Contents

Interesting Facts Demographics Mineral Resources History Emerging Sectors How to do Business Bibliography

Interesting Facts About Brazil

The 5th largest country in the world 1/3rd of world's potable water and rainforest Has the 2nd highest number of airports in the world. Brazil is the longest country in the world, and spans approximately 2800 miles Every Brazilian city has at least one soccer stadium! Brazil, second-largest consumer of cocaine in the world Brazil is 100% energy independent

Culture
99% people speak Portuguese Carnivals Annual Festival (>6 Days) Cuisine - Brigadeiros , Feijoda Music Samba , Bossa , Nova Sports

Demographics
39% 6% 1% 54%

13% EUROPEAN
87% Urban Rural

MIXED EUROPEAN AFRICAN AFRICAN

200 100 14.6 176.1 26.20

Age
Age (years) 67.00

0
Literates Illiterates Literacy (Million)

6.70 0-14 Years 15-64 years >65 years

Mineral Resources
Brazil 84.77 92 ROW 80 87.59 87.6 90

15.23

8 12.4

20 10

12.41

Populism and development (19301964)

Military dictatorship (196485) Redemocratization to present (1985Present)

Colonial Brazil & The Old Republic (15001930)

General Pedro Cabral GetAlvares lio Vargas Pedro IIFonseca th th 26 Feb 15 1822-1827 April 22nd 1500 Nov 1891 Nov 15th 1889

Import Substitution

Populism and development (19301964)

Military dictatorship (196485) Redemocratization to present (1985Present)

Colonial Brazil & The Old Republic (15001930)

Second Republic
The overvalued foreign-exchange rate, established in 1945, remained fixed until 1953 Foreign exchange controls to protect selected segments of domestic industry In 1953 a more flexible, multiple-exchange-rate system was introduced. As a result Brazilian economy grew . Annual GDP > 7% Problems Increase in Balance Of Payments

Populism and development (19301964)

Military dictatorship (196485) Redemocratization to present (1985Present)

Colonial Brazil & The Old Republic (15001930)

Military Dictatorship
President Castello Branco Authoritartian regime Technocrats and foreign investors Economic Growth Economic growth took off at 11.3% per year State participation - 60% to 75% Capital formation - 15.2% of GDP to 20.3% Student Opposition movement and labour union opposition Guerrillas

Military Dictatorship
Oil shock Borrowings from abroad Inflation soared high High interest rates in US GNP fell by 2% in 1981 5% GDP for debt service Depreciated exchange rate lead to expensive debt Stress on exports and international relations Largest external debt in world(70% of foreign debt)

Populism and development (19301964)

Military dictatorship (196485) Redemocratization to present (1985Present)

Colonial Brazil & The Old Republic (15001930)

Redemoacratization
Jos Sarney New constitution in 1988 Political transition lead to higher inflation &stagnancy Cruzado Plan 3 currency units: Cruzeiro, Cruzado & Cruzado Novo. Cancellation of interantional debt in 1988 Ferenando Collor de Mello(1989-1992): Collor plan I Collor plan II Change of currency from Cruzado Novo to Cruzeiro Bankruptcy and unemployment

 Fernando Henrique Cardoso(1995-2002): REAL PLAN

Action
Obstacles removal to foreign investment Lowered tariff barriers Exchange market deregulation and liberalization SOEs Privatization Fiscal and monetary discipline in public sector Unidade Real de Valor (URV) (1 URV = 1 US$) Real was allowed to float within a band set. Reduce Expenditure by restructuring the government.

Effect
Inflation dropped from 2600% to 50%. GDP grew at the rate of 4% to 6%. Purchasing power increased.

More foreign investments.

Luiz Incio Lula da Silva(2003-2010)

President Lula chose to maintain his predecessor policies. Popular among lower class
Reforms Investment in Infrastructure Tax Relief policy Expansion of Political Influence (G 20) Beneficio De Prestacao Continuada (Benefit For Continuous Service) Bolsa Familia Consequences Foreign Trade increased Surplus Reached $29 Billion Net Creditor for First Time after Decades More foreign investments.

Dilma Rousseff (01/01/2011 present)

President Rousseff is the 36th President of Brazil. 1st woman President of the country 3rd most powerful woman in the world
Reforms Investment in Infrastructure Poverty reduction initiatives Reduction in Tax Imports Massive capital inflows FX intervention Privatization Science without borders Consequences GDP grew 2.7% in 2011 Expected to grow 2.5 % in 2012 4.1% in 2013 Increase import of goods Foreign exchange reserves grew to around US$ 375bn Unemployment rate reduced to an envious 5.8%
Brave Enough To Carry Brazil Forward

What Is Holding Brazil Back??

Policy Failures
Excessive government expenses Continued dependence on commodity exports Corruption

Cumbersome regulatory and legal framework

Custo Brazil 152 days to register a business Tax systems needs to be simplified & property rights are poorly defined

Excessive Inequality
Top 10% of population = 43% consumption Unequal education attainment Unequal land distribution Political disparity

External Factors
US and Chinese Trade Policies China a friend and a foe

BRAZILS RANKING ON BUSINESS TOPICS

Emerging Sectors in Brazil

Infrastructure Tourism Healthcare Real Estate IT

Business Etiquettes
Make appointments at least two weeks in advance. Never start into business discussions before your host does. Business meetings normally begin with casual 'chatting' first Be prepared to commit long term resources (both in time and money) toward establishing strong relationships in Brazil. This is the key to business success Giving a gift is not required at a first business meeting; instead buy lunch or dinner Three-piece suits carry an "executive" connotation, whereas two-piece suits are associated with office workers. Conservative attire for women in business is very important. Also make sure your nails are manicured The colors of the Brazilian flag are yellow and green. Avoid wearing this combination in any fashion

Bibliography
www.wikipedia.com www.cia.gov www.indexmundi.com World Bank Report The Economist Forbes Magazine KPMG and E&Y Reports Breakout Nations Ruchir Sharma