Business in Brazil

The Competitiveness of Brazil

The World Economic Forum states that Brazil was the top country in upward evolution of competitiveness in 2009. This means it went up eight positions among other countries. It also overcame Russia for the first time and partly closed the competitiveness gap with India and China among the BRIC economies. Important measures have been taken since the 1990s toward fiscal sustainability. There have also been steps taken to liberalize and open the economy. This has greatly increased the country’s competitiveness, which has allowed for a better chance of private-sector development.

The Brazilian Agribusiness

Brazil has a wide array of climates within its country. The country has consistent rainfall, plentiful solar energy and approximately 13% of the drinking water available in the world. Brazil still has 90 million hectares of fertile land. A hectare is a metric unit of square measure that is equal to 100 acres. It is estimated that in 10 years, Brazil will be the most agricultural country on the planet.

Brazil has always been widely acknowledged for its role regarding the export of commodities. This is because they are the primary exporter of coffee, soy, meat and orange juice. The development of new technologies in the country has caused Brazil to have what is thought of as the strongest economy in Latin America.

As of today, Brazil now has more refined exports including airplanes and cars. This change in the structure of the economy symbolizes a shift from a more colonial world into a more technological one. In spite of this, these changes have also brought about merging of the two sectors. The development in technology has helped the agribusiness in Brazil.

As agribusiness strengthens, new demands arise. This happens because it is necessary for them to maintain and even exceed the high level of production that is occurring. Despite its challenges, logistics and the financial market are beginning to see the agribusiness as lucrative and promising.

Mergers & Acquisitions

Between 1993 and 2010, 7.012 mergers & acquisitions (with an entire known value of $707 billion USD) that involve Brazilian firms had been announced. Mergers and acquisitions (known as M&A) refer to corporate strategy, corporate finance, and management. This deals with the buying, selling, dividing and combining of different companies that can help an enterprise grow quickly. This being growth in its sector or location of origin or a new field or new location. 2010 reached a new record with a value of $115 billion in transactions. The largest transaction that has involved Brazilian companies was when Cia Vale do Rio Doce acquired Inco in a tender offer that was $18.9 billion.

The Right Dialect

Finally, don't forget that the language of choice in Brazil is the Brazilian Portuguese.






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