INTERNATIONAL BUSINESS

TOPIC: BRAZIL
PRESENTED BY: MARYAM ALI
KAZMI
ROLL# 36
M.COM III
OUTLINE:

 Introduction
 Economy
 Products vs services
 FDI
 MNE’S
 Trade regions
 Culture
INTRODUCTION:

 Brazil lies on the central east coast of the continent of South

America. It has 26 states and one federal district of which the
capital is Brasilia.
 Due to its vast land mass the country is also divided into five
regions.
 Brazil is the fifth largest country by geographical mass in the
world and the fifth most populated country in the world.
 latest census revealing there are over 190 million people
living in Brazil. The largest cities are São Paulo (11 million).
Cont…

 Brazil was officially "discovered" in 1500.

 Pedro Álvares Cabral (a portuguese) discovered Brazil on his
way to India.
 Has become a republic in 1889.
 Jair Bolsonaro is the 38th and current President. He was
sworn in on 1 January 2019 following the 2018 presidential
election.
ECONOMY:

 The Economy of Brazil is the world's ninth largest economy by

nominal GDP and eighth largest by purchasing power parity.
 Largest economy in Latin America.
 The Brazilian economy is characterized by a mixed economy.
 BRIC (a grouping acronym that refers to the countries of
Brazil, Russia, India and China, which are all deemed to be at
a similar stage of newly advanced economic development)
 Brazil is not a developed country. Brazil is still considered
as developing due to its low GDP per capita, low living
standards, high infant mortality rate and other factors.
CONT…

 The currency used in Brazil is the real. One real is equal to 100
centavos (a monetary unit).
 "real" is pronounced "hey-al" and the plural, "reais", is pronounced
"hey-ice".
 Most modern banking system on the planet.
 High entrepreneurial country.
 Pioneering research in fields of oil in deep water
 GDP STRUCTURE: Agriculture 6.1%, Industry 25.4%, services 68.5%.
 GDP: $1.868 trillion.
CONT…

 EXPORTS: $217.7 billion

 Main exports: soybeans and related soy products; transport
equipment and components, oil and oil products, meat, iron
ore, chemical and metal products.
 IMPORTS: $150.72 billion
 Main imports: Machines, electrical and transport equipment,
chemical products, oil automotive parts , electronics.
PRODUCTS VS SERVICES:

 There are 59.9% services in the country.

 41.1% are products manufactured in country.
FDI:

 Foreign Direct Investment in Brazil increased by 8399.61 USD Million

in February of 2019. Foreign Direct Investment in Brazil averaged
3785.57 USD Million from 1995 until 2019, reaching an all time high of
16274.70 USD Million in December of 2010 and a record low of -
181.50 USD Million in July of 2016.
 Brazil's Direct Investment Abroad expanded by 824.7 USD million in
Sep 2018. Its Foreign Portfolio Investment fell by 211.5 USD million in
Sep 2018.
MNE’S:

 1 Vale Mining (except Oil and Gas)

 2 JBS Food Manufacturing
 3 Gerdau Primary Metal Manufacturing
 4 Petrobras Oil and Gas Extraction
 5 CSN Primary Metal Manufacturing
 6 Fibria Paper and Allied Products
 7 Braskem Chemical Manufacturing
 8 Embraer Transportation Equipment Manufacturing
 9 Suzano Papel Paper and Allied Products
 10 BRF Food Manufacturing
TRADE ORIGINS:

 The top export destinations of Brazil are China($48B), the United

States ($25.1B), Argentina($17.8B), the Netherlands ($7.57B)
and Germany($6.18B).
 The top import origins are China ($27B), the United
States ($20.4B), Argentina ($9.3B), Germany ($9.3B) and South
Korea ($5.39B).
CULTURE:

 The culture of brazil is mostly influenced by the portuguese.

 Fusion of portuguese, Africa and indigenous indians.
 Unique values and attitudes of its citizens.
Work culture:
 There are laws in Brazil that require all foreign companies to hire locally.
 Brazilians enjoy many labor-friendly protections, including one-month
annual bonuses and meal and transportation stipends.
 Their behavior in everyday life is more collectivist.
CONT…

 Brazilans prefer to do business with those they know and trust.

 Centralization of power is frequently mentioned as a pronounced characteristic in brazilian
businesses.
work practices:
 9:00 am to 7:00 pm (Monday to Friday)
 9:00 am to 1:00 pm ( Saturday)
Language:
 Despite the fact that Portuguese is the official language Brazil and the vast majority of
Brazilians speak only Portuguese, there are several other languages spoken in the
country.
CONT…

RELIGION:
 Roman catholicism is the predominant religious faith in brazil.
 The main catholic holidays are also public holidays in brazil.
Thank you