Cultural Traits of Brazil
Cultural Traits Of Brazil Introduction Brazil is the fifth largest country in the world, has the ninth largest economy and a population of around 178 million (According latest census in 2000). Largest economy in Latin America, and the largest work force. Offers a wide diversity of cultural and social activities. Following the oil shock in 1970’s Brazil developed its sugarcane-alcohol industry which today fuels around 20% of private car fleet. Heavy bureaucracy. The political system has 3 independent branches: Executive, legislative and judicial. Has abundant agriculture, mineral and energy potential.
It is world’s largest producer of tin, quartz. Broad industrial base and infrastructure, diversified economy. Major manufacturing industries include petrochemicals, cement, automobiles, steel, mining etc. Attracted 3% of total global foreign direct investment last year. FORM OF BUSINESS ORGANISATIONS AND STRUCTURE:- Two types of companies: Corporation Limited liability company (LLC) All key decisions are taken by senior management. Relationships are of key importance in the Latin culture and the boss and subordinates work hard in order to foster a relationship based on trust and respect for the personal dignity.
Initial business meetings will be formal but gradually the future meetings will tend to become more informal. Hurry is a word Brazilians don’t like. Brazilians see time as something outside their control. Some Business Traits: Communication Style Dress Code Business Negotiations Business meals Business agreements DOING BUSINESS 2009 DATA FOR SELECTED ECONOMIES (Out of 181 countries) ADVANTAGES OF DOING BUSINESS IN BRAZIL:- The dynamics of the Brazilian economy are impressive to more demanding investors and consumers. Brazil borders almost all the South America countries, except Chile and Ecuador.
The Brazilian economy presents a sustainable and strong growth. The Brazilian GDP growth rate reached 5. 3 per cent in 2007, with an inflation rate of 3. 7 per cent. Brazil has the biggest and most diversified science, technology and innovation system of Latin America. Brazil has internationally consolidated its competence in producing ethanol and biodiesel. Contd… 67 airports with annual flow of 110 million people, 46 ports with capacity for over 600 million tons/year, 29,596 km of railways – the eleventh world railway mesh, 1. 6 million km of roads – the third world road mesh.
Brazil has one of the best communication structures with 125 million mobile lines, at about 42 million fixed lines and more than 1 million public telephones. The foreign companies settled down in Brazil are free to send their profits to their country of origin. The fourth destination for Foreign Direct Investment (FDI) among emerging markets. The most advanced banking system. DISADVANTAGES OF DOING BUSINESS IN BRAZIL:- Brazil has a volatile political environment. Is one of the highly corrupted countries in the world. Fast changing business conditions.
The standard of living for large population is low. The administration of legal bodies is slow and cumbersome. Hiring skilled workers are difficult because of stringent labor laws. Normally 152 days are required on an average to start a new business which is much higher. Governmental inefficiency, legal and bureaucratic complications, excessive taxation, poor infrastructure, inflation are other matters which makes business in Brazil costly. References: www. worldbusinesscentre. com Doing Business 2009 Data by World Bank. Deptt. Of Economy, BRAZIL- FACT SHEET 2008 PDF
