Brazil International Business

8/10/2019 Brazil International Business

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BRAZIL


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BRAZILS CULTURE

Jasser Garca


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BRAZILIAN CULTUREIs very diverse. Brazil was a colony of Portugalfor over 3 centuries. Large numbers of settlersfrom Portugal arrived during this period (nearly

1 million ) and brought their culture to thecolony. The native inhabitants of Brazil had astrong contact with the colonists. Many wereexterminated, others mixed with the

Portuguese. For that reason, Brazil also holdsAmerindian influences in its culture, mainly inits food and language (Brazilian Portuguesehas hundreds of words of Indian origin, mainly

from the Tupi-Guarani)


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Meeting Etiquette

Men shake hands when greeting one another,while maintaining steady eye contact.

Women generally kiss each other, starting withthe left and alternating cheeks.

Hugging and backslapping are common greetingsamong Brazilian friends.

If a woman wishes to shake hands with a man,she should extend her hand first.


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Gift Giving Etiquette

If invited to a Brazilian's house, bring the hostessflowers or a small gift.

Orchids are considered a very nice gift, but avoid

purple ones.

Avoid giving anything purple or black as these aremourning colours.

Handkerchiefs are also associated with funerals, sothey do not make good gifts.

Gifts are opened when received.


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Dining Etiquette

If you are invited to a Brazilian's house:

Arrive at least 30 minutes late if the invitation is fordinner.

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

Brazilians dress with a flair and judge others on theirappearance. Casual dress is more formal than in

many other countries. Always dress elegantly and erron the side of over-dressing rather than under-dressing.

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

next day are always appreciated.


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Brazil

Social - Cultural Diversity

Brazil is a multinational country with anextraordinary ethnic / linguistic diversityparticularly in the Atlantic Rainforest region

from where the colonization started. Accordingto the Brazilian Institute for Geography andStatistics (IBGE), more than 10 millionimmigrants came to Brazil, until today

(including 4 million african slaves).
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Language

The official language of Brazil is Portuguese,which is spoken by the overwhelming majorityof the population (more than 99%). Minority

Languages include indigenous languages, andlanguages of more recent European and Asianimmigrants. Approximately 210 languages arespoken or signed by the population, of which

80 are indigenous to the area.


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Within Brazil, there are no dialects ofPortuguese, but only moderate regional

variation in accent, vocabulary, and use ofpersonal nouns, pronouns, and verbconjugations. Variations tend to diminish as aresult of mass media, especially national

television networks that are viewed by themajority of Brazilians.


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Religion

Religion in Brazil is remarkable both in its high adherencelevel compared to other Latin American countries as well asits diversity.

In 1889, when the Brazilian Constitution was set forth, Brazilceased to have an official religion. The Constitutionguarantees absolute freedom of religion. Over seventypercent (70%) of the population declared themselves RomanCatholic in the last census (2000).However, there are manyother religious denominations in Brazil. Some of thesechurches are the: Protestant, Pentecostal, Episcopal,Methodist, Lutheran, and Baptist. There are over a millionand a half Spiritists or Kardescists who follow the doctrines ofAllan Kardec. There are followers of The Church of JesusChrist of Latter-day Saints, small minorities of Jews, Muslims,Buddhists and numerous followers of Candomble andUmbanda.


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BRAZILS POLITICALENVIRONMENT

Carla Rodrguez


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Political Environment

Individualism Versus Collectivism

Brazils IDV rank - 38, indicates that Brazil is avery 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


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Political Ideology

One of the largestDemocracies in theworld

Politics of Brazil takesplace in a framework ofa Federative Republic

The President of Brazil

is both head of stateand head ofgovernment

There are two legislative

houses: an 81 member
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Current Gobernment

Ruling Party - The BrazilianSocial Democracy Party(Partido da Social DemocraciaBrasileira, PSDB) Centre-left Political Party

Leader of the Party LuizIgnacio da Silva, alsopresident of the country

since 2002. Government based on the

organized working class butfundamentally accepts the

capitalist system .


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Political Risk

The increasing divergence between US andBrazilian foreign policy creates high geopoliticalrisk.

Political risk is low in the short-term. High social risk is the result of continued

deterioration in social conditions contrary to theexpectations of the electorate.

Brazil is entering a presidential election year -potential shift of power in the global economy canresult in heightened volatility in any country'scurrency and markets.


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Foreign Policy

Brazil's foreign policy is designed to helpprotect the countrys: national interests,

national security, ideological goals,

and economic prosperity.

Brazilian foreign policy has recently aimed to

strengthen ties with other South Americancountries and act at times as a countervailingforce to U.S. political and economic influencein Latin America.


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U.S.A.-Brazil

The increasingdivergence between USand Brazilian foreignpolicy creates highgeopolitical risk.

This will lead toincreasing

confrontations betweenthe US and Brazil andthe continued decline offoreign direct

investment.


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Negotiate deals that benefit or are concernedwith 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 itwould single out a member of the group

Making Business in

Brazil:


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BRAZILS LEGALENVIRONMENT

Daniella Villanueva


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Federal Republicthe26 states, municipalitiesand the Federal District.

The states have the

power to adopt their ownConstitutions and laws.

Civil law country basedon Roman civil code.


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The Brazilian legal system is based on codes

and legislation enacted by the appropriatelegislative power at the federal, state andmunicipal levels. The basic law of the countryis 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, stateand municipal administrations.


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LEGAL ENVIRONMENTFACING BUSINESS


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Foreign investment has been welcome in Brazilfor a long time and constitutes an importantsource of capital for development of theBrazilian economy.

The stability of the Brazilian foreign investmentlegislation is a clear indication of the countrys

desire to attract overseas investors.


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Foreign investment is not subject to governmentapprovals or authorizations.

No requirements regarding minimum investment

or local participation in capital, except in verylimited cases:

Such as in financial institutions

insurance companies

other entities subject to the regulating authority of theCentral Bank of Brazil

Foreign participation, however, is limited orforbidden in few areas of activities.


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Restrictions on Foreign

Ownership of Companies

Foreign capital may be freely invested in Brazil, and itenjoys the same treatment granted to Braziliancapital, with the few exceptions: Property of Rural Land: purchase of rural land by non-

residents 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 totalcapital of the company

Banking and Insurance: opening of new foreign banks and

insurance companies, or of new branches by foreign banksalready operating in Brazil is frozen until a new lawregulating financial activities is enacted (such prohibitionmay be circumvented by a presidential decree authorizingthe investment).


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Arbitration

In 2001 the Brazilian Supreme Court upheldthe constitutionality of the Brazilian statutevalidating contractual arbitration provisions.

Arbitration is only permitted with regard tonegotiable rights, which comprise most ofcommercial transactions.

The foreign arbitration awards has to beratified by the Brazilian Supreme Court.


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Multilateral treaties

Mercosur

Promote free trade and open up borders acrossSouth America.

Mercosur will greatly influence companies andpotential entrants doing business in SouthAmerica.


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BRAZILS

ECONOMICALENVIRONMENT

Alejandro Bobadilla


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Brazil has a modern capitalist economicsystem.

Actually ranked as the highest among allthe South American economies and is in a

good position on the world economy. Their economy is based on agriculture,

mining, manufacturing and service sector.


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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 UnitedStates, European Union and Argentina.


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GDP

$1613 million dollars (2.6% of the world) $10,200 Per Capita


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Inflation

Inflation Rate 5.26% (April 2010)


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Unemployment

Unemployment Rate 7.30% (April 2010)


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Conclusion

Brazil is the best option in South America to dobusiness and to invest your money.

Documents

Brazil International Business