil and foreigners cannot yet obtain a mortgage, so investors usually arrange alternative financing in their own countries.
Nevertheless, Brazilian mortgages are due to be offered to foreigners in the foreseeable future as interest rates drop and as banks develop their products. Physical environment and its affect on trade According to Britannica Encyclopedia, By the turn of the 21st century, government statistics described four-fifths of the population as urban and one-fifth as rural; however, according to an alternative set of definitions, about three-fifths of the population could be described as urban, nearly one-third as rural, and about one-tenth as partly urban and partly rural.
Cities, especially big cities, have movimento—a quality of liveliness and bustle that most Brazilians value. And some Brazilian cities have a great deal of movimento indeed. Sao Paulo, a metropolitan area of sixteenth million people and one of the fastest growing cities in the world, is Brazil’s New York, Chicago, and Detroit all rolled into one. (source: http://www. everyculture. com/Bo-Co/Brazil. html) Social, health and environmental conditions Brazil struggles with extreme social inequalities, environmental degradation, intermittent financial crises, and sometimes deadlocked political system (source: Brittanica Online Encyclopedia).
Health is affected primarily by pollution and its rare climate (being tropical in most regions and temperate in the south) Given the wide gap between the poor and the rich, social control in Brazil has long been problematic than in the past. High rates of crimeparticularly kidnappings, assaults, and murder in urban areas receive wide media coverage. Police brutality and killings are common particularly in impoverished urban areas. Fearful for their security, corporate executives travel around in armored cars; elite neighborhoods are fortified as private, guarded condominiums surrounded by high walls.
(source: http://www. everyculture. com/Bo-Co/Brazil. html) Cultural considerations Diversification is definitely one of the factors that make Brazil attractive and out of the ordinary. Their multiethnic society has a lot to explain in their way of living and dealing with each other. Communicaid. com featured cultural considerations when dealing business in Brazil, these are some excerpts: • Brazilians depend heavily on relationships with others. It is essential therefore to spend the time getting to know your Brazilian counterparts, both personally and professionally.
Knowing the right people will also help minimize any frustrations you might experience doing business in Brazil. • It is common practise in Brazil to hire a despechante, or middleman, to help you in your business dealings. A despechante will help you navigate Brazilian bureaucracy for a nominal fee. Other References: http://www. communicaid. com/cross-cultural-training/culture-for-business-and-management/doing-business-in/Brazilian-business-and-social-culture. php http://www. everyculture. com/Bo-Co/Brazil. html http://www. propertyshowrooms. com/brazil/property/investment/brazil-investment-property-mortgages. asp