2. What is our agenda?
Introduction
Research
Business
Environment
Recommendations
Conclusion
Q&A / Discussion
3. Where are we?
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
Source: https://www.cia.gov/library/publications/the-world-factbook/geos/br.html
4. Tell us about Brazil...
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
5. Tell us about Brazil...
Roman Catholic 73.6%
Protestant 15.4%
other 11%
5th largest country in
the world
White 53.7%
Mulatto 38.5%
>198 mln Brazilians Black 6.2%
Other 1.6%
(Japan,Arab, Amerindian)
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
6. What’s on offer?
World’s no.1 producer coffee, sugar,chickens,
Food & Agriculture
beef & orange juice (Economist, 2009)
Commodities Oil, iron ore, metals
Industry Embraer (Aircraft), CSN (Steel), JBS (Meat)
Brazil financial system has come a
Financial
long way‘ (Economist, 2009)
Extensive Market Large internal maket
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
7. A Land of Contrasts
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
8. A Land of Contrasts
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
9. Global Ranking
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
Source: http://www.doingbusiness.org/exploreeconomies/?economyid=28
10. Goldman Sachs
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
Source: http://www.finchannel.com/news_flash/Banks/48446_Goldman_Sachs_Launches_Onshore_Private_Wealth_Management_Platform_in_Brazil/
11. Goldman Sachs
BR IC
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
Source: http://www.finchannel.com/news_flash/Banks/48446_Goldman_Sachs_Launches_Onshore_Private_Wealth_Management_Platform_in_Brazil/
12. Research Approach
we can rec
what to ch
as this wil
place overn
Our Research Goal
To recommend how to do business in Brazil
To recommend improvements for Brazil
Process
Growth Business
Recommendations Sectors Lessons
Drivers Environment
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
13. Our Model
Informal
Business Economy Tax System
Culture
Bureaucracy
Labour Laws Infrastructure
Legal System FDI Government
Spending
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
14. Our Model
Informal
Business Economy Tax System
Culture
Bureaucracy
Labour Laws Infrastructure
Legal System FDI Government
Spending
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
15. Business Environment
Business
Culture Informal
Economy Tax System
‘Jeitinho’ Bureaucracy
Social
Corruption
Network
Labour Laws Infrastructure
Legal System Hierarchy
FDI Teamwork Patrimonialism Government
Spending
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
Source: Noguira, Alexander. G., 2009, Cultura Organizacional e Cultura Avaliativa Nas Empresas Brasileras
16. Business Environment
Informal
Economy Tax System
Business
Culture
Bureaucracy
Labour Laws Infrastructure
Legal System FDI Government
Spending
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
17. Business Environment
$50 billion Informal
Economy Competitive
evasion tax
Business
Culture
40% GDP
Extensive
2,600 hours Long Inefficiency
System
Labour Laws OECD <200 procedures Infrastructure
Tax System FDI Bureaucracy
Government
Legal System
Tax evasion Spending
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
Sources: OECD (2009), Economist (2009), World Bank (2009), Wright (2008)
18. Business Environment
$50 billion Informal
Economy Competitive
evasion tax
Business
Culture
40% GDP
Extensive
2,600 hours Long Inefficiency
System
Labour Laws OECD <200 procedures Infrastructure
Tax System FDI Bureaucracy
Government
Legal System
Tax evasion Spending
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
Sources: OECD (2009), Economist (2009), World Bank (2009), Wright (2008)
19. Business Environment
$50 billion Informal
Economy Competitive
evasion tax
Business
Culture
40% GDP
Extensive
2,600 hours Long Inefficiency
System
Labour Laws OECD <200 procedures Infrastructure
Tax System FDI Bureaucracy
Government
Legal System
Tax evasion Spending
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
Sources: OECD (2009), Economist (2009), World Bank (2009), Wright (2008)
20. Business Environment
Informal
Economy
Business
Culture Bureaucracy
Tax System
Labour Laws Infrastructure
Legal System FDI Government
Spending
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
21. Business Environment
Settlement > Least Informal
Legal System Economy FDI
Business Court Ruling Restricted
Culture Bureaucracy
Tax System
Backlog of Poor IP Privitization of Consumption
Cases Protection Industries Taxes
Infrastructure
Fixed-term Contracts
Rigid Laws
Prohibited Government
Labour Laws
Spending
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
Sources: OECD (2009), Economist (2009), World Bank (2009), Wright (2008)
22. Business Environment
Informal
Economy
Business
Culture Bureaucracy
Tax System
Legal System
Infrastructure
FDI Government
Labour Laws
Spending
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
23. Business Environment
Informal
Economy
Business
Ports Culture Old Truck ave. 40% GDP Bureaucracy
Overwhelmed 14 years Tax System
Government
Infrastructure Spending
Only Legal System
12% is Massive Welfare, Debt
Wrong Projects
asphalt Congestion & Investment
FDI
Labour Laws
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
Sources: OECD (2009), Economist (2009), Downie (2008), Wright (2008)
24. Business Environment
Informal
Economy
Business
Culture Bureaucracy
Tax System
Legal System
Infrastructure
FDI
Labour Laws Government
Spending
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
25. Recommendations
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
26. Recommendations
Bureaucracy
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
27. Recommendations
Bureaucracy Tax
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
28. Recommendations
Bureaucracy Tax Labour
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
29. Recommendations
Bureaucracy Tax Labour Infrastructure
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
30. Recommendations
Bureaucracy Tax Labour Infrastructure
•Entry mode
•Joint Venture
•Mutual
Benefit
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
31. Recommendations
Bureaucracy Tax Labour Infrastructure
•Entry mode
•Joint Venture
•Mutual
Benefit
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
32. Recommendations
Bureaucracy Tax Labour Infrastructure
•Entry mode
•Tax
•Joint Venture Consultancy
•Mutual •Avoid Taxation
Benefit
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
33. Recommendations
Bureaucracy Tax Labour Infrastructure
•Be reluctant
with hiring on
•Entry mode project base
•Tax
•Joint Venture Consultancy
•Show best
practice
•Mutual •Avoid Taxation
Benefit
•Offer real
opportunities
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
34. Recommendations
Bureaucracy Tax Labour Infrastructure
•Be reluctant
with hiring on
•Entry mode project base •Use business
•Tax cluster
•Joint Venture Consultancy
•Show best
infrastructure
practice
•Mutual •Avoid Taxation •Manage
Benefit infrastructure
•Offer real
opportunities
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
35. Sector Recommendations
R&D & Technology sector
Agricultural Sectors
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
36. R&D & Technology
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
37. R&D & Technology
t
Owner of a HIV Paten
•
i l
•A ctive in Braz
e
u t license pric
• Conflict abo
nt
ilia n governme
Patent ‘ta ken’ by Braz
•
do
m pany could
•N othing the co
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
38. R&D & Technology
• Active in B
razil
t
Owner of a HIV Paten
• • Facing the
same pro
(Wright 2 blems
i l
•A ctive in Braz 008)
t license pric
e • Governme
u nt legisla
• Conflict abo ti on
nt
ilia n governme • Became b
Patent ‘ta ken’ by Braz est-in-cla
ss sustain
• employe
r able
do
m pany could
•N othing the co • More succ
essful in
the gover negotiati
nment ons with
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
39. Sector Recommendations
R&D & Technology sector
Agricultural Sectors
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
40. R&D & Technology
Amazo n Case
The
•4% privately owned, 30%
without title
•Legislation change 2001
•Effects for foreign investors
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
41. R&D & Technology
Amazo n Case Our Reco
The mmendat
ion
•4% privately owned, 30%
without title • Be aware of the legal jungle
•Legislation change 2001 • Export preferred over ownership
•Effects for foreign investors • Defensive attitude
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
42. Conclusion
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
43. Conclusion
Observations
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
44. Conclusion
Observations
•Many opportunities for
economic growth
•Business environment can be
an extreme challenge
•Key Bottlenecks for competitiveness:
Informal Sector, Bureaucracy, tax
system, legal sector
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
45. Conclusion
Observations
•Many opportunities for
economic growth
•Business environment can be
an extreme challenge
•Key Bottlenecks for competitiveness:
Informal Sector, Bureaucracy, tax
system, legal sector
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
46. Conclusion
Observations Key Lessons
•Many opportunities for
economic growth
•Business environment can be
an extreme challenge
•Key Bottlenecks for competitiveness:
Informal Sector, Bureaucracy, tax
system, legal sector
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
47. Conclusion
Observations Key Lessons
•Many opportunities for
economic growth •High context culture
•Business environment can be
an extreme challenge •Search for mutual benefit
relationships
•Key Bottlenecks for competitiveness:
Informal Sector, Bureaucracy, tax
system, legal sector •Strategic Brazilian Partner
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
48. Q&A
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
49. Discussion
Stat ement
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
50. Discussion
Stat ement
Foreign firms should not expect Brazil’s
competitiveness to improve soon
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
51. Discussion
Stat ement
Foreign firms should not expect Brazil’s
competitiveness to improve soon
Brazil’s protectionist laws are justified to protect
foreigners from taking their natural resources
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
52. Discussion
Stat ement
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
53. Discussion
Stat ement
With so much potential, will Brazil be able to
sustain its growth?
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
54. Discussion
Stat ement
With so much potential, will Brazil be able to
sustain its growth?
Opportunities are lurking, would you set up
shop in Brazil?
Business
Introduction Research Recommendations Conclusion Q&A / Discussion
Environment
