Business / The Key Political, Economic, Legal And Socio-cultual Factors Affecting Businesses In Brazil And The Economic And Political Thrust For Development

The Key Political, Economic, Legal And Socio-cultual Factors Affecting Businesses In Brazil And The Economic And Political Thrust For Development

Autor:  Nicolas  11 January 2012
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Words: 2760   |   Pages: 12
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INTRODUCTION

Background

This research was completed at the request of SIMA Consultancy Ltd, a consulting company based in Dublin, Ireland, by CAAD International Consultancy Services. The research is an investigation of the Brazilian environment and analysis of the key environmental factors that are influential in conducting business in Brazil.

The research includes:

PART A: A review of the key political, economic, legal and socio-cultural factors relevant to businesses

PART B: An assessment of the general direction and thrust of the political and economic policies being followed in order to develop the country

PART C: An example of two firms, a domestic and multinational, conducting business in the same industry and thriving in their individual capacities.

All of which are essential information for both existing and potential business in Brazil.

Profile of Brazil

Name: Federative Republic of Brazil

Capital: Brasilia

Location: South America

Population: 203million (5th largest country in the world)

Language: Portugese

Status: Emerging global power house

Economy: Diversified market with abundant agricultural, mineral and energy resources

Currency: Real

Politics: Democracy led by President Dilma Rousseff, Head of State and Government. (2011-2015)

PART A

POLITICAL FACTORS

International Relations

As a founding member of the United Nations (UN), World Trade Organisation (WTO), Union of South American Nations (UNASUR) and a party to several international agreements, Brazil has a commendable history as an active key player on the world stage politics. (Foreign and Commonwealth Office, 2011) Its position as a leader within the Latin American region has also aided the country to foster cooperation with the Middle East and Africa. (Foreign and Commonwealth Office, 2011)

This factor is of crucial benefit to the various businesses established within the country, and potential businesses, as it provides them with an extended market separate to the already large domestic market in which they operate.

This means that businesses can benefit from trade agreements made with partner nations, such as the free movement of labour, goods and services agreed within UNASUR, (PricewaterhouseCoopers, 2010) while being associated with a member nation of the BRICS community.

However, this can also pose a threat to businesses within the nation as they will be faced with increased competition due to the inward movement of businesses into the country.

Political Stability

This is an at ...