PESTEL ANALYSIS OF BRAZIL

Ankur P (12) Annapurna C (13) Ashish K (20) Himanshu M (41) Pranit B (55)

BRAZIL

History of Brazil

Following three centuries under the rule of Portugal, Brazil became an independent nation in 1822. By far the largest and most popular country in South America, Brazil overcame more than half a century of military intervention in the governance of the country when in 1985 the military regime peacefully ceded, power to civilian rulers.

Cont

a population of over 201 million, with a population growth rate of 1.19%. shares a border with almost every other country in South America. Brazil is the only Portuguese-speaking Latin American country Brazilians are known throughout the world for their creativity, their ability to learn, to adapt to new circumstances, and to incorporate technical innovation. the third largest democracy (after India and the United States) .

POLITICAL

POLITICAL

Government and Political Figures

Conventional Name: Federative Republic of Brazil Government type: Federative republic Capital: Brasilia Day of Constitution: 5 October 1988 Legal system: based on Roman codes.

Four political parties

Workers' Party (PT), Brazilian Social Democracy Party (PSDB), Brazilian Democratic Movement Party (PMDB), and Democrats (DEM). Almost all governmental and administrative functions are exercised by authorities and agencies affiliated to the Executive.

Political system
The Brazilian Federation is the "indissoluble union" of three distinct political entities: the States, the Municipalities and the Federal District. They, are the "spheres of government". The Federation is set on five fundamental principles: sovereignty, citizenship, dignity of human beings, the social values of labour and freedom of enterprise, political freedom.

India Brazil relation

The President of India, Pratibha Patil with Brazilian President Luiz Incio Lula da Silva in April 2009. India and Brazil enjoy strong bilateral relations which is clearly reflected in various international forums such as IBSA.

ECONOMICAL

Inflation forecast

Brazil is the largest national economy in Latin America, the world's sixth largest economy at market exchange rates and the ninth largest in purchasing power parity (PPP), according to the International Monetary Fund and the World Bank. Brazil has a free market economy with abundant natural resources. The Brazilian economy has been predicted to become one of the 4th largest in the world in the decades to come, the GDP per capita following and growing.Its current GDP (PPP) per capita is $10,200, putting Brazil in the 64th position according to World Bank data. It has large and developed agricultural, mining, manufacturing and service sectors, as well as a large labor pool

Macro-economy analysis
Currency unit Brazilian Real (BRL=US 0.56) SDR exchange rate for Brazilian Real SDR/Unit = 0.30 Unit/SDR = 3.296230 Major Trading Partners: Imports: US 18.3%, Argentina 8.9%, Germany 8.1%, China 5.9%,Nigeria 5.6%, Japan 4.6% (2009) Exports: US 20.8%, Argentina 7.5%, Netherlands 6.1%, China 5.6%,Germany 4.1%, Mexico 4% (2008)
GDP - Purchasing Power Parity $1.492 trillion (2009 est.)

PROBLEMS OF BRAZIL

POVERTY CRIME LOW EDUCATION PERCENTAGE INFANT MORTALITY RACIAL INEQUALITY(BLACK PPL)

SOCIAL

SOCIAL
Demographics Educational Levels Distribution of Income Social Mobility

OVERVIEW
Irrigated land - 26,560 sq km (1998 est.) Natural hazards - recurring droughts in northeast, floods and occasional frost in south . Population -190 MILLION(2008 est.) Age structure 0-14 years: 26.1% (male 24,789,495/female 23,842,715) 15-64 years: 67.9% (male 62,669,392/female 63,719,631) 65 years and over: 6% (male 4,549,552/female 6,542,009) (2005 est.)

continued
In 2010, the illiteracy rate was 9.48% Roman Catholicism is the country's predominant faith. Brazil has the world's largest Catholic population. The official language of Brazil is Portuguese Currency of brazil is Brazilian real

Style and life

largest metropolitan area in Brazil So Paulo, Rio de Janeiro, and Belo Horizonte all in the Southeastern Region.

Samba and hip dance are the most famous, in the world. Brazilian Ballroom dance is also very popular. Carnival celebrations are believed to have roots in the pagan festival of Saturnalia, which, adapted to Christianity

Games

The most popular sport in Brazil is football (soccer). The Brazilian national football teamis ranked among the best in the world according to the FIFA World Rankings, and has won the World Cup tournament a record five times On 2 October 2009, Brazil was selected to host the 2016 Olympic Games, the first to be held in South America

TECHNOLOGICAL

Technological Factors
Advantage

of Technology In terms of Economies of Scale

New

Discoveries & Innovations

& Cost of Technology Transfer

Speed Rate

of Obsolescence

CONTINUED..

There are about 2,500 airports in Brazil So Paulo-Guarulhos International Airport, near So Paulo, is the largest and busiest airport of brazil.

CONT.

Brazil's most notable technological hubs are the Oswaldo Cruz Institute, the Butantan Institute, the Air Force's Aerospace Technical Center, the Brazilian Agricultural Research Corporation and the INPE. The Brazilian Space Agency has the most advanced space program in Latin America, with significant capabilities in launch vehicles, launch sites and satellite manufacturing.

CONT

Uranium is enriched at the Resend Nuclear Fuel Factory to fuel the country's energy demands and plans are underway to build the country's first nuclear submarine.

Environmental

Environmental

The country has abundant reserves of natural resources such as iron, copper, nickel, manganese or tin. Despite having an estimated gold reserve of 2,000 tones the country accounts only for 2.5% of the global production and many regions are still unexplored. Recent development includes the construction of two new railways connecting central Brazil to ports in the states of Rio de Janeiro and Bahia, and the construction of Acu Super port, a port and industrial complex one and a half times the size of the island of Manhattan that should be completed by 2012.

LEGAL

LEGAL

The Brazilian legal system is based on Civil Law tradition and the Federal Constitution, in force since October 5th, 1988, is the supreme rule of the country. 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. Federal law also has the exclusive authority to rule on matters such as expropriation, energy, telecommunications, insurance, foreign trade, nationality and citizenship. Besides the Federal Constitution, the main legal documents in Brazil are the Codes. The most important are the Civil Code, the Tax Code, the Penal Code and the Civil Procedure Code.

Benefits of setting up Business in Brazil

Ruralurban migration and the spread of modern agricultural methods are bringing an increasing proportion of the population into the market for manufactured goods. The Brazilian public is highly receptive to foreign brand names, which can demand a premium price over competing domestic products. Has a democratic government. Has the largest healthcare market in Latin America. Has environmental industries that are valued at US$ 5 Billion. Has a modern telecommunications and banking system. Is one of the so called BRIC groups.

Future scenarios

Brazil's macroeconomic prospects are good . Average real GDP growth is forecast at 3.7% in 2007-2011. By 2015, Brazilian households are expected to have an annual disposable income over US$15,000.

CONCLUSION
Brazil is a developing country South America's leading economic power and a regional leader. Highly unequal income distribution remains a pressing problem Its famous for carnival festival and coffee.

Thank you