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- 1. Symbiosis Institute of Management Studies Starring Nikhita Kumar || B 8 Chandrashekhar Cholli || B 20 Sreeraj P.S || B 22 Nafees Khan || B 23 Kamalamani Palle || B 65 BRAZIL-THE STEEPLED CHASE
- 2. Quick Facts… 5th Largest Country-Geography & Population Largest Portuguese Speaking Country Capital Brasilia Currency Brazilian Real
- 4. POLITICAL SYSTEM POLITICAL SCANDALS 2015 INDEX OF ECONOMIC FREEDOM
- 6. Political scandals, and the uncertainty they create, are helping to scare off investors. The most visible involves Petrobras, the state- controlled oil company. As the scandal has unfolded, Petrobras stock has fallen 60% over the past year, and the company has had to write off $2 billion in bribery-related costs, while grappling with low oil prices. POLITICAL SCANDALS
- 7. The case of Petrobras in Brazil, where corrupt officials siphoned billions of dollars from the country’s largest company into political parties’ coffers and private hands is recent example that serve as a reminder of the lack of significant progress in the region.
- 8. 1. RULE OF LAW • Property Rights • Freedom from Corruption 2. GOVERNMENT SIZE • Fiscal Freedom • Govt. Spending 3. REGULATORY EFFICIENCY • Business Freedom • Labor Freedom • Monetary Freedom 4. OPEN MARKETS • Trade freedom • Investment Freedom • Financial Freedom 2015 INDEX OF ECONOMIC FREEDOM
- 11. Economy • Financial Capital – Sao Paulo • Currency – Brazilian Real • GDP – $2.3 trillion • GDP Growth Rate - ( -1% 2015 ) • GDP Per Capita - $15,435 (2014) • GDP by Sector – Agriculture 5.5%, Industry 27.5% and Services 67% • Unemployment Rate - 7.3% ( December 2015 ) • Easy of doing Business – 120th Rank • Large population 203,824,520
- 12. Exports • $256 Billion • Transport Equipment, Iron Ore, Soybeans, Coffee etc • Main Export Partners 1. China 17% 2. USA 11.1% 3. Argentina 7.4% 4. Netherland 6.2% Imports • $238.8 Billion • Machinery, Electrical and Electronics, Oil, etc • Main Import Partners 1. China 15.4% 2. USA 14.7% 3. Argentina 7.4% 4. Germany 6.4% 5. South Korea 4.1%
- 13. Features • Rapidly expanding middle class • Brazil's economy outweighs that of all other South American countries • High interest rates have made it an attractive destination for foreign investors • 85 percent of the population living in urban areas in 2013 • The Brazilian economy is characterized by moderately free markets and an inward-oriented outlook
- 14. Features • Corruption costs Brazil an estimated 53 billion U.S. dollars in 2013 • World’s largest producer of coffee for the last 150 years • largest company Petrobas -revenue 130 billion U.S. dollars • Gross External Debt $482 Billion • Public Debt 54.9% of GDP • Foreign Reserves $377.5 Billion
- 15. Foreign Direct Investment - Reason to Invest in Brazil • FDI inflow of USD 62 billion in 2014 • A domestic market of nearly 200 million inhabitants • A booming economy; • Easy access to raw materials • A diversified economy, less vulnerable to international crises • A strategic position allowing easy access to other South- American countries
- 17. Technology • Leader of science and technology in South America • IT market in Brazil is the largest in Latin America (47.4%) And it accounts to 3% of the global IT market • Brazil got off to late industrialization which began in 1930s • The acceleration pace of the growth was witnessed till 1980
- 18. •Technological research largely carried out in public sector, more than 73% funds from govt •1% of GDP is spend on R&D •According to UNESCO Brazil had about 625 researchers for every 1 Mn citizen •Brazil has highest level of patent application in Latin America •European Union agreement for scientific and technological cooperative Technology
- 20. Science and Medicine: • Legislation Permit on Stem cell research in vitro fertilized embryos – Catholics opposition on human cloning • Clinical Trails on Humans – Brazilians as human guinea pigs Business: • The clean company law (2014) – Strict implication on domestic and foreign companies on corruption. IP Laws: • Conflict between -- Patent & Trademark office vs. Health Organization especially in Life Sciences. Ethical Laws &Factors
- 21. Sports • International Convention – No rules against Doping till 2007 • FIFA 2014 world cup – protests from civilians • 2016 Olympics – Tightening corruption laws Education • Corrupt Schools, Corrupt Universities: The Unesco intervention Ethical Laws &Factors
- 23. Employment Laws: • 13th month Salary • >100 employees Must employ a min mandatory quota of employees with disabilities. Criminal Laws : • Sentencing – Max 30 years ONLY • Preferential treatment in Jails for prisoners having college degrees such as better cells and food. • Legal drinking age is 18 but it is not enforced. Tax Laws: • High Tax burdens on citizens • 10% service charge is automatically included in restaurants and hotels. Legal
- 25. Deforestation-Cocoa Boom Water Crisis Waste Management
- 26. No. of Env Policies -6th BRICS Summit-MOUs on Environment Cleaner Technology -Investment -Govt Incentives Govt Ineffective -A little helpful -But Execution of these policies remains a question mark What is Brazil Doing?
- 30. • 20% of the population lives under the poverty line • 5 % of the population owns 80 % of Brazil's land • Elite 10 % control 53.2 % of wealth • 85 % of Brazilians have no system of sewage disposal • More than 70 % of the population have no running water at all Inequity of Wealth Distribution & Poverty
- 31. • Like Indian family ties are strong in Brazil • Brazilian family ties provide considerably greater access to business joint ventures • As against the culture of western world, Brazilians as a whole look more or less favorably on the practice of nepotism • loyalty is generally more highly valued than in nations such as the United States, Canada, or Great Britain Family Ties
- 32. Language • Most populous Portuguese-speaking country in the world • Portuguese language is a useful tool when doing business in Brazil • The use of Portuguese in Brazil by business people is of particular value • English is also widespread, especially among the educated and the business class
- 33. Gender Roles • Gender roles are more clearly differentiated in Brazil than in western part of the world • Gender-based etiquette exist in contrast to U.S. business people who avoid gender-based etiquette • Dress is also highly differentiated between men and women in Brazil. Many Brazilians give considerably more attention to make-up and appearance
- 34. Education • Education itself is not widespread in Brazil as a whole • One half of Latin America's illiterate population lives in Brazil • Less than 18 percent of all Brazilians over the age of ten have gone beyond four years of school • more than half of all Brazilian children have never gone to school at all
- 35. Time Conception • Brazil has a polychronic culture i.e. ranks personal involvement and completion of existing transactions above the demands of preset schedules • Appointments are secondary
- 36. NONVERBAL COMMUNICATION • Brazilian concepts of personal distance are considerably closer than western world • Brazilians also place a good deal of emphasis on touch. E.g. handshakes of considerably longer duration and greeting kisses between men and women as well as among women themselves • Brazilians may be more expressive with their gestures • Business dress is considerably more fashion-conscious than elsewhere in the world E.g. Shoes in particular receive considerable attention in Brazil
- 37. Obrigado India!