Brazil Market Entry

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Brazil: Market Entry Information

COMPUSTREAM CONSULTORIA LTDA.

Developing Strategic Partnerships in Brazil

– Copyright 2000-2009 CompuStream Consultoria Ltda.

WWW.COMPUSTREAM.COM.BR

I.

Doing Business in Brazil

Brazil has recently been occupying a strong role in the international scenario, reactivating commercial agreements and relations with old partners, and reopening relevant issues for discussion on the development of trade goods and services throughout the international community. Although Brazil has always had a “natural vocation” for international partnerships and relations, it can be said that international trade has only recently received greater attention from the Brazilian government as a result of the need to generate resources internally, aiming at a development that is able to promote social integration. Future investors seeking to take advantage of the opportunities Brazil has to offer are advised to approach with care. Rapid industrial, urban and commercial development has created a labyrinthine legal and tax system witch requires sound professional advice. Almost any market entry approach is open to US companies seeking to tap into the huge Brazilian market direct sales (import), agents, distributors, partners, joint ventures, licensing or start-ups. The appropriate form depends largely on the product or service, as well as the international experience of the US Company and its sales goals. One important thing, however, is to find and use competent experts on Brazil. In other words, don't go in alone. All standard international forms of business relationships are recognized in Brazil. It is difficult to freely state which form is most appropriate since it largely depends on the product or service, as well as the maturity of the business and the probable market penetration. Small companies with financial and manpower restraints usually rely on agents or distributors to sell their products. This form of distribution is most favored...