Brazil accounts for three fifths of the South American economy’s industrial production and integrates various economic groups, such as Mercosur, G-22 and the Cairns Group. The country’s scientific and technological development, together with a dynamic and diversified industrial sector, is attractive to foreign enterprise: direct investment was in the region of US$ 20 billion /year on average, compared to US$ 2 billion/year last decade.
Brazil is a founding member of the United Nations, the G20, Mercosul and the Union of South American Nations, and is one of the BRIC Countries. Brazil is also home to a diversity of wildlife, natural environments, and extensive natural resources in a variety of protected habitats.
Industry and technology are shining stars of Brazil’s economy. The nation’s industrial sector accounts for one-third of GDP, and includes steel, petrochemicals, computers, aircraft, and consumer durables. Its technological sector encompasses submarines, aircraft, and space research, including involvement in construction of the International Space Station. It is also a leader in ethanol production and research into deep-water oil, the source of 73% of its reserves. And Brazil’s automotive industry is enjoying a boom period, as access to credit, economic stability, and lowered interest rates have increased consumer confidence and boosted car sales in Brazil to the highest levels in the country’s history.
The World Bank classifies Brazil as a lower- middle-income country. However, the economy is large and diverse, and exports are geographically well spread. There have been profound changes and durable reform in the past 10-15 years — the end of hyperinflation, economic liberalization, improved public finances, and a successful transition from a fixed to a floting exchange rate. This has been reflected in increased domestic savings and exports of goods and services.
Nonetheless, annual average economic growth in the past 10 years was modest, as the economy suffered a series of crises related to poor public debt dynamics in the context of a historical tendency to periodic debt default. The most recent crisis was in 2002, and it was ended by the incoming government’s tight fscal and monetary measures, consistent meeting of International Monetary Fund targets, and market-friendly structural reforms. Instability has remained at bay despite political scandal and elections.
Brazil trades regularly with over one hundred nations, with 74% of exports represented by manufactured or semi manufactured goods. Its main partners are: the EEC (representing 26% of the balance), the US (24%), Mercosur and Latin America (21%) and Asia (12%). One of the most dynamic sectors in this trade scenery is the so-called “agrobusiness” sector, which for two decades has kept Brazil amongst the most highly productive countries in areas related to the rural sector.
The owner of a sophisticated technological sector, Brazil develops projects that range from submarines to aircraft and is involved in space research: the country possesses a Launching
Center for Light Vehicles and was the only country in the Southern Hemisphere to integrate the team responsible for the construction of the International Space Station-the ISS. A pioneer in the field of deep water oil research, from where 73% of its reserves are extracted, Brazil was the first capitalist country to bring together the ten largest car assembly companies inside its national territory.
Brazil is weathering the current global economic crisis better than most other Latin American countries. Thanks to the recent development of a large middle class, together with the expansion of the country's natural resource-based industries, Brazil has managed to avoid falling into a deep recession in recent years, unlike nearly all of its Latin American neighbors. Moreover, the rapid expansion of the country's oil industry will help to boost Brazilian economic growth over the near-term.
Brazil
Case: “Johnson & Johnson Consumer Products Brazil: Corporate Transformation (A)” We will discuss the situation facing Justino. There is not much financial information in the case. However, the implementation issues are worthy of our consideration. 1. Why is J&J Brazil in the situation they are? Some of the reasons I have observed are as follows: • Economy plays a role in the situation that they are in now. Rapidly decaying economy and constantly changing economical…
BRAZIL PESTLE ANALYSIS MANAGEMENT 100 – ASSESSMENT 1 1. INTRODUCTION The purpose of this report is to provide Penfolds Winery all the information needed by the company to expand its business interests into Brazilian wine market. The data will be gathered through extensive research of the Brazilian wine market and an internal analysis of Penfolds winery to discover the what the company has and what it needs to have in order for the Brazilian enterprise to be successful. The recommendation…
Currently, both India and Brazil are both rising economic powers following close on the heels of China. That is why many economists compare the business environments of different country such as China, India and Brazil. Not only because of the political environment in those countries are similar, but also because of other external environment are very similar such as economic environment, society environment, and technology environment. Despite of the unavoidable similarities, there are still their…
Investment Determinants in Brazil: An Econometric Analysis Capital formation occurs when a society does not devote its entire productive capacity to immediate consumption needs and rather devotes resources to the making of capital goods, such as factories, machines, and tools. Capital formation in turn increases society's total productive capacity in the long term. For Brazil, the last 30 years of fixed capital gross formation as a share of GDP has been volatile. In the 1970's it averaged 23%, in…
the potential profit opportunities of the World Cup 2014 and the Olympics and Paralympics 2016 in Brazil. The report explores the use of digital marketing of H&M promoting its expansion into Brazil as well as maintain raising its brand awareness in the medium to long term. It further attempts to give comparative and elaborate information about Brazil fashion industry. Furthermore, a detailed analysis of the use of digital marketing to promote the brands online awareness is carried out on the basis…
For our term paper, the two countries we decided to focus on are Brazil and India. We chose these two countries as they are both exciting, emerging economies with lots of potential for growth. However, they are also very different in terms of institutional structures and the challenges that they present for multinationals trying to do business there. India, a country located in South Asia is the world seventh largest country and the second most populous country after China, with a population…
Contents Table of Contents 0 Introduction 1 Objectives and Goals 2 Franchising in Brazil 4 Macro Environment in Brazil 9 Industry Analysis 15 Organizational Value Chain Analysis 17 Market Entry Strategy 21 Segmentation 21 Marketing Mix 22 Action Plan 26 Limitations 28 Conclusion 29 References 31 Appendix A: Comparing Brazil with India & China 35 Appendix B: Hofstede’s Cultural Dimensions 36 Appendix C: SWOT Analysis 37 Appendix D: Time Line 38 Appendix D: Budget 39 Introduction Mountain Equipment…
Unilever Brazil: Case Write-Up on Marketing Strategies for Low-Income Consumers Questions 1.Should Unilever target the NE segment? Is the segment attractive and can Unilever compete? What are the pro’s and con’s? According to the Unilever Brazil case, Unilever already had an 81% share of the Brazil detergent market which far exceeds than its strong competitor Procter& Gamble’s 15% share. However, it is facing a real threat that P&G Brazil may draw on worldwide R&D and marketing…
Competition: STRENGTHS o KKR-STRONG FINANCIAL BACKING o PRIME LOCATION IN RIO o UTILIZING BRAZILIAN FIRMS FOR CONSULTING o PROVEN SUCCESS IN U.S. SWOT ANALYSIS STRENGTHS OPPORTUNITIES o NEW AFFORDABLE BRAND CREATION o STAND ALONE SPORTS o WORLD CUP 2014 / OLYMPICS 2016 WEAKNESSES THREATS WEAKNESSES HEADQUARTERED IN U.S. UNESTABLISHED IN BRAZIL OPPORTUNITIES THREATS STRONG PRESENCE OF MEGA-MALLS WALMART LARGEST RETAILER OF SPORTING EQUIPMENT 6 Political / Legal Concerns: Stunted economic…