Exchange Rate Risk-

Government Facilities-

FDI is encouraged and promoted by the Brazilian government. The National Investment Bank,
one of the world's largest development banks, promotes foreign investment. The majority of the
barriers to foreign investment, especially in the stock market, have been removed. Over the past
fifteen years, a significant number of public enterprises have been privatized, and many
industries have been deregulated. Among the initiatives offered by Brazil to draw investors are
the following: Inovar-Auto Program, which seeks to improve technical growth and energy
efficiency; Consulta Pblica Ex-Tarifário, which allows businesses to innovate further by
temporarily lowering the rate of tax on capital goods imports. Renai is a company that informs
potential investors about business prospects in Brazil. Furthermore, the Brazilian federal
government provides investment support in the form of funding and tax treaties that restrict
double taxation.

Government Restrictions-

Brazil has simple, sound FDI legislation that has been in place for more than five decades. There
is no distinction in Brazilian law between international and domestic investments. on the other
hand, all foreign investors must appoint a representative in Brazil who, along with the
representative of the company receiving the foreign direct investment, will be responsible for
registering the transaction with the Central Bank of Brazil's Foreign Direct Investment module
according to the instructions laid out on the website. The Electronic Declaration Register (RDE)
on the Central Bank Information System is used to electronically register foreign capital entering
Brazil.