You are on page 1of 25

Contents
Interesting Facts Demographics Mineral Resources History Emerging Sectors How to do Business Bibliography

Interesting Facts About Brazil • • • • The 5th largest country in the world 1/3rd of world's potable water and rainforest Has the 2nd highest number of airports in the world. second-largest consumer of cocaine in the world • Brazil is 100% energy independent . Brazil is the longest country in the world. and spans approximately 2800 miles • Every Brazilian city has at least one soccer stadium! • Brazil.

Brigadeiros . Bossa . Feijoda Music – Samba . Nova Sports .Culture • • • • • 99% people speak Portuguese Carnivals – Annual Festival (>6 Days) Cuisine .

1 26.00 0 Literates Illiterates Literacy (Million) 6.20 Age Age (years) 67.70 0-14 Years 15-64 years >65 years .Demographics 39% 6% 1% 54% 13% EUROPEAN 87% Urban Rural MIXED EUROPEAN AFRICAN AFRICAN 200 100 14.6 176.

6 90 15.77 92 ROW 80 87.41 .Mineral Resources Brazil 84.59 87.4 20 10 12.23 8 12.

Populism and development (1930–1964) Military dictatorship (1964–85) Redemocratization to present (1985–Present) Colonial Brazil & The Old Republic (1500–1930) .

General Pedro Cabral GetúAlvares lio Vargas Pedro IIFonseca th th 26 Feb – 15 1822-1827 April 22nd 1500 Nov 1891 Nov 15th 1889 Import Substitution .

Populism and development (1930–1964) Military dictatorship (1964–85) Redemocratization to present (1985–Present) Colonial Brazil & The Old Republic (1500–1930) .

established in 1945. multiple-exchange-rate system was introduced.Second Republic • The overvalued foreign-exchange rate. Annual GDP > 7% • Problems – Increase in Balance Of Payments . remained fixed until 1953 • Foreign exchange controls to protect selected segments of domestic industry • In 1953 a more flexible. • As a result Brazilian economy grew .

Populism and development (1930–1964) Military dictatorship (1964–85) Redemocratization to present (1985–Present) Colonial Brazil & The Old Republic (1500–1930) .

15.60% to 75% Capital formation .3% per year State participation .2% of GDP to 20.3% • Student Opposition movement and labour union opposition • Guerrillas .Military Dictatorship • President Castello Branco Authoritartian regime • Technocrats and foreign investors • Economic Growth Economic growth took off at 11.

Military Dictatorship • Oil shock • Borrowings from abroad • Inflation soared high High interest rates in US GNP fell by 2% in 1981 5% GDP for debt service • Depreciated exchange rate lead to expensive debt • Stress on exports and international relations • Largest external debt in world(70% of foreign debt) .

Populism and development (1930–1964) Military dictatorship (1964–85) Redemocratization to present (1985–Present) Colonial Brazil & The Old Republic (1500–1930) .

Cancellation of interantional debt in 1988 • Ferenando Collor de Mello(1989-1992): Collor plan I Collor plan II Change of currency from Cruzado Novo to Cruzeiro Bankruptcy and unemployment .Redemoacratization • José Sarney New constitution in 1988 Political transition lead to higher inflation &stagnancy Cruzado Plan 3 currency units: Cruzeiro. Cruzado & Cruzado Novo.

GDP grew at the rate of 4% to 6%. . Reduce Expenditure by restructuring the government. Purchasing power increased.• Fernando Henrique Cardoso(1995-2002): REAL PLAN Action Obstacles removal to foreign investment Lowered tariff barriers Exchange market deregulation and liberalization SOEs Privatization Fiscal and monetary discipline in public sector Unidade Real de Valor (URV) (1 URV = 1 US$) Real was allowed to float within a band set. More foreign investments. Effect Inflation dropped from 2600% to 50%.

. • Popular among lower class Reforms Investment in Infrastructure Tax Relief policy Expansion of Political Influence (G 20) Beneficio De Prestacao Continuada (Benefit For Continuous Service) Bolsa Familia Consequences Foreign Trade increased Surplus Reached $29 Billion Net Creditor for First Time after Decades More foreign investments.Luiz Inácio Lula da Silva(2003-2010) • President Lula chose to maintain his predecessor policies.

Dilma Rousseff (01/01/2011 – present) President Rousseff is the 36th President of Brazil. 1st woman President of the country 3rd most powerful woman in the world Reforms Investment in Infrastructure Poverty reduction initiatives Reduction in Tax Imports Massive capital inflows FX intervention Privatization Science without borders Consequences GDP grew 2.7% in 2011 Expected to grow 2.5 % in 2012 4.1% in 2013 Increase import of goods Foreign exchange reserves grew to around US$ 375bn Unemployment rate reduced to an envious 5.8% Brave Enough To Carry Brazil Forward .

What Is Holding Brazil Back?? • Policy Failures – Excessive government expenses – Continued dependence on commodity exports – Corruption • Cumbersome regulatory and legal framework – “Custo Brazil” – 152 days to register a business – Tax systems needs to be simplified & property rights are poorly defined • Excessive Inequality – – – – Top 10% of population = 43% consumption Unequal education attainment Unequal land distribution Political disparity • External Factors – US and Chinese Trade Policies – China – a friend and a foe .

BRAZIL’S RANKING ON BUSINESS TOPICS .

.

Emerging Sectors in Brazil • • • • • Infrastructure Tourism Healthcare Real Estate IT .

• Never start into business discussions before your host does. Also make sure your nails are manicured • The colors of the Brazilian flag are yellow and green. whereas two-piece suits are associated with office workers. Conservative attire for women in business is very important. Avoid wearing this combination in any fashion . Business meetings normally begin with casual 'chatting' first • Be prepared to commit long term resources (both in time and money) toward establishing strong relationships in Brazil. This is the key to business success • Giving a gift is not required at a first business meeting.Business Etiquettes • Make appointments at least two weeks in advance. instead buy lunch or dinner • Three-piece suits carry an "executive" connotation.

com World Bank Report The Economist Forbes Magazine KPMG and E&Y Reports Breakout Nations – Ruchir Sharma .cia.wikipedia.gov www.Bibliography • • • • • • • • www.indexmundi.com www.