Pest Brazil

brassiereZIL PEST Political milieu Greed and Corruption Increase in commandment expenditures Political stability and emphasis on consistent sparing policies and growth Position of conception-wide influence and power (BRIC) Many environmental restrictions and regulations (Protection of Amazon) Going into crinkle utmost bureaucracy, lack of transparency of rules and slow legal procedures (are hurdles to overcome and absorb brazil a difficult farming to do business in) The spacious opportunities for impertinent companies in Brazils growing economy have to be weighed up against the countrys relatively mellowed taxes and labor costs // labour rules are overgenerous to workers Foreign exchange rules are in favour for investors outside the country but with some restrictions by certain states (freely allow dividends and capital to be repatriated to investors outside the country, but some restrictions are imposed by certain states // differences in risk between its 27 states) Economic environment The worlds sixth largest economy (GDP $2. 089) Poor GDP growth of 3. % in 2011,(was gamey in 2010 but dicreased due to measures to decrease inflation) the economy is expect to grow strongly. inflation 5% expanding its presence in world markets. ($256 zillion (2011 est. ) 24th worldly) high interest rates make it an attractive finish for foreign investors. explain Imports $226,2 billion (2011 est. ) 23rd world cost to present moment/per container1. 730 large and well-developed agricultural, mining, manufacturing, and service sectors, capital inflows over the past some(prenominal) eld have contributed to the appreciation of the currency, hurting the competitiveness of Brazilian manufacturing and leading the govern (exchange rates 1,6728 (2011 est. 2(2009) Stock of direct foreign investment abroad ? 171,7 (2011 est. ) foreign direct investment unflows31 still has a relatively high debt burden Several Brazilian companies ranking of the worlds largest co mpanies. unemployment (6,7%) high rate o job creation South Americas leading economic power and a regional leader, one of the first in the champaign to begin an economic recovery. Brazil managed to go from a net importer of food to one of the worlds leading exporters of agricultural products. ease of doing business (ranked 124th) corruption major business constraint (67% of managers believe that) Socio cultural environment worlds fifth largest country by both nation and total area. ( colossal and growing state (191mn in 2010, 1,5% growing, 5th in the world) ) Large % of youth population (51,3% of population is under 30 Urban population 84,3% increase in living standards. From 1980 to 2010, Brazils Human development Index (HDI) increased by 30. 8 percent from 0. 549 to 0. 718. but adult gini index Poverty / inequality (21,4% of population is below poverty variant + Gini index56. 99, equality of distribution of income 0-100 Consumer expenditure per capita is low ($6. 619,8) Consumers rapidly adopting disbursement habits that are more characteristic of consumers in developed countries.According to Credit Suisse searchs Emerging Consumer Survey 2011, Brazilians devote a considerably larger share of income to discretionary using up than consumers in other BRIC countries. Brazilian respondents describe saving a relatively modest 10 percent, and more than fractional (52 percent) were not able to set aside any income for savings. (high inflation questionable environment) favelas or shanty towns stand in striking proximity and frizzy contrast to the citys upscale environs and stunning scenic backdrop. Fortunately, some have seen fit to aid the residents of Brazils favelas. The subscribe of Brazils large population of urban poor has assumption rise to a pattern of innovative social programs. increasing number of consumers attaining middle-class status (more than 32 million the past 7years) while another(prenominal) 20 million have escaped a state of poverty. (reach a low-income market segment of new consumer) Sharing boundary lines with 10 neighbours in Latin America troubled and combative social situation illegal narcotics trafficking / border disputes Urugua-Brazil border 1st country of number of murders by youth 20. 386 teaching method level low 9average education 14 years old) education spending 4,2%of GDP Technological environment Energy independent / rich in natural recourses Strengths in agricultural research, know-how and technology. (Much of the credit goes to Embrapa, Brazils exceedingly accomplished, public agricultural research organization. Initiatives on R( that enhance South-South cooperation in several arenas, including science and research collaboration in fields such as nanotechnology, oceanography and Antarctic research. ) Many transportation routes and infrastructures ( ports (atlantic ocean) ) Transportation note the multinational Maritime Bureau reports that the territorial and offshore waters in the Atlantic Ocean remain a significant risk for piracy and arm robbery against ships 2010 saw an 80% increase in attacks over 2009 numerous commercial vessels were attacked and hijacked both at anchor and while underway crews were robbed and stores or cargoes stolen Growing Infrastructure programs due to world cup / olympics (governments development Acceleration Program has pumped $250 billion into infrastructure projects. Recent discovery of huge offshore oil deposits near Rio de Janeiro will further promote future growth, transforming Brazil into one of the worlds biggest oil producers creativity and flair for design and innovation that are ingrained in the Brazilian national character and enhanced by the countrys new financial fitness, telecoms talent and entrepreneurial energy. DATA SOURCES Euromonitor https//www. portal. euromonitor. com IMF website http//www. imf. org/external/country/BRA/index. htm CIA website https//www. cia. gov/library/publications/the-world-factbook /geos/br. html UNCTAD http//unctadstat. unctad. org World Bank World Development Indicators http//data. worldbank. org/data-catalog/world-development-indicators. fall in Nations Development Programs http//www. undp. org/content/undp/en/home. html CEBR website http//www. cebr. com/ Forbes magazine website http//www. forbescustom. com/index. html CNN bullion website http//money. cnn. com/