International business in Brazil

International business in Brazil

International Business in Brazil

Brazil, the vivacious home of flamboyant soccer, exotic locales and beautiful people, is spread over 16, 145 square kilometres of lush forests, rolling plains and breathtaking beaches. It is, by far, the largest country in South America. It is surrounded by almost all other South American countries, giving it the right mix of Latin tang. The country consists of 26 states and one federal district.

Brazilians are descendants of numerous African and European communities including the Portuguese, Spaniards, Italians and Germans. In spite of economic degradation and high crime rates, Brazil’s reputation as a sought after travel destination and production hub remains unaffected. Its trade industry however is limited greatly to the EU and requires expansion.

Brazil’s vital data points (as of 2016)

Population (million) 207
GDP (billion USD) 1796
GDP per capita (USD) 8,650
GDP per capita PPP (USD) 15,128
Purchasing power per dollar, compared to the USA 139%
Surface area (sq km) 8,515,770
% of population living in urban areas 85%
% of GDP added by agriculture - industry - services 6% - 23% - 71%
Ease of doing business index (1 = best, 189 = lowest) 120

What is Brazil’s Business Index?

The Business Index is calculated out of 189 countries of which Brazil stands 120th in ‘ease of doing business’.

What are the business opportunities in Brazil?

Brazil figures in the top 10 global markets as a leader in the areas of:

  • Iron and Steel
  • Cement
  • Television sets
  • Refrigerators
  • Oil and petrochemical production

The country is almost entirely self sufficient in oil and electricity with a 260,000 megawatt producing hydroelectric program. By the year 2020, Brazil aims to build 19 nuclear plants.

Brazil’s Top Export Commodities

  • Transport Equipment
  • Iron Ore
  • Soy Beans
  • Footwear
  • Coffee
  • Automobiles

Top Trade Partners

  • China (16%)
  • Unites States (15.4%)
  • Argentina (6.2%)
  • Germany (6%)
  • Nigeria (4.2%)

The Brazilian Sporting Industry

The Brazilians love their sports and everything about it – stadium matches, retail and merchandising and of course, playing host to world class sporting events such as The World Cup 2014.

Sport is not only a passion in Brazil; it’s a progressing industry with an annual growth rate of 7.4%.

Brazil Politics

The Federative Republic of Brazil political framework is classified as a Federal Presidential Representative Democratic Republic system. Within this particular system, the President acts as Head of State and Leader of the Government. All the states of Brazil operate as autonomous sub national regions, with their own state level governments.

Voting in Brazil is a right and a duty so all citizens between the ages of 18 and 70 are expected to register and vote. The first round of elections is held on the first Sunday in October while the last Sunday of October is kept for the runoff second round, if necessary. That last elections were held on October 5, 2014 with a run off on October 26, 2014. The next elections are due on October 2018.

Brazilian National Holidays

The following are the national public holidays in Brazil on which schools, colleges, institutes and most companies do not function:

Holiday Date
Nossa Senhorad da Aparecida 12th October
Civil Servants Holiday 26th October
Defuncts’ Day (All Souls Day) 2nd November
Republic Day 15th November
Christmas Eve (half day) 24th December
Christmas Day 25th December
New Year’s Eve (half day) 31st December

Though Brazil is known for its premium sporting events in which it invests heavily, basic offerings such as infrastructure, public services are lacking, Issues related to local gangs, rising crime rates and slow economic growth continue to plague the nation as it prepares for the 2016 Olympics games in Rio. Though the government has worked to improve their customs procedures, their biggest limitation in trade is their high tariff cost, making it tough for imports to enter.

The average Brazilian however, rates his or her life 7 out of 10 according to a recent survey, which is higher than the global average, portraying its typical “a vida é boa!” (Life is good!) attitude.

This entry in America was updated on May 30, 2018 by specialist.