Country Selection

After collecting the information and gathering all the facts and figures, country which we have
chosen to work on is BRAZIL.

Brazil is also known as FEDERATIVE REPUBLIC OF BRAZIL. Brazil is the largest country in
South America and the fifth largest nation in the world. It forms an enormous triangle on the
eastern side of the continent with a 4,500-mile (7,400-kilometer) coastline along the Atlantic
Ocean. It has borders with every South American country except Chile and Ecuador. Sao Paulo
is the city which we choose as it has much stable environment and more developed as compared
to other cities of Brazil.

Form of government: Democratic Federal Republic

Capital City: Brasilia

Official Language: Portuguese

Population: 212,559,417 (Approx 212 million).

Currency: Brazilian Real

Geographical Area Covered: 3,286,470 square miles (8,511,965 square kilometers)

Brazilian Economy: According to various sources Brazilian economy has a developing mixed
economy. It has the twelfth largest economy in the world by nominal Gross Domestic Product
(GDP) and the eighth largest by purchasing power parity (PPP). According to International
Monetary Fund (IMF), Brazil was worth 1839.76 billion US dollars in 2019, according to official
data from the World Bank and projections from Trading Economics. Brazil is ranked as the 83rd
country in the world with best GDP per capita in the South America Region, with a value of
US$6,450 per inhabitant.

PESTLE Analysis
 Political Conditions:

Brazil is considered to be one of the most powerful countries in the South American region. It is
also believed that a middle-power has average influence in international affairs. As it is from one
of the largest democracies in the world, it has opened the doors of huge potentials in many fields
for Brazil. In fact, many political analysts think that Brazil has the potential to become a
superpower in the future.
Brazil is also a representative from a few global organizations and associations for example the
International Monetary Fund, United Nations, World Bank, World Trade Organization, the G20,
Mercosur, and BRICS. It is likewise a vital accomplice of the OECD. Brazil appreciates solid
political and monetary relations with the United States. Be that as it may, Brazil's relations with
neighboring Venezuela are taking an ending route.

Additionally to the foreign policy challenges, there are some different issues that have hit Brazil
hard as of late. For example, corruption is probably the foremost concerning issue. In the
Corruption Perceptions Index of Transparency International, Brazil is currently standing on
105th rank among 180 nations and regions on the planet (Transparency International, 2019).

 Economical Conditions:

As mentioned earlier, Brazil is ranked as the twelfth largest economy in the world by nominal
GDP. Its economy was stable and strong between the years 2002 to 2013; however, Brazil’s
economy was unable to maintain the stability and eventually entered into recession in 2015 with
a growth rate of -3.8% and in 2016 it became a bit stable with a growth rate of -3.6%. Things
took a turn in 2017 and their economy saw a growth rate of 1.4% in 2019. Many economists’
forecasts suggest that the Brazilian economy will grow in 2020 and will continue to do so in
coming years (Banco Santander, 2019). The unemployment rate back in 2019 was 11.8%;
however, it was less than the rate recorded in 2018.

As mentioned above, Brazil is an important member of the BRICS (Brazil, Russia, India, China
and South Africa) group. It has undertaken a number of initiatives to encourage the foreign direct
investment (FDI) in the country. It is worth mentioning that Brazil is the 4th largest FDI
beneficiary in the world; however, FDI in the country took a downturn in the first quarter of
2018 (Banco Santander, 2019).

 Social Conditions:

One of the most diverse countries in the world is Brazil. It has a population of approximately 212
million. The expected life time span for males is 72 years and 79 years for females. Portuguese is
the official language, while Christianity is the religion which is majorly practiced in the country
(BBC, 2019).

Some of the social challenges which Brazil is facing today are lack of adequate education system
for children, housing, and health care. Thousands of children do not have any house to live and
they work and live on the streets in terrible conditions and are exposed to drugs, crime and
prostitution. Discrimination on the basis of gender and race is also out of control in Brazil.

Apart from social challenges, the middle class is growing rapidly in Brazil. Brazilians are very
modern and up-to-date with the fashion world. Many people love buying luxurious, branded and
expensive products, goods and services. Brazilians love football anxiously and they are always
one of the leading team in the world champion football in FIFA World Cup. In fact, Brazil has
produced one of the greatest footballers of all times.
 Technological Conditions:

Sao Paulo has seen a technological boost in recent years, specifically in software for Web and
mobile applications development. Brazilians stand among the most passionate users of social
media, and approximately 50% people are indulged in online activities (BBC, 2019). In fact,
Brazil is ranked the 5th largest number of cell phones and Internet users in the world.

Brazil has the highest ICT market share in Latin America and one of the largest in the world.
Brazilians prefer communicating with family and friends using the Internet. Therefore, not many
homes have a fixed connection line for a telephone. The Brazilian Government heavily invests in
R & D of innovation and digital transformation projects (International Trade Administration,
2018). Many MNCs are also deeply investing in Brazil’s ICT sector.
 Legal Conditions:

It is a typical practice for legal agreements of work to be composed, despite the fact which is
composed of contracts of business that are not generally needed under the Brazilian law. While
Brazil empowers foreign direct interest by and large, it places limitations in specific areas. For
example, putting resources into postal administrations, financial institutions, atomic energy, and
private security and transport is either limited to Brazilians just or exposed to the approval of the
Government of Brazil (Thomson Reuters, 2019).

 Environmental Conditions:

Brazil is one of the most beautiful countries in the world. There are beautiful places to visit such
as The Amazon River and Rainforest, Iguaçu Falls, 62 National Parks, 2,000 beaches stretching
along Brazil’s seashore and hundreds of conservation areas are some of the attractions that catch
the attention of millions of tourists every year. Tourism sector is rapidly growing in Brazil and
contributes immensely to the economy.

However, Brazil faces some environmental challenges. For instance, deforestation, illegal
wildlife trade, smuggling, air pollution, water pollution, land deterioration, and severe oil spills
are the most difficult ones to face. Brazil has taken numerous initiatives of environmental
friendly over the years to deal with the environmental challenges.
SWOT Analysis
Strengths:

 Brazil is one of the main agricultural products exporters in the world.

 Approximately 212 million is the population of the Brazil. The Brazilian economy is the
world's twelfth largest by nominal GDP and the eighth largest by purchasing power
parity. Brazil is one of the world's fastest growing major economies.
 The core consumers of Brazilian population are the middle class.
 Tourism is becoming a major industry in Brazil, Rio de Janeiro and São Paulo are two of
the most visited destinations in the country, offering visitors (whether in the country on
business or pleasure) a fabulous peek into the complex heritage and natural spectacle of
Brazil.
 Brazil is the most visited country in the continent of South America today.
 Brazilians have high purchasing power as they buy luxurious, expensive products.

Weaknesses:

 The public transportation system and the infrastructure are not on a high standard in all
areas yet.
 Brazil still has high crime rate and gang violence in certain areas.
 Poverty is still a big issue in Brazil - Definitions of poverty vary considerably among
nations. For example, rich nations generally employ more generous standards of poverty
than poor nations.
 Portuguese is not a mature trading language, and English is as a second language is not as
good developed yet. Also all surroundings member speak Spanish.
 Legal documentation system is not strong enough to keep records of certain agreements.

Opportunities:

 Brazil is one of the few countries in the world that are self-sufficient in oil, which plays a
very crucial role in global economy.
 It produces more ethanol than the combined production of Asia and Europe.
 The purchase of Brazilian land has become an increasingly popular investment strategy.
 The peak of increasing oil supply, according to the International Energy Agency (IEA),
will happen sometime around the 2020 to 2030. This could increase the demand for oil
extracting companies and peripheral technology that can find oil in more difficult
locations.
 The Brazilian government is spending $174 billion over the next few years.
  Opportunity in agriculture, with soil so rich that almost any crop will grow, Brazil is
potentially one of the world's greatest agricultural nations. It exports cognac, champagne
and wine to Argentina, the U.S. and Europe—including 30 million liters last year to
France. It is the world's No. 1 producer and exporter of coffee, ranks seventh in soybeans
and rice; sixth in tomatoes, sweet potatoes and peanuts; fifth in jute; fourth in tobacco and
cotton; second in sisal, cane sugar, cacao, corn, and oranges.
 Second largest producer of iron ore in the world.

Threats:

 Exports helped to expand Brazil's economy, but they can rapidly change direction and
slow Brazil's economy. The Brazilian currency REAL is getting stronger, which could
slow down there export driven economy.
 High interest rate.
 Terrorism can be expected as Guerilla activity especially in the Amazonas Region.
 As a consequence, global warming is considered to be the most acute threat to Brazil’s
interests by the countries elites.69 Contrary to what its politicians would sometimes
suggest, Brazilian elites strongly believe that Brazil needs to actively engage in tackling
climate change, mostly by reducing the rate of destruction of the Amazon forest, the
largest carbon sink in the world, 60 percent of which is on Brazilian territory.

References
https://bondsloans.com/news/brazil-swot-analysis-cautious-optimism

Atlas (2019) Brazil, available at: https://atlas.media.mit.edu/en/profile/country/bra/ (accessed 15

May 2019)

Banco Santander (2019) Brazil: economic and political outline, available

at: https://en.portal.santandertrade.com/analyse-markets/brazil/economic-political-outline (access
ed 18 May 2019)

BBC (2019) Brazil country profile, available at: https://www.bbc.co.uk/news/world-latin-

america-18909529 (accessed 01 February 2019)

International Coffee Organisation (2017) Monthly Coffee Market Report – December 2017,
available at: http://www.ico.org/documents/cy2017-18/cmr-1217-e.pdf (Accessed 01 January
2018)
International Trade Administration (2018) Brazil – ICT – Informations and Communications
Technologies, available at: https://www.export.gov/article?id=Brazil-Information-
Communications-Technologies-ICT (accessed 20 May 2019)

Thomson Reuters (2019) Doing business in Brazil, available at:

https://uk.practicallaw.thomsonreuters.com/0-503-8385?
transitionType=Default&contextData=(sc.Default)&firstPage=true&comp=pluk&bhcp=1
(accessed 20 May 2019)

Transparency International (2019) Corruption perceptions index 2018, available

at: https://www.transparency.org/cpi2018 (accessed 18 May 2019)

https://ukdiss.com/examples/brazil-pestel-swot-analysis.php

https://www.mindomo.com/mindmap/swot-analysis-brazil-
750fb784ed5a4d398683fd113d289a31

https://www.economy.com/brazil/nominal-gross-domestic-product

https://tradingeconomics.com/brazil/gdp