This joint presentation with Kegler Brown, JPMorgan Chase and the Ohio Department of Development educated attendees regarding the legal and financial considerations to be considered when doing business in Brazil, Chile and Colombia. Topics addressed include Mercosur, labor, finance, trade, tax, culture, politics and the regulatory environment in South America.
Emerging Market Study – Top 3 for business in South America. This presentation gives a brief information about the top 3 emerging markets in South America.
Emerging Market Study – Top 3 for business in South America. This presentation gives a brief information about the top 3 emerging markets in South America.
Even if the economic outlook for Latin America shows a relatively positive picture for the coming years it is important to know that the General Regional Economic Forecast was trimmed from 4.2% to a 3.9%, by the FMI.
www.hasnainmraza.com
Africa has infinite potential. With numerous resources, an improving business climate and better economic governance, the numbers showing growth have been very positive. This presentation covers topics that speak on Africa's growth and where it can go. Here's a few stats that show how well the continent is doing:
A report from the African development bank said 33% of Africa's countries have GDP growth rates higher than 6%.
The costs of starting a business dropped upwards of 66% over the last 7 years.
The continent's middle class is growing at a very quick rate - approximately 350 million Africans now earn between $2 and $20 a day.
The share of the population living below the poverty line in Africa has dropped from 51% in 2005 to 39% in 2012.
Africa's collective GDP was $1.6 trillion in 2008, which was roughly equal to Brazil and Russia's GDP.
www.hasnainmraza.com
Even if the economic outlook for Latin America shows a relatively positive picture for the coming years it is important to know that the General Regional Economic Forecast was trimmed from 4.2% to a 3.9%, by the FMI.
www.hasnainmraza.com
Africa has infinite potential. With numerous resources, an improving business climate and better economic governance, the numbers showing growth have been very positive. This presentation covers topics that speak on Africa's growth and where it can go. Here's a few stats that show how well the continent is doing:
A report from the African development bank said 33% of Africa's countries have GDP growth rates higher than 6%.
The costs of starting a business dropped upwards of 66% over the last 7 years.
The continent's middle class is growing at a very quick rate - approximately 350 million Africans now earn between $2 and $20 a day.
The share of the population living below the poverty line in Africa has dropped from 51% in 2005 to 39% in 2012.
Africa's collective GDP was $1.6 trillion in 2008, which was roughly equal to Brazil and Russia's GDP.
www.hasnainmraza.com
A comprehensive overview of what investors need to know about doing business in the United States, including entry options, IP protection, employment law, liability and import-export issues.
Larry McClatchey presented "Keeping the Gold: Successfully Resolving Preference Claims" on November 18-19 at the 2015 Great Lakes Region Credit Conference.
The presentation examined the definition of preference law, preferential transfer, courses of business defense and new value issues in the courts.
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Running Head Colombia’s Strategy and Performance.Colombia’s Str.docxjoellemurphey
Running Head: Colombia’s Strategy and Performance.
Colombia’s Strategy and Performance 7
Colombia’s Strategy and Performance
Student’s Name
Institution
Colombia’s Strategy and Performance
Colombia is a country with an upper middle income. It’s Latin American fourth largest economy power. Petrol and its products is the country’s main export contributing to 45% of Colombia’s export. Manufacturing makes 12% of the export. The countries growth rate is over 10% each tear. Colombia’s information system is the fastest growing in the world with the country owns the longest fiber optic network in Latin America (Efe B, 2012). The country further has the largest ship building industry in the world. By 2015, Colombia became the fourth largest economy in Latin America. It’s ranked 31 worldwide.
Since 1810, peso is the country’s currency. Its ISO4217 code is COP informally abbreviated as COL$. The official peso symbol is $. The exchange rate of peso to American dollar is 1:0.00040
In 2013, Colombians GDP was worth 378.15 billion US dollars. This represents 0.16 percent of the world’s economy. This according to statistics is the highest recorded value ever made in its history. Colombia GDP has continually increased with time as represented in Fig 1 below.
Industry and agriculture in Colombia have greatly contributed to the gradual increase of GDP value:
Manufacturing : Colombia has been manufacturing domestic appliances since 1903.however exportation of the appliances started in 1990’s.one of Colombia’s largest producers, HACEB, has been producing fridges since 1950 (Bushnell & Rex A,2010). Colombia also manufacture products for other companies E.g. whirlpool. This has placed Colombia as the third largest producer of electronic appliances in Latin America
.
Electronic manufacturing has also contributed to the new GDP value. Colombia is a major producer of electronics in the whole of Latin america.it is ranked as the second largest producer and exporter of electronic goods. In 2014; the government launched a national campaign to introduce and promote IT and electronics.
Colombia has heavily invested in its infrastructure industry to promote trade within the country. The infrastructure sector has readily increased at a rate of 20% annually. The country has developed the “Fourth Generation Network” to enable them achieve their infrastructure target. The country aims at building a 7000 km road for the 2016-2020 periods. Further plans are being made to build national high speed train network.
The agriculture sector has experienced some major drawbacks but it is steadily picking up. Its adverse climate and topography allows the cultivation of various crops. The hot regions readily support beef cattle rearing, cocoa growing among a few (Aguilera, 2011). The high temperature region, between 1000-2000m, allows coffee and maize farming ...
Developing the Nigeria Manufacturing sector is a route to opening up a new frontier for the expansion of trade, productivity & competitiveness
• Currently, Industrial capacity is very low with critical industries within the real sector performing below expectations
• The contribution of manufacturing to Nigeria’s GDP is less than 10%
• This is very sad given the fact that retail and wholesale trade are growing at a very fast rate
• And given the fact that Agriculture account for almost 24% of Nigeria’s GDP, there are indications that if a proper framework is put in place, Nigeria’s manufacturing can begin to witness phenomenal growth
• Part of the factors that will help shore up local production and reduce the cost of doing business in Nigeria are:
• The Power Sector reforms - this needs to be fine-tuned
• The strengthening of a policy framework which removes double taxation and encourages investment in the vertical integration of primary sector, Agriculture to secondary sector, production
• Such policies must be backed with the right fiscal policies which give a measure of comfort to infant industry against global competition
Similar to Selling to Brazil, Chile & Colombia- Toolkit for Success (20)
On Thursday, May 9, 2024, Kegler Brown presented its annual Managing Labor + Employee Seminar. The in-person and virtual seminar focused on timely information regarding labor and employee relations, and allowed attendees to earn CLE and SHRM credit hours.
On Wednesday, May 24, 2023 Kegler Brown presented its annual Managing Labor + Employee Seminar. The in-person and virtual seminar focused on timely information regarding labor and employee relations, and allowed attendees to earn CLE and SHRM credit hours.
On Thursday, February 23, Kegler Brown’s Construction lawyers, Don Gregory and Mike Madigan, presented an informative strategy session on ways to deal with central Ohio’s labor shortage and diversity and inclusion goals.
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On Tuesday, March 8, 2022 Kegler Brown presented its annual Managing Labor + Employee Seminar. The virtual seminar focused on timely information regarding labor and employee relations, and allowed attendees to earn CLE and SHRM credit hours.
On Tuesday, March 9. 2021 Kegler Brown presented its annual Managing Labor + Employee Seminar. The virtual seminar focused on timely information regarding labor and employee relations, and allowed attendees to earn CLE and SHRM credit hours.
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As part of our 2020 LGBTQ SCOTUS Ruling webinar on July 7th, Brendan and Danielle hosted an in-depth discussion about the recent SCOTUS decision protecting the employment rights of LGBTQ employees under Title VII. The webinar primed employers for what we think will be coming, provided advice on the issues and questions to think about moving forward, and gave important employment considerations as we begin to receive guidance from the EEOC and federal courts.
Key Legal + Business Issues - Navigating Complexities in Doing Business in th...Kegler Brown Hill + Ritter
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On December 3, Luis shared an update on Ohio’s medical marijuana law with the National Business Institute. He also discussed marijuana at a national level, detailing tax collections and the IRS sections related to doing business in marijuana. Using recent case studies, Luis illustrated how businesses can and cannot deduct or capitalize indirect expenses. Issues such as labor and licenses were also addressed. Luis also presented this topic at a December 17 event put on by the National Business Institute in Dayton, Ohio
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On February 27, Luis presented at a seminar put on by the Columbus Bar Association examining Ohio’s medical marijuana industry from a legal perspective. Including not only statutory and regulatory issues, this seminar also looked at commercial transactions and ownership/licensure transfers. It also discussed concerns typical of any industry, such as employment issues and capital raising, but that have unique challenges when it comes to medical marijuana. They also looked ahead to discuss the possible future of marijuana in Ohio, including questions of federal regulation and recreational use.
On January 29, Tony and Luis spoke to attendees of the Ohio Agribusiness Association’s 2020 Industry Conference, providing vital education on cannabis, cannabinoids, and the differences between hemp and marijuana. They also broke down what Ohio’s Medical Marijuana Act does not include in order to provide attendees with guidance on employer rights. Focusing on further employment concerns, Luis and Tony explained what the Ohio Bureau of Workers’ Compensation will and will not cover, and discussed testing, workplace policies, ongoing legalization trends and more.
Presented on 11/21 by Eric Duffee and Randy Gerber, Founder and Principal of Gerber LLC, as part of a four part series. This segment of the series covered equity-based employee incentives. It offered a clear description as to what they are, why companies use them, as well as some things to consider. Randy and Eric showcased a variety of examples along with a few alternatives in regard to compensation.
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A panel discussion Q+A about topics ranging from advisory opinions, recent ethics developments, identifying issues, and the duty to report, were all covered by Kegler Brown litigators Jane Gleaves and Jason Beehler.
Moderator, Chris Weber discussed ways to navigate Ohio's Advocate-Witness rule, and his personal recommendations for best practices.
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A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
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Selling to Brazil, Chile & Colombia- Toolkit for Success
1.
2. Doing Business in Brazil, Chile
& Colombia
Presented by:
Vania Zulatto, Director of TVZ International- Brazil
Verónica Medina, COO of TradeChile S.A.- Chile & Colombia
6. Why Brazil?
• Strategic location
• Approximately 50% of South America’s GDP
• Political and economic stability
• Favorable exchange rate: U$1.00 = R$ 1,75
• Largest and most diversified industrial country in Latin
America
7. Economy
• 6th largest economy in the world
• Solid Banking System
• Inflation under control: 4.4% estimated for 2012
• GDP: US$ 2.3 trillion
• GDP per capita: US$ 8,207.00
• Growth Rate: 4% estimated for 2012
• Brazil part of a world-wide phenomenon of a swelling middle
class
• In Brazil the economy is largely domestically oriented and
consumer demand drives wage income.
8. World Cup 2014 and Olympic Games 2016
Business Opportunities
• Brazil - World Soccer Cup in 2014
• 12 cities do host the World Cup
• Investments needed in airport infrastructure
• Hotels
• Public transportation
• Stadium building / refurbishing
• Communication
• Rio de Janeiro - first-ever Olympic Games in South
America in August-September 2016
• These events will generate numerous trade and
investment opportunities in several areas
9. Market Opportunities
• State-of-the-art equipment and technologies
• Agriculture Equipment
• Aerospace and Aviation
• Airports
• Information Technologies
• Telecommunications
• Transportation
• Electrical Power
• Oil and Gas
• Safety and Security
• Environmental Technologies
• Mining
• Medical Equipment
• Architecture/ Engineering/Construction
10. Brazil Import and Export
Statistics 2011 - (US$)
Brazil Imports Statistics
Commodity: Total
World 226,243,408,907
1. United States 33,962,382,474
2. China 32,788,424,507
3. Argentina 16,906,099,483
4. Germany 15,212,859,089
5. Korea South 10,096,972,279
Brazil Exports Statistics
Commodity: Total
World 256,039,574,768
1. China 44,314,595,336
2. United States 25,804,628,156
3. Argentina 22,709,344,431
4. Netherlands 13,639,692,908
5. Japan 9,473,095,520
11. Source: Ministério do Desenvolvimento
Brazilian Imports – 2011
Imports by Use Categories - % Share
12. Market Challenges Advantages
• Growing consumer market
• Diversified/sophisticated industry
• Geographical proximity / US
• Brazilians receptive to US
culture/products
• Favorable exchange rate
• High import tariffs (0-15%)
• Informal economy
• Burdensome regulations
• Slow/bureaucratic customs
system
• European /Asian competition
13. How to Enter the Market
• Agents & Distributors
• Licensing Agreements
• Joint Ventures
• Local Office
• Government Sales
14. Strategies for Success in Brazil
• keep in touch and informed on the market, THE TIME IS NOW!
• take advantage of the favorable exchange rate.
• visit the market (Major Trade Shows/Trade Missions)
• learn local business practices
• reestablish contact with former clients
• personal relationships are important
• be flexible and innovative with your negotiations
• Meet partners face to face
• Be fast on your follow-up / give support to your rep
• Provide after sales and technical assistance
• Translate your catalogs into Portuguese
• Be patient
• Try to understand the complex tax regime
15. Contact Us!
Obrigada!
Thank You!
Ohio Department of Development
Global Markets Division
(614) 466-5017
Vania Zulatto
São Paulo, SP - Brazil
(55 11) 3384-9051
vzulatto@tvzinternational.com.br
www.tvzinternational.com.br
34. 3 Issues that can Make or Break
Your Latin America Business
Strategy
Agency, Distributorships &
Labor
-Creation
-Termination
3. Labor
Methods of Entry
-Strategic Considerations
-Available Organizational &
Entity Structures
-Features
1. Entry Method &
Organizational
Structure
Import/Export
-Process
-Taxes
-Free Trade Zones &
Treaties
2. Regulation & Tax
Methods of
Entry
Import / Export
Agency,
Distributorships
& Labor
35. Entry Method & Organizational
Structure
Strategic Considerations
Available Organizational & Entity Structures
Features
Methods of
Entry
Import / Export
Agency,
Distributorships
& Labor
36. Entry Method & Organizational
Structure
Political
The ability of government to respond to and NOT create political
risk
Economic
Macro trends, Currency risks
Social
The ability of stakeholders to identify vulnerabilities & apply
pressure to the company to change its behavior
Technological
Infrastructure, IP Protection, Government Incentives
P E S T
What are the Political, Economic, Social and Technological
reasons to enter Brazil, Colombia or Chile?
export, manufacture, distribute, design . . .
Methods of
Entry
Import / Export
Agency,
Distributorships
& Labor
37. Entry Method & Organizational
Structure P E S T
Methods of
Entry
Import / Export
Agency,
Distributorships
& Labor
0
10
20
30
40
50
60
70
80
90
100
PDI IDV MAS UAI LTO
Chile
Chile
0
10
20
30
40
50
60
70
80
PDI IDV MAS UAI LTO
Brazil
Brazil
Geert Hofstede’s Cultural
Dimensions
Power Distance
Individualism
Masculinity
Uncertainty Avoidance
Long-Term Orientation
www.geert-hofstede.com
0
10
20
30
40
50
60
70
80
90
PDI IDV MAS UAI LTO
Colombia
Colombia
38. 0
10
20
30
40
50
60
70
80
90
PDI IDV MAS UAI LTO
Latin America
Latin America
Entry Method & Organizational
Structure P E S T
Geert Hofstede’s Cultural
Dimensions
Power Distance
Individualism
Masculinity
Uncertainty Avoidance
Long-Term Orientation
www.geert-hofstede.com
Methods of
Entry
Import / Export
Agency,
Distributorships
& Labor
0
10
20
30
40
50
60
70
80
90
100
PDI IDV MAS UAI LTO
US
Brazil
Colombia
Chile
Latin America
0
10
20
30
40
50
60
70
80
PDI IDV MAS UAI LTO
Brazil
Brazil
39. Entry Method & Organizational
Structure
Direct sale from US using freight forwarder
Non-Equity Alliance
Distribution agreements
Licensing agreements
Franchising agreements
Supply agreements
Joint venture
Equity Alliance
Joint venture
Joint company
Wholly Owned Subsidiaries
Greenfield operations
Methods of
Entry
Import / Export
Agency,
Distributorships
& Labor
May also require
a small wholly
owned subsidiary
holding company
presence in
country
40. Entry Method & Organizational
Structure
Joint Venture
May be created with or without a full joint company
Contractual joint ventures between subsidiary company and
a partner company
Low cost entry and exit to new markets, industries and
industry segments
Opportunity for learning
Provides a “contractual” framework for operations without
generating many issues associated with an agency
relationship
Enables each party to take full responsibility for its
contribution to the venture while minimizing the issues
associated with exclusivity
Enables low cost entry and exit
May later evolve into full equity alliance
Methods of
Entry
Import / Export
Agency,
Distributorships
& Labor
41. Entry Method & Organizational
Structure
Methods of
Entry
Import / Export
Agency,
Distributorships
& Labor
Similar to US
LLC
Similar to US
Corporation
Sociedade Limitada
(LTDA)
Sociedade Anônima
(SA)
Sociedad por Acciones
Simplificada
(SAS)
Sociedad Anónima
(SA)
Sociedades de
Responsabilidad
Limitada (SRL)
Sociedades
Anónima (SA)
42. Entry Method & Organizational
Structure
Methods of
Entry
Import / Export
Agency,
Distributorships
& Labor
-No restrictions on foreign ownership*
-No minimum or maximum capital
requirements*
-Partner & parent company liability
limited to capital contributions
-Product Liability: Yes
-No restrictions on foreign ownership*
-No minimum or maximum capital
requirements*
-Partner and parent company liability is
limited to capital contributions ** In
insolvency PC is responsible for
subsidiary liabilities if PC caused the
subsidiary’s liquidation
-Product Liability: Yes
-No restrictions on foreign ownership*
-No minimum or maximum capital
requirements*
-Partner and parent company liability is
limited to capital contributions
-Product Liability: Yes
LTDA / SAS / SRL
&
SA Common Features
43. Import / Export
Import Export Process
Associated Taxes & Duties
Free Trade Zones & Treaties
Methods of
Entry
Import / Export
Agency,
Distributorships
& Labor
44. Import / Export
Methods of
Entry
Import / Export
Agency,
Distributorships
& Labor
17 Days
-Document Preparation (8
days)
-Customs clearance and
technical control (4 days)
-Ports and terminal handling (3
days)
-Inland transportation and
handling (2 days)
13 Days
-Document Preparation (6
days)
-Customs clearance and
technical control (2 days)
-Ports and terminal handling (2
days)
-Inland transportation and
handling (3 days)
20 Days
-Document Preparation (12
days)
-Customs clearance and
technical control (2 days)
-Ports and terminal handling (4
days)
-Inland transportation and
handling (2 days)
General Import Process
& Timeline
Source: World Bank, Doing Business
2012
Importing a container of
goods to Brazil requires 8
documents, takes 17 days
and costs $2,275
Importing a container of
goods to Colombia requires
6 documents, takes 13 days
and costs $2,830
Importing a container of goods
to Chile requires 6 documents,
takes 20 days and costs $795
Baseline:
-medium size business
-ship to economy’s
largest business city
-private, LLC
-non hazardous goods
-dry cargo, 20-foot full
container
* All US exports are also subject to US export
controls *
45. Import / Export
Methods of
Entry
Import / Export
Agency,
Distributorships
& Labor
Associated Taxes &
Duties
II-Import Duty
varies based on product &
Country of origin (CNM,
HS)
0-35% Import Duty
0-5% raw materials,
20% finished consumer
goods, 35% autos and
luxury items
0-35%
12%
avg
Import Duty 6%
IPI-Industrial Product
Tax
Varies based on product
(CNM)
20%
avg
VAT 16% VAT 19%
PIS-Social Integration
Program Contribution
1.65%
COFINS-Social
Security Financing
Contribution
7.6%
ICMS-State Tax
SP 18%
7–
25%
46. Import / Export
Methods of
Entry
Import / Export
Agency,
Distributorships
& Labor
-Importer must register with
Brazilian Ministry of Development,
Industry and Commerce
-No payment for the product may
be made by a Brazilian entity
-Exemption from II (Import Duty)
-No license required for samples &
promotional products outside of
prior license list
-Maximum of 10 samples
-Max value of US $50 per sample
-If over 10 samples but less than
US $1,000 value packing must
state “merchandize with no
commercial value"
-Subject to applicable custom
duties
-Under the terms of the US / Chile
FTA
-Professional equipment
necessary for carrying out
business may receive temporary
duty-free admission
-This is intended for display or
demonstration of commercial
samples
-Temporary admission of food
samples require additional
consideration
Samples / Tradeshow
exceptions
47. Import / Export
Methods of
Entry
Import / Export
Agency,
Distributorships
& Labor
Additional Tax
Considerations
Corporate Tax
Plus 10% on taxable
income over R$240,000
15% Corporate Tax 33% Corporate Tax 17%
Transfer Price
Considerations
Yes Transfer Price
Considerations
Yes Transfer Price
Considerations
Yes
On average, firms make 9
tax payments per year and
spend 2600 hours per year
filing, preparing and paying
taxes and pay total taxes
amounting to 22.4% of profit
On average, firms make 9
tax payments per year and
spend 193 hours per year
filing, preparing and paying
taxes and pay total taxes
amounting to 18.9% of
profit
On average, firms make 9
tax payments per year and
spend 316 hours per year
filing, preparing and paying
taxes and pay total taxes
amounting to 18% of profit
Baseline:
-medium size business
-began operations 1/1/2009
-taxes & mandatory
contributions are measured
at all levels of government
-a range of standard
deductions & exemptions is
also factored
Source: World Bank, Doing Business
2012
48. Import / Export
Methods of
Entry
Import / Export
Agency,
Distributorships
& Labor
Free Trade Agreements
and Memberships
Double Tax Treaties
US
Colombia
Chile
NO
NO
YES
Double Tax Treaties
US
Brazil
Chile
YES
NO
YES
Double Tax Treaties
US
Brazil
Colombia
YES
YES
YES
Membership
Mercosur (Argentina,
Uruguay, Paraguay,
Bolivia, Chile, Colombia,
Ecuador, Peru)
Latin American
Integration Association
LAIA (Argentina, Brazil,
Mexico, Chile, Paraguay,
Uruguay, El Salvador,
Costa Rica,
Guatemala, Nicaragua,
Honduras, Cuba)
Membership
Mercosur
Latin American
Integration Association
LAIA
Andean Community of
Nations CAN (Ecuador,
Bolivia, Venezuela – Peru
withdrew)
G-3 (Mexico, Venezuela)
Membership
Mercosur
Latin American
Integration Association
LAIA
49. Import / Export
Methods of
Entry
Import / Export
Agency,
Distributorships
& Labor
-Manaus ZFM
-Areas de livre
Comercio ALC (4)
-Amazonia Ocidental
-Permanent Free
Trade Zones (23)
-Special Enterprise
Free Trade Zones
(40)
-Transitory Free
Trade Zones
-Inquique
-Punta Arenas
Free Trade Zones: The
basics
Reduced/Exempte
d
II, PIS & COFINS
Reduced/Exempt
ed
II & VAT
Reduced/Exempt
ed
II & VAT
50. Import / Export
US / Colombia Free Trade Agreement
18 to 24 months to implement
Will Reduce tariffs on 80% of US imports
Other tariffs reduced over 10 years
Colombia to implement new domestic legislation in a
number of areas:
sales agents, intellectual property, provide greater access
to several sectors in financial services and
telecommunications investments
Methods of
Entry
Import / Export
Agency,
Distributorships
& Labor
52. Agency, Distributorships &
Labor
Methods of
Entry
Import / Export
Agency,
Distributorships
& Labor
General Labor
Considerations
-Labor law is rooted deeply
-Written contract not required, employment relationship
may be implied
-Termination without cause will likely require provision of
wages, holiday compensation and other benefits
53. Agency, Distributorships &
Labor
Methods of
Entry
Import / Export
Agency,
Distributorships
& Labor
Creation:
-If written contract does not exist, one may be implied
-Contract should contain limitations, termination events, territory,
products or goods, commission structure and time of payment
-Exclusivity is not presumed
Termination:
Upon termination, without cause, agent entitled to:
-1/12 of the total compensation during the time of agency
-If a specific agency term , then the average monthly
compensation for half of the months remaining in the contract. If
$3,000 per month and 12 months into a 36 month contract, then
agent would receive $3,000 x 12 = $36,000
-Expenses related to promoting the brand and opening the
market
Creation:
-Written registered contract subject to Colombian law
-Contract should contain limitations, termination events &
territory
Termination:
-Upon termination agent entitled to 1/12 of the average
commission of the last three years
-Without cause termination agent entitled to damages for
opening market & promoting product
Creation:
-In Chile, agency, distribution and franchise agreements are not
specifically regulated. However, case law has provided some
useful guidance
-Their validity, binding nature and enforceability has been
recognized by the civil and anti-trust courts
-Relationship is contractual
Termination:
-Chilean civil and anti-trust courts provide precedents for
termination and have established circumstances in which they
are null and void
-Relationship is contractual
-Contract subject to anti-trust, consumer and general
commercial contract law principals
Sales Agent / Distributor
Creation & Termination
55. Additional Sources
Doing Business 2012, Doing Business in a More Transparent World, World Bank
Report, October 20, 2011
UBS Investment Research: Emerging Economic Focus, UBS, August 29, 2011
A Closer Look at Brazil’s Credit Boom, Deutsche Bank EM Special Publication, July
22, 2011
Anchoring, De-Anchoring, Re-Anchoring, Bradesco Corretora Economics BBI Equity
Research, September 6, 2011
Economic Outlook: Brazil, BBVA, Third Quarter 2011
Brazil Auctions Rights to Airport, WSJ, August 23, 2011
The Geopolitics of Brazil: An Emergent Power’s Struggle with Geography,
STRATFOR, July 14, 2011
The Aging World, Ned Davis Research Inc, July 21, 2011
Japanese Dump Real Funds at Fastest Pace Since Earthquake: Brazil Credit,
Bloomberg, September, 30, 2011
First they went for the currency, now for the land, The Economist, September 24,
2011
Gaining & Sustaining Competitive Advantage Third Edition, Jay B. Barney, 2007
Privatization and the Distribution of Assets and Income in Brazil, Economic Reform
Project: Global Policy Program, July, 2000
On this slide, explain that there are three key issues and that to best address the group (small to medium size enterprises, looking to export their products from the US to BCC) we have organized the content of our presentation into this format. First we will cover Methods of Entry . . . , 2nd we will address issues surrounding impor/export . . ., and 3rd we will discuss Agency distributorships and labor issues.
When you think of how to enter Brazil, Colombia or Chile, what do you think about? What questions jump into your mind. I generally begin with asking why? Is it because your competitor entered? Is it because an article in the WSJ said Brazil is not the 6th largest economy in the world, the largest in Latin America and the middle class is growing at an explosive rate? Is it because your organizations’ core competencies can be leveraged to do xyz? All of those could be great reasons, but the way that you approach the information we are about to discuss, and the decisions you make will vary greatly based on the answer to that question.
Simply a framework to discus macro level factors, how you evaluate the factors will differ based on your organizations industry, strategy, competencies and goals; however, I try to pose a general question that you can ask yourself to begin the analysis and help identify what additional information and factors you should research
-list of several available organizational structures, take a moment on this slide to discuss the importance of research, culture and selecting the right local partner. Mention that we will likely hear several stories related to this topic during the panel discussion later today. Provide a list of some research tools
-you may decide that you need an actual legal presence in Brazil, Colombia or Chile to execute your desired entry method. Although, each country offers several legal entities, these are the most common that are employed by foreigners when creating a subsidiary for the purpose of importation
-list of several available organizational structures
This is a very generic process, the way that you import will vary greatly based on your individual circumstances. If you decide it is best to register as an importer, then you will need to allocate time to navigate the that process. In Brazil: Siscomex registration, RADAR registration (ordinary or simple), licensing with various ministries (by product)Colombia: Chamber of Commerce registration, obtain tax registration, locate tariff sub-regime
There are several social contribution, pay roll taxes, health benefit and pension taxes also required to be paid in each country
Mention US Chile FTA, since 2004 (it is also referenced on the first free trade agreements “basics” slide noted as a YES under double tax treaty)
In Chile, managers may be terminated without cause in certain circumstances – source: PLC