BRAZIL

Brazil

Largest economy in
Latin America - always
attracted interest from
abroad.
Brazil has encouraged
even greater interest
from foreign investors in
the latter half of the
1990s due to increasing
integration with
Mercosur partners of
Argentina, Paraguay,

BRAZILS CULTURE
Jasser Garca

BRAZILIAN CULTURE
Is very diverse. Brazil was a colony of Portugal
for over 3 centuries. Large numbers of settlers
from Portugal arrived during this period (nearly
1 million ) and brought their culture to the
colony. The native inhabitants of Brazil had a
strong contact with the colonists. Many were
exterminated, others mixed with the
Portuguese. For that reason, Brazil also holds
Amerindian influences in its culture, mainly in
its food and language (Brazilian Portuguese
has hundreds of words of Indian origin, mainly
from the Tupi-Guarani)

Meeting Etiquette

Men shake hands when greeting one another,

while maintaining steady eye contact.

Women generally kiss each other, starting with

the left and alternating cheeks.

Hugging and backslapping are common greetings

among Brazilian friends.

If a woman wishes to shake hands with a man,

she should extend her hand first.

Gift Giving Etiquette

If invited to a Brazilian's house, bring the hostess

flowers or a small gift.

Orchids are considered a very nice gift, but avoid

purple ones.

Avoid giving anything purple or black as these are

mourning colours.

Handkerchiefs are also associated with funerals, so

they do not make good gifts.

Gifts are opened when received.

Dining Etiquette

If you are invited to a Brazilian's house:

Arrive at least 30 minutes late if the invitation is for

dinner.

Arrive up to an hour late for a party or large gathering.

Brazilians dress with a flair and judge others on their

appearance. Casual dress is more formal than in
many other countries. Always dress elegantly and err
on the side of over-dressing rather than underdressing.

If you did not bring a gift to the hostess, flowers the

next day are always appreciated.

Brazil
Social - Cultural Diversity

Brazil is a multinational country with an

extraordinary ethnic / linguistic diversity
particularly in the Atlantic Rainforest region
from where the colonization started. According
to the Brazilian Institute for Geography and
Statistics (IBGE), more than 10 million
immigrants came to Brazil, until today
(including 4 million african slaves).

Language

The official language of Brazil is Portuguese,

which is spoken by the overwhelming majority
of the population (more than 99%). Minority
Languages include indigenous languages, and
languages of more recent European and Asian
immigrants. Approximately 210 languages are
spoken or signed by the population, of which
80 are indigenous to the area.

Within Brazil, there are no dialects of

Portuguese, but only moderate regional
variation in accent, vocabulary, and use of
personal nouns, pronouns, and verb
conjugations. Variations tend to diminish as a
result of mass media, especially national
television networks that are viewed by the
majority of Brazilians.

Religion

Religion in Brazil is remarkable both in its high adherence

level compared to other Latin American countries as well as
its diversity.
In 1889, when the Brazilian Constitution was set forth, Brazil
ceased to have an official religion. The Constitution
guarantees absolute freedom of religion. Over seventy
percent (70%) of the population declared themselves Roman
Catholic in the last census (2000).However, there are many
other religious denominations in Brazil. Some of these
churches are the: Protestant, Pentecostal, Episcopal,
Methodist, Lutheran, and Baptist. There are over a million
and a half Spiritists or Kardescists who follow the doctrines of
Allan Kardec. There are followers of The Church of Jesus
Christ of Latter-day Saints, small minorities of Jews, Muslims,
Buddhists and numerous followers of Candomble and
Umbanda.

BRAZILS POLITICAL
ENVIRONMENT
Carla Rodrguez

Political Environment

Individualism Versus Collectivism

Brazils

IDV rank - 38, indicates that Brazil is a

very collectivistic society
Collectivism indicates that:
Value

is placed on the needs of the group

Culture is extremely family orientated
Key decisions are made with regards to family
Family is not restricted to immediate family
The culture desires unity and remains loyal to that unit

Political Ideology

One of the largest

Democracies in the
world
Politics of Brazil takes
place in a framework of
a Federative Republic
The President of Brazil
is both head of state
and head of
government
There are two legislative
houses: an 81 member

Current Gobernment

Ruling Party - The Brazilian

Social Democracy Party
(Partido da Social Democracia
Brasileira, PSDB)

Centre-left Political Party

Leader of the Party Luiz

Ignacio da Silva, also
president of the country
since 2002.
Government based on the
organized working class but
fundamentally accepts the
capitalist system .

Political Risk

The increasing divergence between US and

Brazilian foreign policy creates high geopolitical
risk.
Political risk is low in the short-term.
High social risk is the result of continued
deterioration in social conditions contrary to the
expectations of the electorate.
Brazil is entering a presidential election year potential shift of power in the global economy can
result in heightened volatility in any country's
currency and markets.

Foreign Policy

Brazil's foreign policy is designed to help

protect the countrys:
national interests,
national security,
ideological goals,
and economic prosperity.

Brazilian foreign policy has recently aimed to

strengthen ties with other South American
countries and act at times as a countervailing
force to U.S. political and economic influence
in Latin America.

U.S.A.-Brazil

The increasing
divergence between US
and Brazilian foreign
policy creates high
geopolitical risk.
This will lead to
increasing
confrontations between
the US and Brazil and
the continued decline of
foreign direct
investment.

Making Business in
Brazil:
Negotiate deals that benefit or are concerned

with the whole group

Require heavy distinction between group
members and non-group members
Ethical judgments are made based on the
consequences of the action relevant to the
group
Competition is not emphasized because it
would single out a member of the group

BRAZILS LEGAL
ENVIRONMENT
Daniella Villanueva

Federal Republic the

26 states, municipalities
and the Federal District.
The states have the
power to adopt their own
Constitutions and laws.
Civil law country based
on Roman civil code.

The Brazilian legal system is based on codes

and legislation enacted by the appropriate
legislative power at the federal, state and
municipal levels. The basic law of the country
is the Brazilian Constitution, which establishes:
the

system of government
the attribution of powers to the Legislative,
Executive and Judiciary branches of government
the legislative competence of the federal, state
and municipal administrations.

LEGAL ENVIRONMENT
FACING BUSINESS

Foreign investment has been welcome in Brazil

for a long time and constitutes an important
source of capital for development of the
Brazilian economy.
The stability of the Brazilian foreign investment
legislation is a clear indication of the countrys
desire to attract overseas investors.

Foreign investment is not subject to government

approvals or authorizations.
No requirements regarding minimum investment
or local participation in capital, except in very
limited cases:
Such as in financial institutions
insurance companies
other entities subject to the regulating authority of the
Central Bank of Brazil

Foreign participation, however, is limited or

forbidden in few areas of activities.

Restrictions on Foreign
Ownership of Companies

Foreign capital may be freely invested in Brazil, and it

enjoys the same treatment granted to Brazilian
capital, with the few exceptions:

Property of Rural Land: purchase of rural land by nonresidents requires prior approval for properties with more
than 25,000 acres
Press and Broadcasting: management by non-residents is
forbidden and ownership is restricted to 30% of the total
capital of the company
Banking and Insurance: opening of new foreign banks and
insurance companies, or of new branches by foreign banks
already operating in Brazil is frozen until a new law
regulating financial activities is enacted (such prohibition
may be circumvented by a presidential decree authorizing
the investment).

Arbitration

In 2001 the Brazilian Supreme Court upheld

the constitutionality of the Brazilian statute
validating contractual arbitration provisions.
Arbitration is only permitted with regard to
negotiable rights, which comprise most of
commercial transactions.
The foreign arbitration awards has to be
ratified by the Brazilian Supreme Court.

Multilateral treaties

Mercosur
Promote

free trade and open up borders across

South America.
Mercosur will greatly influence companies and
potential entrants doing business in South
America.

BRAZILS
ECONOMICAL
ENVIRONMENT
Alejandro Bobadilla

Brazil has a modern capitalist economic

system.
Actually ranked as the highest among all
the South American economies and is in a
good position on the world economy.
Their economy is based on agriculture,
mining, manufacturing and service sector.

They have an export oriented economy.

The main exports are transport equipment,
iron ore, industrial raw materials,
soybeans, footwear, coffee, autos,
automotive parts, machinery.
Their primary trading partners are United
States, European Union and Argentina.

GDP

$1613 million dollars (2.6% of the world)

$10,200 Per Capita

Inflation

Inflation Rate

5.26% (April 2010)

Unemployment

Unemployment Rate

7.30% (April 2010)

Conclusion

Brazil is the best option in South America to do

business and to invest your money.