COUNTRY REPORT ON BRAZIL

SUBMITTED BY: SANDIP DAS (12810069) SABHRISWARAN (12810070) SANTOSH (12810071) SAURABH PATEL (12810072)

CONTENTS

POLITICAL SCENARIO ........................................................................................................ 275 ECONOM IC ANALYSIS........................................................................................................ 276 Current Strengths ............................................................................................................... 276 Current Challenges ............................................................................................................... 28 Future prospects ................................................................................................................... 27 Future risks ........................................................................................................................... 28 TECHNOLOGY ANALYSIS .................................................................................................... 10 Current Strengths ................................................................................................................. 27 Current Challenges ............................................................................................................... 28 Future prospects ................................................................................................................... 27 Future risks .......................................................................................................................... 28 SOCIO-CULTURAL CHARACTERISTICS .......................................................................... 27 Cultural characteristics ........................................................................................................ 27 Aesthetics....................................................................................................................... 28 Hofstede......................................................................................................................... 27 Entrepreneurship........................................................................................................... 27 Social characteristics ............................................................................................................. 28 Societal classes .............................................................................................................. 27 Ethnicity ........................................................................................................................ 28 Language....................................................................................................................... 27 Inequality ....................................................................................................................... 27 Crime ............................................................................................................................ 28 Health ............................................................................................................................. 28 EDUCATION/KNOWLEDGE ................................................................................................. 27 ENVIRONMENTAL ANALYSIS ............................................................................................ 28 Deforestration ............................................................................................................... 27 Acid rain ........................................................................................................................ 27 Endangered species ..................................................................................................... 28 2|Page

Air pollution ..................................................................................................................... 27 Wastage disposal ............................................................................................................. 27 ETHICAL ISSUES .................................................................................................................... 28 Cultural concepts ............................................................................................................. 28 ETHICAL CHALLENGES....................................................................................................... 27 Ethics in sports ................................................................................................................ 28 Ethics in education .......................................................................................................... 27 LEGAL ENVIRONMENT ........................................................................................................ 27 SUGGESTIONS ......................................................................................................................... 28 Overview........................................................................................................................... 28 Opportunities ................................................................................................................... 27 Marketing tips................................................................................................................... 28 Business culture ............................................................................................................... 27 Do's .................................................................................................................................. 27 Donts ............................................................................................................................... 28 CONCLUSION ........................................................................................................................... 27 BIBLIOGRAPHY ....................................................................................................................... 28

3|Page

INTRODUCTION
Brazil, the largest country in South America with a population of over 193 million, stands fifth in the population across the globe. It is one of the more stable and prosperous country in Latin America with abundant natural resources. Brazil had a GDP of US $2.47 trillion in 2011, mainly due to its recovery in its export activities. Brazils economy is expected to reach a GDP of $3.17 trillion in 2017 with a CAGR of 4.3% over the next five years. It is a founding member of the United Nations, the G20, CPLP, the Organization of Ibero-American States, Latin Union, the Organization of American States and is one of the BRIC countries On a historical note, American Indians lived in Brazil for many years. The first Europeans came from Portugal in the 1500s. Portuguese is the common language in Brazil. Europeans forced African slaves to work on huge sugar cane farms and slavery ended in 1888. People from Europe went to Brazil to find work. Immigrants from Germany lived in the south because the climate reminded them of home. People from Japan and Italy worked on coffee farms. Some bought their own farms. New Lives, Old Ways Immigrants often keep their own ways of doing things. They also learn new ways. Many people whose ancestors are Italian or Japanese live in So Paolo, Brazils biggest city. These immigrants pass their traditions to the next generation. People in Brazil are also very modern. They use cell phones, email, and the Internet to stay connected to people all over the world. They use satellites to communicate over long distances.

4|Page

POLITICAL SCENARIO
Brazil was settled by the Portuguese from 1500 after the 1494 Treaty of Tordesillas divided the world between Portugal and Spain. Rio de Janeiro functioned as the Capital of the Kingdom of Portugal from 1808 to 1821 when Lisbon was occupied during the Napoleonic Wars. Brazil achieved independence from Portugal in 1822. Brazil is a federal republic composed of 26 states and a federal district with three tiers of government. Each state has its own government structure mirroring that at the federal level. Voting is universal and compulsory for all literate citizens from 18-70, and optional for those aged 16-17 and over 70, or who are illiterate. Brazil has traditionally been a narrow-minded country, both politically and economically. However, throughout the 1990s, Brazilian foreign policy reflected a more internationalist approach under former Presidents Collor and Cardoso. Priority was given to relations with other Latin American countries. Former President Cardoso worked to promote Brazil as an important international player and regional power, and commenced a campaign to win a permanent seat for Brazil on the United Nations Security Council. President Rousseff has continued an outwards-looking foreign policy. As an increasingly important economy in its own right, Brazil has become a regular participant in global forums such as the World Economic Forum, and is a member of the G20. Brazil hosted the G20 Finance Minister's Meeting in 2008. Brazil has placed increased emphasis on reciprocity in trade negotiations. It has asserted that progress in the World Trade Organization and Doha Round negotiations will be contingent on concessions being offered by developed countries on agricultural subsidies. The current Brazil's foreign policy is based on the country's position as a regional power in Latin America, a leader among developing countries and an emerging world superpower. Brazilian foreign policy has generally reflected multilateralism, resolving disputes peacefully and non-intervention in the affairs of other countries. The Brazilian Constitution also determines that the country shall seek economic, political, social and cultural ties with the nations of Latin America. In addition, Brazil manages a peacekeeping mission in Haiti ($350 million) and makes inkind contributions to the World Food Programme ($300 million). This is in addition to humanitarian assistance and contributions to multilateral development agencies. The scale of this aid places it on par with China and India and ahead of many western donors. The Brazilian South-South aid has been described as a "global model in waiting."

5|Page

Economic analysis
Overview GDP growth plummeted to 3.2% in 2011 from 7.5% in 2010 Industrial production in Brazil declined from 12.27% in 2010 to 9.42% in 2011. Manufacturing struggled as it lost competitiveness due to an appreciated Brazilian real. The BCB eased monetary policy and the government announced targeted tax breaks for some segments in order to boost competitiveness in the international export market. In January 2012 a 14.3% rise in the minimum wage was introduced, which will help to boost consumption but may also increase inflation. The fiscal policy of the government will be more expansionary in 2012, supported by an easing monetary policy and hence increased lending by public banks. According to Market Line forecasts for the year 2012, GDP grew by over 3.1% in 2012 on an annualized basis, with a northward bias propped up by fiscal spending ahead of the 2014 FIFA World Cup, the 2014 presidential elections and the 2016 Summer Olympics.

Current strengths
Growing economy The country's economy registered growth of around 3.20% in 2011. The industrial sector grew by 9.42% in 2011, agriculture grew by 10.51%, and services grew by 9.64%. Gross fixed capital formation grew by 4.7%, while household and government consumption grew by 9.5% and 11.9%, respectively. According to MarketLine's forecasts, Brazilian GDP grew by 3.12% in 2012, with a northward bias due to an expansionary fiscal policy Satisfactory progress in the development of infrastructure Brazil's government actively encourages foreign investment in order to enhance and stimulate economic growth. The government's PAC 2 program envisages an investment in infrastructure that includes building airports and seaports, repairing highways, the development of energy projects in the north, and providing housing, water, and sewerage systems to assist the poorer Brazilian communities. PAC 2 includes new investment projects for 201114 and then post-2014 PAC 2 will involve investments of around $526bn. For the period following 2014, the estimated investment is $346.4bn. The two periods involving PAC 1 and PAC 2 involves a total investment of $872.3bn.
6|Page

 In February 2011, the government announced that it will invest BRL18bn ($8.9bn) on large city mobility under PAC 2. The program is expected to improve public transport infrastructure in 24 cities and may cover road transport, commuter trains, and subways In all cases, the policies are intended to provide an impetus for the all-round development of the nation. Liberalization of trade and investment policies The decrease in import duties and the elimination of non-tariff barriers on exports have facilitated growth in the consumer goods sector. Moreover, liberalization policies have freed the sectors that were earlier under government control to private sector participation. The infrastructure sector in particular has benefited from private sector participation.

Current challenges
Inflation remains above the BCB's target Shortages in food supply, increasing domestic demand, and increases in producer prices are impacting inflation in a big way. Inflation was 6.6% in 2011 against earlier estimates of 4.5%. Brazil recorded inflation of around 5.2% as of March 2012, which is well above the BCB's benchmark target rate of keeping inflation figures below 4.5%. According to MarketLine forecasts, inflation was around 5.5% for the year 2012 and may rise because of indexation (including minimum wage rises linked to nominal GDP), the easing of monetary policy, and expansionary fiscal policies later in the year Inflation in Brazil is also fairly susceptible to supply shocks as food supply is related to climatic conditions and fuel prices. With increasing domestic consumption and high oil prices, inflation is likely to remain a challenge. Appreciating Brazilian real Brazil's manufacturing industry is suffering in the international market due to the appreciating Brazilian real. After a drop in value in 2008, the currency strengthened in the period between early 2009 and August 2011. It appreciated close to 50% against the US dollar between mid-2009 and mid-2011. On the other hand, the appreciated Brazilian real has decreased the competitiveness of Brazilian exports. Brazil's currency has devalued considerably from its temporary high in July 2011, when it appreciated by nearly 40% against the currencies of its main trading partners. However, there is a strong possibility that the Brazilian real will strengthen due to significant demand for Brazilian commodities and foreign capital inflow ahead of the 2014 FIFA World Cup and the 2016 Summer Olympics.

7|Page

Future prospects
Economic reforms A number of reforms, for example regarding public pensions and the simplification of the country's tax structure, have received approval from congress. Several reforms remain in the pipeline related to: Labour laws Policies associated with the hosting of the FIFA World Cup Simplifying procedures to operate a business Regulations governing the distribution of Brazil's substantial oil discoveries. In April 2012, the government introduced a host of measures to cut BRL12bn ($5.9bn) in payroll taxes to promote hiring in sectors that are most hit by foreign competition. Moreover, the government has announced grants worth BRL45bn ($22.2bn) to the Brazilian Development Bank to extend loans at a subsidized rate to the industry.

Energy self-sufficiency Discovery of new oil fields and the development of offshore fields have made Brazil energy self-sufficient, negating years of dependence on foreign producers. Recent discoveries have unveiled large offshore oil reserves that are estimated at over 50 billion barrels. In July 2011, Brazil's state-controlled oil producer Petrobras announced investments worth $225bn through 2015 in order to increase daily output from 2.6 million barrels per day to 4 million barrels in 2015 and 6.4 million in 2020. The country also produces a lot of its power through hydroelectricity and has planned to begin work on the 11,000MW Belo Monte hydroelectric project. The country is also one of the world's largest consumers of biofuels. Brazilian ethanol company Cosan has joined forces with Shell and launched a $12bn joint venture, Raizen. The company expects biofuels to meet 40% of the country's transport fuel mix by 2030. These developments are expected tostrengthen Brazil's energy selfsufficiency.

8|Page

Future risks
Uneven regional development and widening economic disparity Regional disparities in terms of education, employment, and investment remain a matter of grave concern for the government. While real wage levels were soaring in the developed southern regions, they remained largely stagnant in the impoverished northern areas. Industries are chiefly clustered within the southern zones, giving immense scope for employment to the working population. Universities and vocational training institutions remain confined to these areas and cater to the demand for skilled manpower from growing businesses and industries. Irregular economic and social development continues to plague the country, and the government has not done enough to tackle it. Risks from the euro zone In 2011 the EU was Brazil's main trading partner, accounting for a share of over 17% of exports. Any further slowdown in EU trade activity is likely to hamper Brazilian exports. If the EU continues to show signs of weakness this could trigger a fund outflow from the Brazilian market, which would hamper investments and growth in the country. Brazil is a major exporter of commodities, so any downturn in the global economy as a result of the euro zone crisis would hit commodity exports hard Rising household debt Average household debt has risen significantly in Brazil. In November 2011, for instance, household debt reached 43%, meaning that on average, families owe the equivalent of 43% of their income. This could be an indicator that Brazil might be heading for a subprime crisis, if household debt is not brought down. The debt payment-to-income ratio in 2012 currently stands at around 43%. If household debt continues to increase, the debt burden for some Brazilians may reach unsustainable levels.

9|Page

Technology analysis
Overview Brazil's National IT Policy was framed to promote social inclusion by reducing regional divergence and to spur innovation to provide the country with a competitive edge. The policy aims to substitute imported technology with indigenously developed knowledge and to increase opportunities for researchers in strategic areas. It also aims to facilitate the link between industry and academic institutions. The government is encouraging biotechnical research to increase the production of soybean and coffee through high yielding varieties of seeds. Many Brazilian research organizations have entered into agreements with leading international research companies, including Monsanto, for the development of biological research in the sphere of animal and plant sciences through mutual cooperation. This is likely to benefit the agriculture, pharmaceutical, and healthcare sectors. The country's telecommunication policies favour the expansion of telephone exchanges in remote areas. One of the key initiatives taken by the government has been to augment the telecommunication penetration rate among the poorer sections of Brazilian society. During the 1980s and early 1990s, telecommunication was predominantly only available to the affluent and the middle classes. In recent times, however, a change in government policies has transformed telephones into a necessity for the poor.

Current strengths
Government encouragement to improve R&D Brazil accounts for a minuscule contribution to global R&D, the government realizing this fact has given considerable encouragement to foreign entities, prominent universities, and research organizations to foster a culture of innovation. Brazil has devised programs for researchers and teaching professionals to upgrade their skills in universities and technical institutions. The country is encouraging R&D investment by providing several incentives, including depreciation of up to 100% of the R&D investment, and an income tax deduction of up to 200% of R&D investments. By providing tax incentives and legal concessions, the Brazilian government has been largely successful in encouraging foreign companies to bolster the country's technological competence. Information and communication companies of international repute have cemented their bases in Brazil and have signed pacts with either the government or private companies. These efforts to increase investment in Brazil are indicative of the favourable regulatory environment in the country.
10 | P a g e

Current challenges
Low R&D output Despite Brazil's economic growth in recent years, the nation continues to lag behind when it comes to important indicators such as patent filings and R&D spending. According to the USPTO, the number of patents received by Brazil declined from 219 in 2010 to 215 in 2011. This is very low in comparison with countries such as South Korea (5.34%), France (2.03%), and Japan (19.48%), as well as fellow BRIC members Russia (0.12%), India (0.51%), and China (1.53%), but is higher than the share recorded by South Africa (0.06%). Brazil dedicated only 1.0% of its GDP to R&D in 2010. Low R&D spending explains the declining number of patents received by Brazil, which will not only lead to a lack of innovation but will also erode the competitiveness of Brazilian industries.

Low telecommunications penetration in remote areas Although Brazil crossed the 98.8% mobile penetration mark in 2010, this is not equitable: the telecommunications penetration rate remains low in the mountainous and Amazon regions. While mobile penetration in Sao Paulo and Rio de Janeiro reached an average of around 120% in 2010, Maranhao state had a 60% penetration rate while some pockets of Amazonas recorded a rate of only 23%. The northern regions of the country have inadequate access to telecommunications facilities, which can discourage investors from attempting to set up operations there.

Future prospects
Expanding vocational and higher education The program such as National Program for Access to Technical Education and Employment launched in April 201 by government to expand professional education in the country plans to provide 8 million opportunities in vocational training by 2014 to workers and high school students who are aiming for professional qualification. Under the program, the government aims to expand professional education to workers and high school students through fellowship training and to extend the Fund for High School Students to technical education. By the end of 2014, the government plans to offer 75,000 scholarships to Brazilian students to study abroad, including 10,000 scholarships to study in Germany

11 | P a g e

Investment in IT through the "Bigger Brazil" program In August 2011, government announced a host of measures designed to boost certain segments of Brazilian industry, including the software and IT services business. The new program recommended policies to make Brazilian IT companies more competitive globally, which could ultimately end up boosting exports of Brazilian software and services.

Future risks
Declining participation in primary and secondary education The number of students in primary education has been on the decline since 2000. Indeed, the number of students in primary education has declined by nearly 14%, from 21.92 million in 2000 to 18.9 million in 2010. The government's Literate Brazil Program aims to eradicate illiteracy by 2017 by providing young people and adults with access to basic education. Brazil also suffers from low levels of secondary education. The country needs to provide better training and education to its workforce in order to meet the increasing demand for qualified workers in the industrial sector.

12 | P a g e

SOCIO CULTURAL FACTORS

The focus is on three major parts of socio cultural factors in Brazil, being; the cultural characteristics, the social characteristics and the knowledge/education. Cultural characteristics provide a description about aesthetical factors to get an overview about diversity and patterns of life in Brazil. The Hofstede indexes will give an insight about how values in Brazil are influenced by culture and which consequences this fact has. Social characteristics will give an overview over society classes, ethnicity, inequality, crime and health in Brazil. Finally the educational System is analyzed. Fundamental, intermediate and higher education are evaluated, regarding its quality and characteristics

CULTURAL CHARACTERISTICS
Aesthetics Brazil has several regional variations. In spite of being mostly unified by a single language, some regions are so different from each other that they could have become different countries altogether. Brazil is composed by a multicultural mix consisting of Africans, Europeans and Native Americans forming the bulk of Brazilian culture. This fact thus influences the art, literature, music or gastronomy, creating a heterogeneous mix of habits and patterns in society. Bossa Nova, Carnival and samba are some of the most popular exponents of this heterogeneous and rich culture. Hofstede Hofstede indicators give an insight about how values in Brazil are influenced by culture, identifying five primary dimensions to assist in differentiating cultures: Power Distance (PDI) Individualism (IDV) Masculinity (MAS) Uncertainty Avoidance (UAI) Long-Term Orientation. These five Hofstede Dimensions can also be found to correlate with other countries and cultural paradigms, like for example, the Netherlands.

13 | P a g e

Hofstede dimensions of Brazil versus the Netherlands.

Uncertainty Avoidance index (UAI)

Brazil has a high Uncertainty Avoidance index (UAI= 76) which indicates Brazilian societys low level of tolerance for uncertainty. Strict rules, laws, policies and regulations are adopted and implemented, in order to minimize this level of uncertainty. The ultimate goal of the population is to control everything in order to eliminate or avoid the unexpected. As a result of this high Uncertainty avoidance characteristic, Brazilian society does not readily accept change and is very risk adverse.
Long-Term Orientation Index

The Long-Term Orientation Index is 65. Brazilians are expected to be patient and tolerant of problems in the short term since their focus will be more on the future consequences of their actions today. As a result change tends to happen more slowly in these societies and business relations may take longer to develop especially for outsiders.
Individualism

The biggest difference between Brazil and the Netherlands is the individualism. The Netherlands are really individualistic compared to the more collectivistic Brazilian society.
14 | P a g e

Masculinity

The masculinity shows the more feministic characteristics of the Netherlands which can be seen as one of the countries with the same values and roles for women and men.

Entrepreneurship Brazil is a leader in entrepreneurships, with an estimated one in eight adults being Entrepreneurs. Brazil has an active 12.8% of the population approximately which undertakes entrepreneurial activities. The world average is 10.6% so the Brazilians are above average It can be said that the Brazilians take these business initiatives either due to business opportunities or due to the lack of options in the labour market.

15 | P a g e

SOCIAL CHARACTERISTICS
Society Classes A stereotype Latin American society comprises of a wealthy landed elite versus masses of poor peasant and workers. The modern Brazilian society cannot be reduced to this stereotype. In the twentieth century the system of social classes evolved from this Latin American stereotype system to a Brazilian system. Brazilian system consists of four social classes: 1) High class The high class people have more property and prestige. 2) Formally middle class The formal middle class consists of formally employed people, a technical work force based on knowledge and skills. 3) Informally middle class The informal employed people, self-employed businessmen who accounted nearly half of the economically active population. 4) Lower class The lower class lives below the income National poverty line and includes 21.5% of the countrys population

Ethnicity In the early sixteenth century, the original Amerindian population of Brazil range from 2 to 5 million. Portuguese were the first European immigrants who went to Brazil. During the colonial period, the Portuguese colonists imported hundreds of thousands of slaves form Africa for labour on the sugar of coffee plantations. When slavery became less feasible after 1850 Italian immigrants began replacing the slaves on coffee plantations, while primarily Brazils racial mix was made more diverse with the arrival of Japanese and Middle Eastern immigrants in the early twentieth century. All the racial and ethnic groups arrived in Brazil intermingled and intermarried. Many individuals are therefore, difficult to classify in racial terms. Discrimination is usually not explicit, but there is a very strong correlation between light colour and higher income, education and social status. Just a few blacks reach positions of wealth, prestige and power, except in the arts and sports.

16 | P a g e

Language The official language of Brazil is Portuguese which almost all of the population speaks and is virtually the only language used in newspapers, radio, television, and for business and administrative purposes Brazilian Portuguese has had its own development, mostly similar to 16th century Central and Southern dialects of European Portuguese Brazil is the only Portuguese-speaking nation in the Americas, making the language an important part of Brazilian national identity and giving it a national culture distinct from those of its Spanish-speaking neighbours. Minority languages are spoken throughout the nation. One hundred and eighty Amerindian languages are spoken in remote areas and a significant number of other languages are spoken by immigrants and their descendants. There are significant communities of German and Italian origins in the Southern and South-eastern regions, whose ancestors' native languages were carried along to Brazil, and which, still alive there, are influenced by the Portuguese language. Inequality Brazilian society had originally the Mediterranean double moral standard for men and women. Men were expected to demonstrate their masculinity, while proper women were supposed to remain virgins until marriage and to be faithful to their husbands. At the beginning of the twentieth century in Brazil women already were allowed open access to schools and employment, but they were not on equal foot with men in family affairs. Men were automatically heads of households and married women were legally subordinate to their husbands. Only in 1988 women became entirely equal to men for all legal purposes. Professions that traditionally were dominated by men, such as law, medicine, dentistry and engineering are becoming more balanced. The Gender empowerment measure (GEM) is 0,504 for Brazil, saying women have low political participation, economic participation and power over economic resources. Crime Brazil poses high rates of violent crimes, such as murders and robberies. The homicide rate in Brazil is very high with 25.2 homicides per 100,000 inhabitants. Most of these life-threatening crimes can be traced back to the drugs trade of cocaine and to alcoholism. Brazil also poses carjacking, express kidnapping, trafficking, domestic abuse, slavery and internet hacking. A big problem is the human rights violations during capture and custody of suspects. But on the other hand, criminal charges have been described as extremely lax, allowing violation criminals an early return to society.
17 | P a g e

 The justice system is slow, mainly because of loopholes that allow for numerous appeals. It is said that a majority of crimes are not solved. Health According to the Human Development Report Brazil is a high developed country. The human development index is a summary measure of human development which measures the average achievements in a country in three basic dimensions of human development; life expectancy, knowledge and GDP.

18 | P a g e

EDUCATION / KNOWLEDGE
Education The principles for education in Brazil are established in the 1988 Brazilian Constitution, when was decided that education is a right for all. To make this happen education is made free of charge. The education system consists of 3 different categories 1) Fundamental education 2) Intermediate education 3) Higher education. Preschool or infant education is added to this hierarchical structure for the purpose of providing assistance to children below 7 years of age. Fundamental school, in Brazilians language Ensino fundamental, is compulsory to 7 to 14 years old. Intermediate schooling, Ensino Mdio, spreads over at least three annual grades. The public fundamental and intermediate schools are mostly of low quality. Private schools have better quality but only the rich people can pay this. Higher education in Brazil, Ensino Superior, is organized in two levels: graduate and undergraduate. 1) Undergraduate is for updating, specializing and further studies courses. 2) Graduate is for master and doctorate courses. Different from intermediate education, public higher education is of relative high quality and is still free of charge. But public universities have limited places and entry is determined by highly competitive exams, thereby excluding those who have not had a high quality secondary education or attended an expensive preparatory course Brazils education index is 0.891. The quality fundamental and intermediate education in Brazil has gradually got worse, or at best remained stable, according to the Basic Education Evaluation system (SAEB). The public higher education is in comparison to other nations in South America of high quality, but in comparison with the Netherlands it isnt. To measure the quality of higher education, the Times Higher Education Supplement ranking is commonly used.

A nice fact of the Brazilian education is the equality between genders. Compared to other countries, Brazil is a country where women have a slight advantage in the education system,

19 | P a g e

Knowledge Brazil is leading in the export of oranges, sugarcane and coffee. It also exports other important export products like soy beans, rice, tobacco, bananas and cotton. Therefore Brazil is well known for the agriculture. In 1999 over 17.3 percent of the active working population was working in the agriculture Nowadays agriculture is still important for the economy of Brazil. Next to agriculture Brazil has a lot of knowledge about hydro energy and recycling. Brazils electricity consists for over 80% of hydro power and in the future there are plans for over 30 dams in the Amazon. Brazil is the biggest aluminium recyclers in the world. This is one part where Brazilians are a nation of sustainability.

20 | P a g e

ENVIRONMENTAL ANALYSIS
Brazil is a country with a diverse, complex geography. However, like every other country in the world, it also has its own set of environmental issues. These issues threaten different parts of the natural abundance and are being addressed by a variety of organisations and initiatives. The main environmental issues faced by Brazil include: Deforestation Brazil has the renowned Amazon Rainforest and where the basin is situated, deforestation has become a major problem in this area. Every day, vast proportions of these forests, significant for the Oxygen that they produce, are being torn down for timber, industrial development and agriculture. When a tree is cut down, it releases carbon dioxide (which it has been storing) as a greenhouse gas, which will increase the risk of climate change. Acid Rain When the levels of Sulphur Dioxide or Nitrogen Oxide rise in the atmosphere, it results in rain and precipitation that is high in these gases, which are harmful to the soil and delicate ecosystems on which they settle. In fact, acid rain can kill freshwater fish as well as the plants and animals that depend on neutral or alkaline conditions in which to live. When an area is subject to ongoing acid rain, the natural pH (acidity level) of its soil and water changes, which limits the plants and animals that can thrive there.

Endangered Species Due to the fertile conditions of Brazil, it has always been the home of an array of animal and plant species. However, due to hunting, the destruction of habitat and the introduction of foreign, competitive species, Brazils natural fauna has experienced a huge decline in numbers. At the moment, there are hundreds of species under threat of extinction. Some of them include the jaguar, sea turtle, spiny rice rat, bushy-tailed opossum, black-faced lion tamarin, Brazilian arboreal mouse, ring-tail monkey, Coimbras titi monkey, golden-rumped lion tamarin, Northern Bahian blond titi monkey and northern muriqui. Air Pollution Air pollution in Brazil has increased, mainly as a result of the rapid urbanisation and industrial development taking place in most of the city centres. As the population numbers boomed, cities were forced to expand with little regard for their environmental responsibility. This, in turn, meant that the infrastructure and so on was built using products and methods that release harmful pollution into the air. Many of the cities and towns are exploring alternatives to reduce their pollution production.

21 | P a g e

Waste Disposal Like most major countries in the world, Brazil produces enormous amounts of solid waste, or garbage. This has to be taken away from occupied areas and destroyed or disposed of. However, such waste poisons the soil, air and water, creating the dilemma of what to do with it. Currently, Brazil produces more than 161 000 tons of solid waste every day. Almost twothirds of Brazilian municipalities use landfills to dispose of such waste. As landfills become larger, natural areas have to be reduced and the soil in and around the landfills becomes toxic, or unable to sustain life. The solution includes the use of recycled and recyclable goods, as well as a major education campaign that assists with the responsible use and disposal of various items, both in the home and workplace.

22 | P a g e

ETHICAL ISSUES
When business organizations move from domestic to global competition, they are finding that cultural values vary significantly across national boundaries, and are likely to affect business practices. A primary reason for exploring the effects of culture on ethics is the increased globalization of business. This trend, in turn, is characterized by a diverse array of interorganizational arrangements that require cross-cultural interaction. BRAZIL Businesses planning to enter Brazil should be aware of the ethically challenging situations, and formulate strategies to address potential corruption ahead of time. The two important issues are Cultural concepts and ethical challenges. Brazil faces several bureaucratic and systematic difficulties, with a history of political corruption that might slow future progress. Brazilian business norms are changing rapidly, and many past practices that were ethically questionable are quickly disappearing, especially in the business capitals of the country. Brazil scored low on individualism, and hence is considered a collectivistic country. This basic finding will help us to discover a lot of thing about Brazil. Cultural Concepts The so-called Jeitinhio Brasileiro is commonly interpreted as giving someone a break. In Brazil, the Jeitinhio is not considered as a form of corruption but a demand for empathy and help when confronting overly rigid or conservative rules. Bureaucratic regulatory processes often lead to alternative ways of accomplishing objectives. These breaks rarely require explicit bribery but should be carefully scrutinized per company policy. A despachante is an intermediate who facilitates applications, permits and business transactions. The usefulness of a despachante is because of the complex existing regulations for establishing and running a business. A despachante is mostly an acknowledged professional from an accounting firm that facilitates transactions for a fee. An absence of official registration or the inability to provide receipts should be initial indications of corruption. If using a despachante, check for references and clarify the type of services that you are seeking.

23 | P a g e

ETHICAL CHALLENGES
Political corruption has been a major issue for Brazil, and the country has experienced a number of scandals, including the 1992 impeachment of President Collor de Mello and the 2005 resignation of finance Minister alfonso Palocci. Playing to the widely-held belief that corruption is a root cause of Brazils income disparity, President luiz Incio lula da Silva was reelected in 2006 with a declared personal war on corruption. Since then, Brazil has ratified the oECd anti-Bribery Convention, the United nations Convention against Corruption, the OAS InterAmerican Convention against Corruption and the United nations Convention against Transnational organized Crime. Federal agents have become increasingly effective at targeting crimes like tax evasion, but judicial processes and responses remain slow. These efforts have earned the country a Moderate rating in the 2006 Global Integrity Index. Ethics in Sports Brazil convened the International Convention against Doping in Sports on December 18, 2007. It invited the select group of 138 countries united in the supranational effort to promote fair play and the right to have transparent and honest competitions. Ethics in Education In 2008, UNESCO in Brazil, along with The House of Representatives and the All for Education Movement initiated a great national discussion on educational ethics and responsibility. It propped that a national Law on educational responsibility intended to ensure that key decision makers commit themselves in reaching goals established by educational policies.

24 | P a g e

Legal Environment
Brazil is organized as a Federal Republic and its legal system is based on Roman civil code. A foreign company must obtain written permission to operate a branch in Brazil. The Brazilian legal system is based on Civil Law tradition. The Federal Constitution, in force since October 5th, 1988, is the supreme rule of the country and is the characterized by its rigid written form.

The Constitution organizes the country as a Federative Republic, formed by the indissoluble union of the states and municipalities and of the Federal District. The 26 federate states have powers to adopt their own Constitutions and laws; their autonomy, however, is limited by the principles established in the Federal Constitution.

Municipalities also enjoy restricted autonomy as their legislation must follow the dictates of the Constitution of the state to which they belong, and consequently to those of the Federal Constitution itself. As for the Federal District, it blends functions of federate states and of municipalities, and its equivalent to a constitution, named Organic Law, must also obey the terms of the Federal Constitution. The powers of the Union, as defined within the Constitution, are the Executive, the Legislative and the Judiciary, which are independent and harmonious amongst them.

The head of the Executive is the President of the Republic, which is both the Chief of State and the Head of Government and is directly elected by the citizens. The Legislative, embedded in the form of National Congress and consists of two houses: The Chamber of Deputies (lower house) and the Federal Senate (upper house), both constituted by representatives who are elected by the citizens. The Judicial powers are vested upon the Federal Supreme Court, the Superior Court of Justice, the Regional Federal Courts and Federal Judges. There are also specialized courts to deal with electoral, labour and military disputes.

25 | P a g e

 The Judiciary is organized into federal and state branches. Municipalities do not have their own justice systems, and must, therefore, resort to state or federal justice systems, depending on the nature of the case. The judicial system consists of several courts. The apex is the Federal Supreme Court and is the guardian of the Constitution. Among other duties, it has exclusive jurisdiction to: (i) Declare federal or state laws unconstitutional (ii) Order extradition requests from foreign States (iii) Rule over cases decided in sole instance courts, where the challenged decision may violate the Constitution. The Superior Court of Justice is responsible for upholding federal legislation and treaties. The five Regional Federal Courts, have constitutional jurisdiction on cases involving appeals towards the decision ruled by federal judges, and are also responsible for cases of national interest and crimes foreseen in international pacts, among other duties.

The jurisdiction of the Federal Judges include: being responsible for hearing most disputes in which one of the parties is the Union (State); ruling on lawsuits between a foreign State or international organization and a municipality or a person residing in Brazil; and judging cases based on treaties or international agreements of the Union against a foreign State or international body. State-level justice in Brazil consists of state courts and judges. The states of Brazil organize their own judicial systems, with court jurisdiction defined in each state constitution, observing that their legal scope is limited by those that do not concern the federal judicial ordainment.

The legislative process begins, in broad terms, with a bill of law in one of the Congress Houses either the Chamber of Deputies or the Federal Senate, thus called the Originating House. Once the bill is voted, it can either be rejected or forwarded to the other house, which is then called Reviewing House. There the bill can be rejected, approved or amended to be then returned to the Originating House. Depending on the object of the bill, it is forwarded for the presidential sanction or veto, as a whole or in part. If the bill is vetoed, the members of the National Congress can override such veto.

26 | P a g e

SUGGESTIONS
Overview

Extremely large amount of natural resources and attractive market Brazil is largest economy in South America. Yet to live up to its economic potential as the worlds' 7th largest economy Most industrial development is concentrated around Rio de Janeiro and Sao Paulo, some efforts made to expand north. Economy characterized by high inflation, protectionism, corruption, and political and social instability Brazil attempting to expand development, productivity, and integrate into the world economy.

Opportunities

Chemical products computer products electronic components food processing equipment medical equipment oil and gas field machinery plastics pollution control equipment telecommunications products wheat

Marketing Tips

Country has diverse and sizable domestic market Booming manufacturing export market Population of over 155 million mostly located on the coast Telecommunications systems are fairly good throughout the country, and a growing number of international transactions are being doing by fax and the internet. Liberalized regulations and procedures affecting imported software, business registration, and international franchising have added new and promising markets, although most market segments are already open to foreigners Some protectionist regulation still remains in certain industries Brazilians tend to distrust foreigners and insist on a high degree of control in dealings. Pricing difficult because of high inflation, although government has been taking steps to lower it There is a large amount of language diversity; official language being Portuguese. English is widely used in the business community, but other European languages such as German and French are also spoken Product sales are typically price driven, therefore price research a high priority Customer service is considered crucial for all new products

27 | P a g e

Business Culture

Portuguese-speaking Brazilians tend to be less formal than their Spanish-speaking compatriots. Handshakes are the most common introduction tool and tend to be prolonged by most standards. Business cards are a necessity and exchanged at all levels of business interaction. Brazilians tend to be nationalistic and xenophobic, insisting on only doing business with foreigners interested in long-term commitment. Contacts and introductions are crucial in meetings. A mutual business acquaintance is required to make introductions. Standards of dress are less formal than other Latin American countries

Some Dos and Donts if visiting Brazil Do's

Don'ts It is wise to know Brazilian history and culture, including the Portuguese language. If invited out, bring a small gift. If you are bringing flowers, never use purple, as it is associated with death.

Avoid wearing green or yellow (same as the flag). Do not eat anything with your hands. Do not drink from a bottle or can, use a glass. Don't assume Spanish is enough, can be insulting. Never begin conversation during a meal.

28 | P a g e

CONCLUSION

29 | P a g e

BIBLIOGRAPHY

30 | P a g e