Pest Brazil

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Category: Business and Industry

Date Submitted: 11/23/2012 07:03 AM

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Demographic :

Pop : 196 655 014 

Pop growth : 1,102%

Number of households/household size : 57 324 167 / 3.3

Age distribution : 0-14 years: 26.2% (male 27,219,651/female 26,180,040) 

15-64 years: 67% (male 67,524,642/female 68,809,357) 

65 years and over: 6.7% (male 5,796,433/female 7,899,650)

Occupation distribution 24.1 hab/km²

More than 80% of Brazilians live in urban areas. São Paulo is the biggest and most populous city in South America, with a population of 11 million, and the adjacent metropolitan area has a total population of around 18 million. According to the UN World Urbanization Prospects report (2007) the São Paulo metropolitan area is the fifth most populous urban agglomeration in the world, after Tokyo, New York, Mexico City and Mumbai.

Education levels : 95% rate of schooling, but bad ranking in OECD for quality : 52th out of 57.

Employment rate : 68%

Income levels : 22 387 USD (17 581 euros) per year

Political/ Legal :

Political stability : Brazil is a federal republic since 1988. There is the separation between the State and the Church 1891. It’s a presidential democracy, the three powers are separated and the counter powers are developed. Finally, there are liberty and diversity of press.

Government policies : As the country is handling a program for economic growth, investors can access the support of the government in both financial and advising aspects.  A good point is MERCOSUL, which is supportive to direct investments in the country that even non-members would be benefited. Then, in consideration of the state and federal officials, a foreign firm can own the company 100%.  The absence of government share of corporate power is an incentive to management.

One potential barrier is the presence of state-level federations.  These are association of industrial companies that cooperates to achieve operational success and also to lobby effectively to the government.  In addition, the justice system in the country is...