Brazil

Overview

Extremely large amount of natural resources and attractive market
Brazil is largest economy in South America.
Yet to live up to its economic potential as the worlds' 7th largest economy
Most industrial development is concentrated around Rio de Janeiro and Sao Paulo, some efforts made to expand north.
Economy characterized by high inflation, protectionism, corruption, and political and social instability
Brazil attempting to expand development, productivity, and integrate into the world economy.

Opportunities:

Chemical products
computer products
electronic components
food processing equipment
medical equipment
oil and gas field machinery
plastics
pollution control equipment
telecommunications products
wheat

Marketing Tips

Country has diverse and sizable domestic market
Booming manufacturing export market
Population of over 155 million mostly located on the coast
Telecommunications systems are fairly good throughout the country, and a growing number of international transactions are being doing by fax and the internet.
Liberalized regulations and procedures affecting imported software, business registration, and international franchising have added new and promising markets, although most market segments are already open to foreigners
Some protectionist regulation still remains in certain industries
Brazilians tend to distrust foreigners and insist on a high degree of control in dealings.
Pricing difficult because of high inflation, although government has been taking steps to lower it
There is a large amount of language diversity; official language being Portuguese. English is widely used in the business community, but other European languages such as German and French are also spoken
Product sales are typically price driven, therefore price research a high priority
Customer service is considered crucial for all new products

Business Culture

Portuguese-speaking Brazilians tend to be less formal than their Spanish-speaking compatriots.
Handshakes are the most common introduction tool and tend to be prolonged by most standards.
Business cards are a necessity and exchanged at all levels of business interaction. -Brazilians tend to be nationalistic and xenophobic, insisting on only doing business with foreigners interested in long-term commitment.
Contacts and introductions are crucial in meetings.
A mutual business acquaintance is required to make introductions.
Standards of dress are less formal than other Latin American countries

Do's	Don'ts
It is wise to know Brazilian history and culture, including the Portuguese language. If invited out, bring a small gift. If you are bringing flowers, never use purple, as it is associated with death.	Avoid wearing green or yellow (same as the flag). Do not eat anything with your hands. Do not drink from a bottle or can, use a glass. Don't assume Spanish is enough, can be insulting. Never begin conversation during a meal.

Legal Environment:

Brazil is organized as a Federal Republic and its legal system is based on Roman civil code. A foreign company must obtain written permission to operate a branch in Brazil.

Mercosur: South America’s Version of NAFTA

Mercosur mission is to promote free trade and open up borders across South America. Mercosur will greatly influence companies and potential entrants doing business in South America.