GBE Assignment Brazil
In the meantime, Dilemma Rousseau – the ruling president -? has to run a naming for her own re-election in October 2014 and manage a growing condensation linked to the organization of these two main events. Nonetheless, according to The Economist, “polls suggest that if the election were held today, Ms Rousseau would come first”, even if she doesn’t have such a wide lead. Despite all these protests, the stability of the country is not threatened. As the graph and the map below show, Brazil remains the safest “BRICK” country and is close to the advanced ones in terms of political stability.
It is really encouraging for all the new companies who want to do business here. Source : www. Inflector. Com, 2013 source : Dolomite, 2012 7 This paragraph is just a short introduction about this increasing economic giant and its economy won’t be subject to further comments since we will expose In detail the issues that Brazil is facing in a more thorough analysis later (see page 26). The trade structure and the trade balance and some other major economic data (such as the nominal GAP per capita, the real GAP growth, etc) will be emphasize in this
Source : Focus Economics, 201 1 Source : Dolomite, 2012 9 10 Brazil is the largest and most populous country in the south of America. Indeed there are more than 200 million of people living inside its border. During these last years we saw an increase of the number of people in the middle class. According to FRRdrice Layout from the CERCI that part of the population represents around 55 %. Moreover, Brazil possesses a young population: 24. 7% of people are less than 15 year old. That is why we can imagine that in the coming years there will be a growth about the consumption in this country.
Nevertheless, we have to keep on mind that a lot of inequalities exist in Brazil articulacy concerning to the wealth. About the salary, the ten wealthiest percent of the population earn 42% of the total income in Brazil, whereas the ten poorest percent earn only 1. 2% of the total income. But at the moment differences concerning the incomes are reducing. Due to a fast arbitration and a quick population growth, there is a housing deficit in Brazil. Indeed specialists think that 7 million homes miss in the country.
That is the explanation about the mass existence of “velars”: as an example there are more than 150 000 people living in Rocking (vela located in ROI De Jeanne). About the social climate, from March 2013, there have been many demonstrations in the streets that become a movement with a bigger claim. People criticize the government policy, particularly about the organization of the Football World Cup in 2014. The population wants the government, instead of spending money in the football Cup, to invest in social, health or education program.
Concerning the education, we can notice that a lot of children stop class in the age Of 10 to 12 years. Effectively the Brazilian educational system is not that optimized. According to this chart, Brazil has a need to improve its education attainment rates in the tertiary sector, which will be a major challenge for the development of the country. 12 According to the CNR, Brazil has the better potential about the R&D development. In 2010, 750,000 jobs were created in the sector of Innovation and Technology. A lot of firms such as Motorola, Samsung, Monika or IBM have research and innovating centers in Brazil.
Also Brazil operates in the aeronautic building sector with its firm Embrace. It produces commercial, executive, and also military aircraft. This is the third aeronautic firm in the world. That fact shows Brazil can be competitive in industries arising from technology. High-technology exports are products with high R&D intensity, such as in aerospace, computers, pharmaceuticals, scientific instruments, and electrical machinery. In the first graph we can notice that from 2004 to 2011 , Brazil increased its exports of high-technological product (in LESS).
It is the 26th exporter of histrionically product in the world. Source : World Bank data, 2012 As we see in the second chart, the part of the high-technological product in comparison with all exported product had been decreasing softly, like the world average. However we must note that Brazil proportion Of HTH exported reduce is lower than the world average. 14 – The leading environmental issue for Brazil is the deforestation. According to the UNEVEN (United Nations Environment Programmer), 17% of the Amazon rainforest’s have been razed between 2000 and 2005.
Specialists assured that if nothing changed, half Of the main rainforest’s Of the world will be destroyed in 2030. This phenomenon is due to an agricultural economy that always needs more lands. Indeed, Brazil is the first producer of sugarcane, the second producer of beef and the third producer of soybean (see maps below). After the Kyoto Protocol, Brazil had to reduce its emission caused by forestation since it was one of the largest emitters of greenhouse gases. In 2012 at the “ROI +20 Summit”, the aim was an 80% reduction of the deforestation rate which should enable a 36% fall of greenhouse gases emission in 2020.
Thanks to Isabella Etcetera (Minister of Environment and fervent green activist), Brazil registered a whopping drop of its deforestation rate (84% in eight years). But nowadays, powerful agricultural lobbies endanger these goals. – The leadership of Brazil in befoul (Brazil is the first exporter of ethanol) is on the one hand a good thing for the environment, but on the there hand its increasing need of sugarcane fields (ethanol is produced from sugarcane) is alarming and could interrupt the efforts to stop deforestation and therefore increase the greenhouse gases emissions. 6 – Deposit its important oil reserves (see the map below), sustainable resources are very important for Brazil, and the government encourages local and foreign companies to initiate CEO-friendly combustion technique and renewable energies. Almost 80% of Brazier’s domestic power is hydrophone. 17 The two main types of companies in Brazil are : the Corporation (“Associated An¶anima” S. A) which is similar to a US stock corporation. And the Limited Liability Quota Company (“Limited” Ltd).
Corporate entities are separated from legal personality, and it is impossible for creditors to seize the partners assets if the company is suffocating under the weight Of debts. In order to start a business, all foreign and Brazilian companies will have to deal with a lot of procedures. According to the World Bank, it takes approximately 108 days to set up a business. We will enumerate some of them shortly here: ; Business Permit: a document which any relevant municipality will procure to ensure that each company meets all the legal requirements.