ACADEMY OF ECONOMIC STUDIES BUCHAREST

FACULTY OF BUSINESS ADMINISTRATION

(ENGLISH TEACHING)




Country Sheet:
Brazil






Students:
Mirea Elena Diana
Moisa Laura
Nan Silvia Maria
Nicolae Alina
Group 134


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1.Introduction

Brazil is most famous all over the world for the Amazon rain forests, coffee, the Rio Carnival,
soccer, tourism and beautiful beaches. Rio Carnival and the Amazon rain forest symbolize the
immense natural wealth and rich cultural diversity of the largest economy in Latin America.
We have chosen to write about Brazil in our country sheet because it is a contrasting country,
which in the last years has become a serious economic player. It has the seventh largest economy in
the world yet so many people are living in dire poverty. It has entered a phase of sustainable
expansion, that could explore the countrys vast supply of natural resources. But on the other hand,
poverty is crippling sectors of its society, thus enlarging the gap between its rich and poor. The main
factor contributing to these contrasts is the fact that Brazils economic miracle engine is only
benefitting a fraction of the Brazilian population the urban elite in bigger cities
Brazils disparity in wealth comes from the fact that the large agribusiness sector contributes
to most of its wealth. Consequently, the big corporations and people associated with the big
corporations attract the largest amount of government attention and privileges. Even though Brazil has
one of the most developed economies in Latin America in terms of agricultural and biotechnology
research, the majority of the research, if not all of it, is done in the private sector and directly benefits
the interest of agribusiness. This situation deprives the subsistence family farmers of taking part in the
economic boom, and they continue to persist in their poverty, toiling long hours with low wages and
minimum benefits to show.
It is one of the largest countries in the world, the largest country in South America and the
fifth largest country in the world after Russia, China, Canada and the USA. In this country of
lush, tropical forests coexist with majestic mountains, wild jungle with magnificent beaches, great
rivers with desert plateau, roaring waterfalls, with comfortable and quiet coves. If it one part of the
country there are heavy rains, in the the other one the sun shines. In the big cities there are major
Western corporations and, in the Amazon area, Indian are still living.


2.History

Brazil has the sixth largest economy by nominal GDP in the world and seventh largest
by purchasing power parity. It is the largest country in South America and covers nearly half
of the South American continent. The Brazilian economy is characterized by moderately free
markets and an inward-oriented economy.
Due to the Amazon Rainforest is a popular location for tourism and it is also rich in
natural resources. In the future decades, Brazil is expected to become one of the five largest
economies in the world. Today, the country is one of the fastest-growing major economies in
the world.
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After the end of the Brazilian Empire in 1889, it was determined that the country
would have a new capital and shortly thereafter, the site of present-day Brasilia was chosen in
an effort to promote development there. Growth did not occur until 1956 and Brasilia did not
officially replace Rio de Janeiro as Brazils capital until 1960
The state of Sao Paulo is responsible for about half of Brazil's Gross Domestic Product
as well as about two-thirds of it manufacturing. While only about five percent of the land is
cultivated, Brazil leads the world in coffee production (about a third of the global total).
Brazil also produces a quarter of the world citrus, has more than one-tenth of the cattle
supply, and produces one-fifth of the iron ore. Most of Brazil's sugar cane production (12% of
the world total) is used to create gasohol which powers a portion of Brazilian automobiles.
The key industry of the country is automobile production.
The politics of Brazil take place in a framework of a federal presidential representative
democratic republic, where by the President is both head of state and head of government, and
of a multi-party system. The political and administrative organization of Brazil comprises the
federal government, the states, the federal district and the municipalities.

3.Government

Brazil is a federal presidential constitutional republic, based on representative
democracy. The federal government has three independent branches: executive, legislative
and judicial. Executive power is exercised by the executive branch, headed by the President,
advised by a Cabinet. The President is both the head of the state and the head of the
government. Legislative power is vested upon the National Congress, a two-chamber
legislature comprising the Federal Senate and the Chamber of Deputies. Judicial power is
exercised by the judiciary, consisting of the Supreme Federal Court, the Superior Court of
Justice and other Superior Courts, the National Justice Council and the Regional Federal
Courts.
4. Geography

Situated on the east-central cost of the continent, Brazil is the largest country in South America.
On the north, Brazil is bordered by Venezuela, Guyana, Suriname and the French overseas region of
French Guiana, on the northwest by Colombia, on the west by Bolivia and Peru, on the southwest by
Argentina and Paraguay and on the south by Uruguay.
Brazil is known as the fifth largest country both by geographic area and by population.
From the geographic point of view, Brazil is composed from hills, mountains, plains, highlands and
scrublands.
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Brazil is the only country in the world that lies on the equator while having contiguous territory ouside
the tropics.
Most of the country has a tropical climate but also we can find others climatic subtypes such
equatorial, semiarid, highland tropical, temperate and subtropical.
It includes the Amazon rainforest, the Amazon River(the world's second-longest river and the largest
in terms of volume of water), Bananal Island, Maraj Island and Pantantal which is one of the worlds
largest tropical wetland areas.
The official language of Brazil is Portuguese, language that is used by almost all the population.
5.Religion in Brazil

Brazil religion compared to other countries in Latin America is known for its diversity.
Religion forms a very important part of the identity of any nation and its culture.
Brazilian religions are very diversified. 70% from the total number of the population practice Roman
Catholicism religion, Brazil having also the largest number of Catholics in the world.
It is fallowed by Protestantism(20%),non religion(8%) and other religions(5,2%).

6.Juridical system

The Brazilian legal system is based on Civil Law tradition. The Federal Constitution, in force
since October 5
th
, 1988, is the supreme rule of the country and is the characterized by its rigid written
form. The Constitution organizes the country as a Federative Republic, formed by the indissoluble
union of the states and municipalities and of the Federal District. The 26 federate states have powers to
adopt their own Constitutions and laws; their autonomy, however, is limited by the principles
established in the Federal Constitution.
Municipalities also enjoy restricted autonomy as their legislation must follow the dictates of
the Constitution of the state to which they belong, and consequently to those of the Federal
Constitution itself. As for the Federal District, it blends functions of federate states and of
municipalities, and its equivalent to a constitution, named Organic Law, must also obey the terms of
the Federal Constitution.
The powers of the Union, as defined within the Constitution, are the Executive, the Legislative
and the Judiciary, which are independent and harmonious amongst themselves. The head of the
Executive is the President of the Republic, which is both the Chief of State and the Head of
Government and is directly elected by the citizens. The Legislative, embedded in the form of National
Congress and consists of two houses: The Chamber of Deputies (lower house) and the Federal Senate
(upper house), both constituted by representatives who are elected by the citizens. The Judicial powers
are vested upon the Federal Supreme Court, the Superior Court of Justice, the Regional Federal Courts
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and Federal Judges. There are also specialized courts to deal with electoral, labor and military
disputes.
The Judiciary is organized into federal and state branches. Municipalities do not have their
own justice systems, and must, therefore, resort to state or federal justice systems, depending on the
nature of the case. The judicial system consists of several courts. The apex is the Federal Supreme
Court and is the guardian of the Constitution. Among other duties, it has exclusive jurisdiction to: (i)
declare federal or state laws unconstitutional; (ii) order extradition requests from foreign States; and
(iii) rule over cases decided in sole instance courts, where the challenged decision may violate the
Constitution.
State-level justice in Brazil consists of state courts and judges. The states of Brazil organize
their own judicial systems, with court jurisdiction defined in each state constitution, observing that
their legal scope is limited by those that do not concern the federal judicial ordainment.
Business law is set out in many different statutes. However, two of them merit special
mention: the Civil Code Introductory Law (Lei de Introduo ao Cdigo Civil or LICC) and the
Brazilian Civil Code of 2002 (the Brazilian Civil Code or the Civil Code).
LICC establishes general rules of legal interpretation, law and private international law. The
Civil Code sets out most rules on legal capacity, private contracts, business entities, statutes of
limitations, torts and family law. International treaties executed by Brazil and ratified by National
Congress have the status of law in Brazil. Some of those treaties have a direct impact on Brazilian
business law, such as the Mercado Comum do Sul (MERCOSUL) treaty.
A foreign company willing to do business in Brazil might either form a branch company or
incorporate a company to carry out its business. Because the formation by a foreign company of a
branch in Brazil requires authorization granted by a Presidential Decree, the majority of foreign
companies set up businesses in Brazil using subsidiaries or affiliated companies. In addition,
compared to creating a subsidiary, establishing a branch in Brazil presents certain adverse tax impacts
and other liabilities.
Corporate entities existing in Brazil are basically regulated by the Civil Code and by Law no.
6,404 of December 15, 1976 (the Corporation Law). There are several types of corporate entities
contemplated by such laws and the most widely used in Brazil are the limited liability company
(sociedade limitada or limitada) and the joint-stock corporation (sociedade annima or S.A.).
The liability of quotaholders or shareholders both in limited liability companies and joint-
stock corporations is generally restricted to the amount that they paid for their quotas or shares. In
cases of fraud or illicit acts, Brazilian courts can pierce the corporate veildisregarding the corporate
entity and holding partners directly liable for the entitys obligations. Courts are more likely to pierce
the corporate veil of limitadas, especially with respect to labor- and tax-related debts.
Individual or corporate foreign partners must be enrolled in the Federal Revenue Office in
Brazil, which reports to the Ministry of Finance. Generally (subject to thin capitalization rules), there
are no minimum corporate capital requirements. Corporate capital may be allocated among the
partners as they find proper.





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7.Culture

The culture of Brazil presents a very diverse nature showing that an ethnic and cultural mixing
occurred in the colonial period involving mostly Native Brazilians, Portuguese and Africans. In the
late 19th and early 20
th
centuries Italian, German, Spanish, Ukrainians, Polish,Arab and Japanese immigrants settled in
Brazil and played an important role in its culture, creating a multicultural and multiethnic society. At
present, Brazil has a population of about 190 million people. Around 55% of the population is white,
38% mulatto, 6% black, and 1% other that Japanese, Amerindian, and Arab.
The European settlers taught the indigenous tribes Catholicism, built churches and established
traditions and customs that originated in this church. Also due to the mass Portuguese settlements
during the 16th, 17th and 18th centuries, this language is the official language of Brazil. There are
small numbers of indigenous people and immigrants who still speak their own tongues, but these are
certainly among the vast minority.
This diverse cultural background has helped boast many celebrations and festivals that have
become known around the world, such as the Brazilian Carnival and the Bumba Meu Boi. The
colourful culture creates an environment that makes Brazil a popular destination for many tourists
each year.
Brazilians, as a nation, focus much importance on the family structure and the values that are
entrenched within that institution. Families are usually large, and even extended family members are
close with one another, providing much-needed help and support to each other whenever and however
necessary.
Some interesting etiquettes and expectations in the Brazilian culture include:
When invited to dinner or an event, do not under-dress. It is considered more appropriate to over-
dress than to appear too casual in appearance.
Always bring the hostess a small gift of gratitude (such as a glass of wine or some fresh flowers).
Avoid giving anyone a gift that is black or purple, as these are perceived as mourning colours.
Always arrive early for events and dinners.
In business, Brazilians tend to deal with individuals, not companies. Therefore, you will need to
establish a trusting relationship with them if you wish to gain their business. It is important that you do
not try to rush them into making decisions or forming relationships.
Manicures for women and formal dress for both sexes are expected within corporate situations.



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8.Economy

Today, Brazil economy is on the rise. Brazil has abundant natural resources, thus it has
become the most powerful country in South America in economic terms and thus is leading the other
countries of South America. It is the world's seventh largest economy at market exchange rates and
the seventh largest in purchasing power parity (PPP), according to the International Monetary
Fund and the World Bank. Brazil has a mixed economy with abundant natural resources. The
Brazilian economy has been predicted to become one of the five largest in the world in the decades to
come, the GDP per capita following and growing,

provided that large investments in productivity gains
are made to substitute the GDP growth of the last decade that is attributable to the increase in the
number of people working.


It has a population of over 201 million people, out of which urban population was last reported
at over 168 million in 2010, according to a World Bank report published in 2012 and Rural population
was over 30 million in the same year. Urban population refers to people living in urban areas as
defined by national statistical offices and rural population refers to people living in rural areas.

Currency
The unit of money or Brazil currency South America is Real (BRL). It was implemented on July
1, 1994 and consists of Bills ranging from- R$1, R$2, R$5, R$10, R$20, R$50 and R$100. Coins are
also available in varied colours and sizes with value ranging from 1 cent, 5 cents, 10 cents, 25 cents,
50 cents and also 1 Real. Previously the Bills had images of Historical characters, but at present the
images of Brazilian animals are illustrated on the bills. The female character at one side of the bill
represents Brazil as a Republic.

a) Components of the economy
The service sector is the largest component of GDP at 67.0 percent, followed by the industrial
sector at 27.5 percent. Agriculture represents 5.5 percent of GDP (2011). Brazilian labour force is
estimated at 100.77 million of which 10 percent is occupied in agriculture, 19 percent in the industry
sector and 71 percent in the service sector.
Agriculture in Brazil is well diversified, and the country is the largest producer of sugarcane,
coffee, tropical fruits, frozen concentrated orange juice (FCOJ. Agriculture contributes to 6.1 percent
of the country's total GDP in 2010, and employs 20 percent of its total labour force.
Brazil has the largest cattle herd in the world, with 207.5 millions of cattle in 2009, over 50
percent larger than that of the US. The increase in production of the country's livestock and crops leads
to the rise of deforestation and land clearing in the country. These activities results in producing 75
percent of Brazil's total emissions of greenhouse gases, and make the country one of the top world
greenhouse gas(GHG) emitters.
It also has a diverse and well-developed industry, regarded as one of the most advanced
industry in Latin America. It covers the automobile and parts, machinery and equipment, textiles,
cement, computers, aircrafts, steel and petrochemicals, and consumer durables. The industry
contributes 26.4 percent of the nation's total GDP, and employs 14 percent of its total labour force.
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Brazil is also one of the world's leading producers of hydroelectric power, and hydropower
accounts for 69 percent of the country's total electricity generation. Nuclear energy contributes to 4
percent of Brazil's electricity. The country currently has 2 nuclear power plant, Angra I and Angra II.
Plans and work is on the way for the third plant, Angra III.
It has an expanding services industry and it contributes about 67.5 percent of the nation's total
GDP, and employs about 66 percent of the total labour force. Brazil has a well-developed services
sector, with major industries including telecommunications, banking, energy, commerce and
computing sectors.

Brazil's banking industry is financially strong and attracted huge inflow of foreign investment,
with a strong national currency, and boast one of the highest interest rate in the world. Two of the
largest banks in Brazil are government owned, but US and other foreign banks do have an a significant
share of the financial market.

b) Transport infrastructure
Transport infrastructure in Brazil is characterized by strong regional differences and lack of
development of the national rail network.

Brazil's fast growing economy, and especially the growth in
exports, will place increasing demands on the transport networks
Roads
Roads remain the primary means of transport in and around Brazil both for passengers and for
freight purposes. The Brazilian highway system is one of the largest in the world, but is known for
being inadequate, not catering to the ever-increasing needs of the cars. As a result, some of the roads
are undergoing a major revamp and expansion, just in time for the 2014 FIFA World Cup and the
2016 Olympic Games. Part of the motivation behind this expansion and development has also been to
link the industrial sector with the less developed parts of the country by road. It is estimated that there
are 1.2 billion people travelling the highways of Brazil every year.
Rail
Using railways as a means of transport began in the 1800s in Brazil. In 1957, the various different
railways were nationalised under Rede Ferroviria Federal, Sociedade Annima (RFFSA). However,
this organisation broke up between 1999 and 2007 so that the various rail services are now under the
control of a number of different public and private operators. There are four rail gauges in the country.
These are the 1) broad gauge, 2) narrow gauge 3) dual gauge and 4) standard gauge.
Total actual network: 29,295 km
Broad gauge: 4,932 km 1,600 mm (5 ft 3 in) gauge (939 km electrified)
Narrow gauge: 23,773 km 1,000 mm (3 ft 3
3

8
in) gauge (581 km electrified)
Dual gauge: 396 km 1000 mm and 1600 mm gauges (three rails)
Standard gauge: 194 km 1,435 mm (4 ft 8
1

2
in) gauge: (2006)
Estrada de Ferro do Amap in the middle of the Amazon Rainforest also used
standard gauge.
A 12 km section of the former 2 ft 6 in (762 mm) gauge Estrada de Ferro Oeste
de Minas is retained as a heritage railway.
Air
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Brazils air transport infrastructure is relatively well developed. In fact, there are about 300
airports in the country, of which around 50 are major commercial ports. In turn, 21 of these are
international airports. There are more than 115 million passengers flying into, out of and around Brazil
every year.

Power
Most of Brazils power (around 90%, in fact) is generated by hydroelectric plants. These plants
produce power by harnessing the gravitational force of flowing or falling water. Other power sources
are fossil fuels and nuclear energy. Only companies owned by the state are permitted to produce
power, and have been fairly reliable in doing so to date.

Telecommunications
Telecommunication services in Brazil are well developed and efficient. This industry includes
landlines as well as mobile services, television broadcasting, radio broadcasting, and computer /
internet access. Today, more than 45% of the Brazilian population has access to the internet. The
telecommunications infrastructure is fairly modern, particularly in central-south Brazil. However, the
north and north-west are drastically less developed.
Waterways
With all of the rivers in Brazil, there are approximately 50 000 kilometres of navigable waterways
in this country. There are about 15 seaports or harbours along the coast, and there are two on the
mammoth Amazon River. Corumb is an international waterway on the Paraguay River.
National economic indicators in 2013
GDP Growth (Constant Prices, National Currency) 3.017 %
GDP (Current Prices, US Dollars) US$ 2,456.66 Billion
GDP Per Capita (Current Prices, US Dollars) US$ 12,290.64
Inflation (End of Year Change %) 5.503 %
Import Volume of All Items Including Goods and Services (Percent Change) 8.724 %
Export Volume of All Items Including Goods and Services (Percent Change) 5.017 %
Unemployment Rate (% of Labour Force) 6 %
Gross National Savings (% of GDP) 16.152 %
The minimum wage set for the year of 2013 is BRL 8,814.00 or BRL 678.00 per month plus an
additional 13th salary in second half of December
Tourism
Tourism is becoming a major industry in Brazil, particularly as the 2014 FIFA World Cup,to
which it is host, draws ever closer. Rio de Janeiro and So Paulo are two of the most visited
destinations in the country, offering visitors (whether in the country on business or pleasure) a
fabulous peek into the complex heritage and natural spectacle of Brazil. Tourism rates sky-rocketed
from the year 2000 onwards as awareness of its multifaceted appeal rose. There was a period between
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2006 and 2008 that economic issues hindered the tourism industry somewhat. However, Brazil is the
most visited country in the continent of South America today.
While the major draw-cards to Brazil continue to be its unique cultural integrity coupled with its
absolute beauty, it is also a viable business-related destination. Services, industry and agriculture make
up the vast majority of its annual GDP, and ensure that corporate personalities from around the world
visit the manufacturing plants, corporate giants, and so on that have their headquarters based in Brazil.

c) Commercial agreements
Part of the WTO(World Trade Organization).Among the various functions of the WTO, these
are regarded by analysts as the most important:
It oversees the implementation, administration and operation of the covered agreements.
It provides a forum for negotiations and for settling disputes
Part of MERCOSUR, which is an economic and political
agreement among Argentina, Brazil, Paraguay, Uruguay, Venezuela and Bolivia Its purpose is to
promote free trade and the fluid movement of goods, people, and currency.














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9.Conclusion-SWOT analysis
Strengths
Agriculture: is one of the number of agriculture products exporter in the world.
High population:
Young population: the median age in Brazil is 29.6, compared to 37.1 in USA and 41.2 in
Canada. More potential for education, a larger market for consumer goods, and a larger tax
base for the country
Rising middle class: the core consumers of any population, the middle class, are rising in
number as of 2011 there were more cell phones registered than the population of the country
Tourism: Tourism is becoming a major industry in Brazil, particularly as the 2014 FIFA
World Cup.
Natural resources: Gold, Timber, Iron Ore, Uranium, Petroleum, Copper, Manganese.
Weaknesses
Language: Portuguese is not a mature trading language, and English as a second language is
not as good developed yet. Also all surroundings member speak Spanish.
Poverty: Poverty is still a big issue in Brazil - Definitions of poverty vary considerably among
nations. For example, rich nations generally employ more generous standards of poverty than
poor nations.
Crime infrastructure: Brazil still has a high crime rate and gang violence in certain areas.
Income inequality
Corruption
Opportunities
Independent on Oil: one of the few countries in the world that are self-sufficient in oil, which
plays a very crucial role in global economy.
Ethanol: It produces more ethanol than the combined production of Asia and Europe.
Foreign Direct Investment: The purchase of Brazilian land has become an increasingly
popular investment strategy.
Peak Oil Supply: he peak of increasing oil supply, according to the International Energy
Agency (IEA), will happen some time around the 2020 to 2030. This could increase the
demand for oil extracting companies and peripheral technology that can find oil in more
difficult locations.

Agriculture

Threats
Export driven economy : Exports helped to expand Brazil's economy, but they can rapidly
change direction and slow Brazil's economy.
Currency: The Brazilian currency REAL is getting stronger, which could slow down there
export driven economy
High interest rates
Terrorism
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Global warming: global warming is considered to be the most acute threat to Brazils interests
. Brazil needs to actively engage in tackling climate change, mostly by reducing the rate of
destruction of the Amazon forest, the largest carbon sink in the world, 60 percent of which is
on Brazilian territory.
Weak neighbouring countries

























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References:
http://www.theguardian.com/news/2008/mar/14/rorycarroll.insidebrazil
http://www.tradingeconomics.com/brazil/rural-population-wb-data.html
http://data.worldbank.org/indicator/SP.RUR.TOTL
http://www.economywatch.com/world_economy/brazil/structure-of-economy.html
http://www.economywatch.com/economic-statistics/country/Brazil/
http://www.mapsofworld.com/brazil/brazil-currency.html
http://www.sice.oas.org/ctyindex/BRZ/BRZAgreements_e.asp
http://en.wikipedia.org/wiki/Brazil
http://www.loc.gov/law/help/brazil-legal.php