country environmental overview

Country Environmental OverviewBrazil 1

Country Economic Situation Highlights (Slide 1 of 3)

The United States and Brazil’s economies are very depended on each other and are top trade partners for each other.

Brazil’s GDP Level was $3,275,227,247,397 and the GDP rate of growth was 0.103% for the year 2014.

Some of the United States to exports from Brazil are industrial machinery, electrical machinery, items nesoi, oil and mineral fuels, motor vehicles, vehicle parts, precision instruments, precious stones, metals, plastics, pharmaceuticals, and organic chemicals.

Brazilian trade balance was -$3,961,651,221 for the year 2014 and was ranked 99 out of 136 countries based on trade balance.

The key industries for Brazil in 2014 was agriculture at 5.22%, car industries at 23.97$, services at 70.81%.


Brazil’s Private businesses are 67.1% of the country, while 39.11% are public.The current inflation rate in Brazil is lower than it was in the beginning of the year. Consumer prices in Brazil increased by 8.74 percent year-on-year in July 2016, easing from a 8.84 percent growth in June but above market consensus of 8.66 percent.

Brazil imposes relatively high tariffs on imports including automobiles, automotive

parts, information technology and electronics, chemicals, plastics, industrial

machinery, steel, and textiles and apparel.


The United States has urged Brazil to implement the Inter-American Telecommunication Commission (CITEL) Mutual Recognition Agreement (MRA) with respect to the

United States. The United States and Brazil are both participants in CITELAccording to GlobalEdge, the labor force total in Brazil as of 2014 was 109,842,906. Brazil’s average family income can be broken down in two different ways: household net adjusted disposable income and household financial wealth. The average household net adjusted disposable income per year after taxes was 11,487 USD. About 7.4 percent of people in Brazil live below the national poverty line, which has steadily declined from past years. The urban unemployment rate has increased to 8.2 percent since February 2016, which is 42 percent more than the 5.8 percent rate last year.

Country Natural Resource and Population Overview- Opportunities

and Challenges (Slide 1 of 2)Located in the continent of South America, Brazil covers 8,459,417 square kilometers of land and

55,460 square kilometers of water, making it the 5th largest nation in the world.

Because of the varying heights above sea level,, the climate varies somewhat from region to region.

There are four distinct climate zones. The Equatorial Zone, The semi-arid zone, The Highland Tropical Zone, and The Subtropical Zone.

Brazil is dominated by the Amazon River, the Amazon Basin, the Andes Mountains, Guiana Highlands Brazilian Highlands (Plateau), and the Paraguay lowlands. Brazil ranks sixth in the mining production and the top leader of copper. They are also produces of 4 fuels, 45 industrial minerals, and 21 metals. Almost 45% of the primary energy is met by renewable resources.

Country Natural Resources and Population Overview Opportunities and

Challenges (Slide 2 of 2)

Net percentage of energy used in brazil was last measured at 7.71 in 2011, according to the world bank.

Since 1973 recycling, the procedure by which the products are manufactured and issues is very important when consumers decide to buy something.

The total population in Brazil was estimated at 204.5 million people in 2015. Brazil had a total birth rate of 14.72births/1000, life expectancy for a male was 71.4 years and

78.7 years for females, and 58.5% of older citizens and 34.2% of younger citizens work in the year 2014.

86% of the population lives in urban areas, while 14% of the population living in rural areas. In 2015, it has increased to 25 people per square kilometer. There are five key cities in Brazil. Brasilia (capital) has a population of 2.4 M, Sao Paulo's

population is 11.2 M, Rio de Janeiro has a population of 6.3 M, Belo Horizonte population is 1.4 M, and finally Manaus has a population of 1.7 M.

Country Cultural Dynamics(slide 1 of 2)

Family is a key factor in Brazilian culture

Average family size has decreased over the past ten years

In today’s times, men and women both work to support the family, but traditionally only one parent worked

Brazil is working to improve gender equality

The most predominant religion is Roman Catholic

Country Cultural Dynamics(slide 2 of 2)

One of Brazil’s biggest issues is it’s low literacy rate

Compared to other countries, Brazil has a poor public education system

Individualism and collectivism are both expressed in Brazilian culture

There are 5 social classes labeled A (the highest) to E (the lowest)

Brazil has rituals for different parts of a person’s life (i.e. funerals, women coming of age, etc.)

Country Political and Legal Overview- Opportunities and

ChallengesBrazil has a stable economy and political system

Federal Republic: made up of 26 states that each have their own legislature and governor

Brazil’s legislative system is known as the National Congress

Legal system is based on codes and legislation enacted by the federal legislature power and also states and municipalities

Country Political and Legal Overview Opportunities and Challenges (slide 2

of 2)

Brazil has 32 registered political parties but 5 of these

dominate

Brazil’s economy depends heavily on international trade

Brazil has intellectual property rights that are similar to the U.S.

This country is working to improve environmental issues

Country Communication and Transport Infrastructure- Strengths Brazil is considered one of the largest highway systems in the

world

Brazil has well developed air transport

Brazil has four different railway systemsBrazil is Well developed in telecommunications, particularly in

South-Central Brazil

Over 45% of Brazil’s population has internet access

Country Communication and Transport Infrastructure-

WeaknessesBrazil’s highways are deemed as “inadequate”

There is a lack of road growth while developing country growth

• Work was done to help this problem in order to prepare for 2014 FIFA World Cup and the 2016 Summer Olympic Games

The north and north-west parts of Brazil do not have well-developed telecommunications

Still a large part of the country that does not have internet access

Country Stage of Economic and Marketing Development (Slide 1 of

2)Brazil is a developing economy.

There is true potential in Brazil for it to continue to grow economically because of the country’s technology and fairly good infrastructure.

Brazil is classified as “upper middle income” by per capita GNI with 414,750 PPP dollars in 2013.

Brazil is one of the largest producers in manufacturing textiles, food products, steel and automobiles.

The country is now a sixty-three billion dollar industry and making nine and a half million garments a year.

Country Stage of Economic and Marketing Development (Slide 2 of

2)Brazil is in the manufacturing stage of the marketing process because it is a developing

economy in the mass production substage.

Also, Brazil is a big producer for raw materials and agricultural products, which is part of the first stage of the marketing process.

Marketing functions: Demand and Physical Distribution

Marketing institutions: Merchants, wholesalers, traders, and specialized institutions

Channel control: Producer

Primary orientation: Production and finance

Resources Employed: Labor, land, technology, transportation and capital

Country Key Trade Agreements and Trade Forecast (Slide 1 of 2)

The Cotton dispute by Brazil against the United States was brought to the WTO in 2005 and again in 2008.

U.S. agriculture programs were found to be inconsistent with the United States’ WTO commitments.

In 2014, Brazil and the United States made an agreement to end the dispute with provided countermeasures of the WTO arbitrators.

The United States has a great FTA agreement with Brazil now.

The U.S. goods and services trade with Brazil totaled an estimated $95.4 billion in 2015.

Exports totaled an estimated $59.5 billion; imports were $35.9 billion.

Brazil is currently the goods trade during 2015. 12th largest goods trading partner of the United States with $59 billion in total

Country Key Trade Agreements and Trade Forecast (Slide 2 of 2)

According to the Department of Commerce, U.S. exports of goods and services to Brazil supported an estimated 346,000 jobs in 2014.

The most important trade agreement is the World Trade Organization (WTO), which governed trade throughout many countries, including the U.S. and Brazil.

Both Brazil and the United States have been part of the WTO since it first began but have had many disputes together in the past.

The main issue with the WTO agreement is the prices of tariffs, which are sometimes too high for developing countries.

Forecasted increased trade if tariff prices are not high and the countries improve their trade relationship.

Product/Service Industries of Opportunity

The entry of automobile companies and car dealerships would fare well, due to the large amount of raw materials produced, such as iron and other metals.

Coffee industries would do well to invest in Brazil with the country’s significant contribution to coffee production.

Because of the vast manufacturing, products within the fashion industry are an opportunity of growth.