Doing Business in Brazil

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Establishing a Corn Farming Industry in Brazil

Carrie M. Perkins

Jones International University

BC607: Leading from a Global Perspective

Dr. Miro Smriga

April 30, 2011

Abstract

The “new” Brazil has emerged in the forefront as a world global leader. The country has seen significant improvement in its economy, social, political and cultural environment. The purpose of this paper is to explore or analyze the political and economical factors that have contributed to Brazil becoming the largest economy in the world.

Executive Summary

This report gives a brief summary of establishing an industry of corn farming in Brazil. Brazil has the tenth largest economy in the world, and has emerged as one of the leading nation in which to establish a business. Economic indicators that contributed to the country’s growth includes: Brazil’s population of about 203 million, (2010 est.), with a population growth rate of 1.134% (2011 est.); Brazil’s GDP is $2.194 trillion (2010 est.); GDP (official exchange rate) $2.024 trillion, (2010 est.); GDP (real growth rate 7.5% (2010) estimate; GDP (per capita (PPP): $10,900 (2010 est.); GDI composition by sector: Agriculture: 6.1%, industry: 26.4%, Services: 66%; Labor force by occupation: agriculture: 20%, industry: 14%, services: 66%; unemployment rate: 7% (2010 est.). (Central Intelligence Agency [CIA], 2011). Brazil is now recognized as a serious business opportunity.

American farmers are looking to expand their operations by investing in farms in Brazil. Some have bought property and set up farms there, many more are investing in American-owned operations. There are now more than a dozen American-owned farms operating in western Bahia and more in other parts of Brazil. Many are corporate farms, but over the last decade Brazil has also become a destination for a small, but growing number of expatriate Americans who want in on the...