economic help 1

Country: Brazil

Venture 1: Ecological and Organic Produce

Venture 2: E-Commerce / Online shops

Notes: rise in popularity and demand for ecological products – healthy eating. Also, spike in online shopping in Brazil.

Marketing analyses Assignment. – I have attached the initial details of brazil at the bottom. The Assignment is to come up with 2 Marketing Analysis based on 2A and 2B. I  have also attached financial documents for reference.


2.A. Marketing analysis for E-commerce business based in Brazil ( Model)

2.B. Marketing analysis for Organic produce business in Brazil (Have our own farm and partner with local/regional organic produce farmers – Targeting upper/growing middle class in Brazil, will be a Premiere Farmers Market)

Description: For For-Profit Business: Target Market; Potential Revenues; access and approach to this

market; and profile of a customer…these are merely minimum requirements. Have you

spoken to in-country experts? Will you need partner(s)?

Grow and sell produce, as well as host premier farmers market events.


Practicum #1 – Brazil

Executive Summary

The following practicum provides pertinent information about the country of Brazil including, the country’s history, language, size, GDP, population, and type of government. As a country, Brazil has made large strides in becoming a competitive economic player in the world of global business. The following information should help determine whether or not Brazil would provide the type of business venture our investor is searching for.


Portuguese settlers founded Brazil, located in Eastern South America bordering the Atlantic Ocean, in 1500. Pedro Cabral, a Portuguese settler, arrived in Brazil at the beginning of the Colonial era. Upon arrival, Cabral discovered that the country was inhabited by approximately seven million Native Americans (Geographia, 2016). “Other Portuguese explorers followed Cabral, in search of valuable goods for European trade but also for unsettled land and the opportunity to escape poverty in Portugal itself” (Geographia, 2016). The first natural product of Brazil, and the reason for its name, was red dye that came from the Brazilwood tree. Later on, sugar became a valuable commodity. This led to the importation of African slaves. As a result, the population frequently intermarried – Portuguese, Native Americans, and African slaves; therefore, “Brazil’s population is intermingled to a degree that is unseen elsewhere. Most Brazilians possess some combination of European, African, Amerindian, Asian, and Middle Eastern lineage, and this multiplicity of cultural legacies is a notable feature of current Brazilian culture” (Geographia, 2016). Following the success of sugar, coffee became Brazil’s lucrative product. During the 19th century, “the boom in coffee production brought a wave of almost one million European immigrants, mostly Italians, and also brought about the Brazilian republic” (Geographia, 2016). Following a military coup, coffee planters governed the country until the worldwide depression. In 1989, Brazil conducted its first democratic election where Fernando Collor de Mello was elected. Mello was removed from office due to corruption.


Brazil’s official and most widely known language is Portuguese. In addition to Portuguese, the following languages are also commonly spoken in Brazil: Spanish (border areas and schools), German, Italian, Japanese, English, and a large number of minor Amerindian languages (CIA, 2016).

Geography, Size, & Climate

The country of Brazil is slightly smaller than the total size of the United States. Brazil’s total size measures 8,515,770 sq km (CIA, 2016). The country borders several other South American countries, including Argentina 1,263 km, Bolivia 3,403 km, Colombia 1,790 km, French Guiana 649 km, Guyana 1,308 km, Paraguay 1,371 km, Peru 2,659 km, Suriname 515 km, Uruguay 1,050 km, Venezuela 2,137 km (CIA, 2016). The country is mostly “mostly flat to rolling lowlands in north; some plains, hills, mountains, and narrow coastal belt” (CIA, 2016). Some of the notable natural resources of Brazil include, “bauxite, gold, iron ore, manganese, nickel, phosphates, platinum, tin, rare earth elements, uranium, petroleum, hydropower, and timber” (CIA, 2016). The land itself is currently facing environmental issues, such as deforestation in Amazon Basin destroys the habitat and endangers a multitude of plant and animal species indigenous to the area; there is a lucrative illegal wildlife trade; air and water pollution in Rio de Janeiro, Sao Paulo, and several other large cities; land degradation and water pollution caused by improper mining activities; wetland degradation; and, lastly, severe oil spills (CIA, 2016).

Gross Domestic Product (GDP)

“Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, and a rapidly expanding middle class, Brazil’s economy outweighs that of all other South American countries, and Brazil is expanding its presence in world markets” (CIA, 2016). As of 2015 data, Brazil’s Gross Domestic Product is an estimated $3.192 trillion. “Brazil seeks to strengthen its workforce and its economy over the long run by imposing local content and technology transfer requirements on foreign businesses, by investing in education through social programs such as Bolsa Familia and the Brazil Science Mobility Program, and by investing in research in the areas of space, nanotechnology, healthcare, and energy” (CIA, 2016).


As of July 2015, Brazil has an estimated population of 204,259,812 people, at a population density of 23.69 persons per square kilometer (CIA, 2016). Per the World Bank, 14.83% of Brazil’s population is rural and 85.17% is urban. 24.08% of the population is under the age of fifteen, and 7.53% of the population is over the age of 65. Brazil’s population grew by 0.86% in 2007. Net immigration to Brazil in 2012 was -190,000 people (Quandl, 2016).


The country’s official name is Federative Republic of Brazil. Brazil is a presidential republic. The country is made up of 26 states and 1 federal district. The country declared Independence from Portugal on September 7, 1822. The country’s legal system is run by Civil Law. The current acting President is Michel Miguel Elias TEMER Lulia after the impeachment of President Dilma ROUSSEFF in May of this year.

Practicum 2 – Brazil

Executive Summary

The following practica provides research and information regarding Brazil’s economic and social climates; Brazilian NGO’s; world organization participation and trade; Brazilian multinationals; stock market and banks; and, lastly, country infrastructure. The following information will serve as supplemental research to present to investor.

Economic Climate

According to Clemente et al (nd), Brazil, Russia, India, and China are emerging countries that constitute the group named BRICs, the world’s fastest growing economies (p. 221). In spite of major growth over the past decade in which Brazil progressed economically; the country is currently facing a deep recession. According to the World Bank (2016), “Brazil’s economic and social progress between 2003 and 2014 lifted 29 million people out of poverty and inequality dropped significantly” (para 1). However, a recent onset of economic decline has left consumers and investors less confident. In order to pull itself out of the economic recession, the Brazilian government has decided to reform several areas of spending. In light of the recession, “the government has proposed a set of macroeconomic adjustment measures and is setting the stage for structural reforms. In early 2015, the government began a macroeconomic adjustment process based on an ambitious fiscal consolidation plan” (World Bank, 2016, para 4).

Socio-Political Climate

Aside from economic decline, Brazil has remained an international leader and advocate for climate change awareness and environmental reform. According to World Bank (2016), “Brazil played a key role in formulating the climate framework for the 2015 COP 21, the most recent round of international climate negotiations” (para 11). Major progress in the protection and preservation of the rainforest and other sensitive biomes have occurred in recent years. According to World Bank (2016), Brazil “still faces major development challenges – especially in finding ways to combine the benefits of agricultural growth, environmental protection and sustainable development” (para 10).

Brazilian Non-Governmental Organizations

Brazil has various types of Non-Governmental Organizations throughout the country. Major Brazilian NGO’s are concerned with the following major areas: public health, education, youth, environmental sustainability, and equality.

A major public health NGO is Associação Saúde da Família (ASF). “With almost 6,000 staff, today ASF is working for the city of São Paulo to implement one of Brazil’s most important health programs, which focuses on prevention as well as care and uses family health teams to reach millions of Brazilians across the country” (FHI, 2016, para 7).

An example of a major NGO focused on education is Vaga Lume; an organization that

promotes access to books and reading in 149 rural communities of 23 municipalities in the Amazon, by creating community libraries and training volunteers as reading mediators, also encouraging the community management of the library, which gives long-term sustainability to the project (Global Giving, 2016, para 3).

World Organizations

A major world organization for Brazil is UNESCO. This organization is known as the ‘intellectual’ agency of the United Nations. Upon its inception in 1945, UNESCO has strived to “build networks among nations that enable…[intellectual] solidarity” (UNESCO, 2016, para 1). The following is a list of regional organizations that Brazil participates in (not a comprehensive list): Organization of American States (OAS); Summit of the Americas; Free Trade Area of the Americas (FTAA); Inter-American Development Bank (IDB); and Union of South American Nations (UNASUR). The following is a list of world organizations that Brazil participates in (not a comprehensive list): Organization for Economic Co-operation and Development (OECD); International Labor Organization (ILO); Food and Agriculture Organization of the United Nations (FAO); United Nations Development Program (UNDP); and United Nations Environment Program (UNEP).

Trading Partners

Brazil is the 23rd largest export economy in the world and the 32nd most complex economy according to the Economic Complexity Index (ECI) (OEC, 2016, para 1). In 2014, Brazil had a positive trade balance of $124M. According to Heritage (2016), the average tariff rate in Brazil is 7.8 percent. Interestingly, the import of used consumer goods like cars and clothing is prohibited. Rather, Government procurement policies favor domestic companies. In addition, foreign investment in agricultural land is restricted. Brazil has the region’s largest financial services market. The top three trading partners for Brazil are the United States, Argentina, and China. Most of their imports come from these three countries.


According to a report from the Columbia Center on Sustainable Investment (2016),

In 2014, the top 20 Brazilian multinational enterprises altogether had foreign assets of US$ 120,672 million, foreign revenue (including exports) of US$ 113,927 million and 201,343 foreign employees (excluding outsourced, temporary and seasonal employees) (para 2).

The top five multinational corporations account for 88% of the total foreign assets of the top 20 firms in Brazil. Of the top ten Brazilian multinational firms, four were from the food manufacturing industry, and three were from the extractive industries such as mining, quarrying, oil and gas (Columbia Center, 2016, para 3). The top five multinational corporations are Vale (mining), Gerdau (metal manufacturing), Petrobras (Oil and gas extraction), JBS (food manufacturing), and BRF SA (food manufacturing).

Stock Market

In recent years, the capital market has become a key player in the country’s economic development because “it constitutes an efficient mechanism for allocating resources” (Clemente et al, nd, p. 225). Since 2003, the Brazilian stock market has seen tremendous growth due to economic and political stability. The CVM is an agency of the Brazilian government that serves as the primary regulator of the country’s stock market; this agency ensures that “all trades are fair, and that no price manipulation or insider trading occurs” (Clemente et al, nd, p.227).

National Banks

Unlike other countries, Brazil has one national bank that has the highest monetary authority. The Central Bank of Brazil governs both money and economics in Brazil. The Central Bank of Brazil was established only 40 years ago by the Bureau of Currency and Credit, the Bank of Brazil, and the National Treasury. According to Heritage (2016), “public banks now account for over 50 percent of loans to the private sector” (para 4).


Roads are the primary means of transportation in Brazil. “The Brazilian highway system is one of the largest in the world, but is known for being inadequate, not catering to the ever-increasing needs of the cars” (Brazil, 2016, para 2). There are four main rail gauges in the country and they are controlled by private organizations. The main power source is generated from hydroelectric plants. “These plants produce power by harnessing the gravitational force of flowing or falling water” (Brazil, 2016, para 4). Lastly, the telecommunications system in Brazil is highly developed; it includes landlines, mobile services, television broadcasting, radio broadcasting, and computer/internet access.

Practicum 3 – Brazil

Executive Summary:

The following practica investigates the business climate toward globalization in Brazil. It includes details regarding trade barriers, protectionism, foreign direct investment, and potential alliances.

Business Climate – Globalization

As the largest and most populous country in South America, with the 9th largest economy in the world, Brazil’s business climate towards globalization is open, growing, and positive. Brazil has one of the strongest economies in the South American region and successfully generates the majority of the country’s GDP domestically.  Research indicates that Brazilian businesses are currently trending toward the rise of emerging-market multinationals. In addition, the country hosted the 2014 World Cup and is scheduled to host the 2016 World Olympics. This has generated a positive business climate towards globalization in many ways. Foreign investors are attracted to the market opportunities related to these global events. More importantly, bi-products of globalization have been faster economic growth in the country, reduced poverty, increased employment rates, rise in living standards, and growth in output.

Trade Barriers –

Although the country has experienced much economic success domestically, research indicates that Brazil has an ‘unusually’ closed economy. This is determined by the calculation of exports and imports, which equals only 27.6 percent of the country’s GDP (Canuto et al., 2015, para 1). To provide context,the average trade-to-GDP ratio is 55 per cent. The reason for this low percentage is due to the amount, or lack thereof, of Brazilian businesses that export. The barrier that decreases the opportunities for Brazilian companies to export is the poor integration into transnational value chains. The reason for this is due to the high share of domestic value added to Brazilian exports. In addition to exports, there is also a growing need of imports, specifically from the United States. Also, while the country continues to experience immense growth, “industries need inputs and end up importing too” (Novais, 2011, para 2). Due to high tax burden and a professional shortage, hiring costs increase.

Protectionism –

To deal with some of these issues, the government of Brazil proposes a protectionist plan “that would enhance the competitiveness of the national industry under the slogan ‘innovate to compete’ (Novais, 2011, para 5). The protectionist plan includes the following: tax exemptions from exports; the summit of protectionism to establish a 25 percent margin of preference for national goods and services; increased investigation of anti-dumping practices; modernization of the National Institute of Metrology Standardization and Industrial Quality to include airports and ports to verify the quality of imported goods; exemption of economic sectors “sensible to exchange and international competition (clothing, shoes, furniture and software) from the INSS tax rate of 20%” (Novais, 2011, para 5).

Foreign Direct Investment –

Foreign direct investment increased by 3917.30 USD Million in June of 2016 (Trading Economics, 2016). This is approximately 400.00 USD over the average between 1995 and 2016. Over the last thirty years, FDI has played a large role in the industrialization of Brazil. Investors are especially attracted to the large domestic market and government policies.

Potential Alliances –

An alliance between Brazil and China has been strongly developed over recent years. A large growth in trade occurred between China and Latin America between 2000 and 2012; an increase of approximately 2550 percent, from $10 billion to $255.5 billion. Of that, trade with Brazil made up $77 billion (a leap from $6.5 billion in 2003). China is one of Brazil’s largest export destinations as well as Brazil’s most important source of imports (World Policy, 2013). Chinese investments have powerfully changed the lives of Brazil’s people – China assisted Brazil’s former president, Luiz Inácio Lula da Silva, promote the ‘social inclusion of almost 40 million Brazilians who used to live without electricity, water, and food’ (World Policy, 2013). The Brazil China Strategic and Commercial Alliance will help support the Brazilian stimulus package for infrastructure construction, which includes investment of over 7$4 billion in railways and highways, $26 billion in ports, and more than $11 billion in airports (World Policy, 2013).

Practicum #4 – Brazil

Executive Summary

The following practica describes elements of Brazil according to their national, local news as well as other sources. This practica should be used to supplement previous information and assist our potential investor in understanding why Brazil presents a great opportunity for the potential venture. In addition, I present three recommendations for further investigation. These recommendations highlight market opportunities and market entry strategies.

Market Overview

Brazil’s population is the fifth largest in the world at 202 million. Additionally, Brazil has the highest per capita income of the BRICS, as over half the country’s population is considered middle class. Needless to say, Brazil is a leader among the emerging markets. During the past two decades, Brazil has succeeded at developing macroeconomic policies that control inflation and promote economic growth. Lastly, Brazil’s GDP of 2.3 trillion ranks the country as the world’s seventh largest economy. The Brazilian Government continues to focus on establishing relationships with international and U.S. businesses while prioritizing macroeconomic stability. According to local news, Brazil leads the ranking in number of business travelers and events in Latin America, according to the International Congress and Convention Association. More than 146,000 foreign visitors came to the country in 2015 to participate in 292 international events – a 10% increase over the 133,000 that came to the country in the previous year (The Brasilians, 2016). With the conclusion of the 2016 Summer Olympics, hosted in Rio de Janeiro, Brazil is progressively being noticed as a country for international events, trade, and investment.

Market Opportunities

Over the past year, the United States and Brazil have joined forces to grow trade and investment through alliance and partnership. The Government of Brazil (GOB) is the nation’s largest buyer of goods and services. Therefore, investors or businesses attempting to emerge (export) in the Brazilian market must have a strong presence in the country to compete against domestic businesses. The aforementioned information about Brazil’s economic strength indicates that the country is a smart choice for exports.  Additional areas of opportunity in Brazil for investment include agricultural equipment, building and construction, aerospace and aviation, safety and security devices, IT, oil and gas, medical equipment, sporting goods, environmental technologies, retail, and transportation (Export, 2016).

Another market opportunity in Brazil is franchising. The Brazilian franchise sector is one of the world’s largest and most sophisticated markets. This sector is one of their economy’s main growth engines. In 2015, the Brazilian franchise sector grew by 8.3 percent, and total sector revenue was about R$ 139.593 billion (US$ 35 billion) (Export, 2016). Another area of opportunity is e-commerce. “Mobility continues to be one of the strongest trends for 2016, contributing to the Mobile Commerce rise” (Export, 2016, para 12). The U.S. has taken advantage of the overwhelming online Brazilian market and consumer base. In addition, travel and tourism services purchased digitally within Brazil play an important role in the growth of e-commerce.

Market Entry Strategy

Based on my research, my recommendation to potential investors is to establish strong connections and relationships with the country – “success in Brazil’s business culture relies heavily upon the development of strong personal relationships, the keystone of productive business partnerships” (Export, 2016, para 6). I recommend having local presence in the country and frequently visiting to engage in face-to-face meetings. Another strategy is to employ a qualified representative or distributor when developing new business in the Brazilian market. Lastly, given the market size and potential of Brazil, potential retailers are encouraged to explore strategies that include a local presence in the market.

Practicum #5

Executive Summary

The following practica includes a SWOT analysis on Brazil. I will discuss the country’s strengths, weanknesses, opportunities, and threats. In addition, the following provides the best case recommendations for establishing a small venture in Brazil. The following information should be used in conjunction with the recommendations provided in Practicum #4.


The first strength of Brazil is the attention the country has recently received over the past two years due to the international events that have taken place; most notably, the 2014 World Cup and the 2016 World Olympics. These events have not only generated attention, but economic opportunity. Another strength is the progress and performance of Brazil’s stock market. The Bovespa Index is up 48.8% since the oil rally earlier this year (CNN, 2016). Due to recent growth of the country’s GDP over the past decade, Brazil’s middle class has grown; therefore, the consumption of more expensive products has increased. This is a strength for the country and notably a strength for potential investors since there is purchasing power and increased consumerism in the country. My first recommendation, based on the country’s emerging strength, is investment in organic produce. Brazil is the tenth largest country in the world where the majority of land is used for organic culture with over 90,000 farmers.  


Although there have been significant improvements in the Brazilian Stock Market, inflation rates are increasingly high in the country. Despite high interest rates of 14.25%, inflation is well over target and currently around 9.2%. It is one of the worst inflation levels in the big emerging markets (CNN, 2016). Another weakness is the length of time it takes to meet taxation expectations in Brazil compared to other countries (Financial Post, 2016). Finally, a very important weakness to consider prior to investing is the political turmoil that exists throughout the country. Political uncertainty in the energy sector “means that investors need to recognize that the country’s government can directly impact stock prices” (Financial Post, 2016).


The first major opportunity identified in Brazil is the growing organic food market. According to ITC (2015), the market for natural products in Brazil is becoming an “expanding part of the market and even the larger supermarket changes are giving over ever larger shelf-space to natural produce in answer to consumer demand” (para 5). The country experienced incredible growth between 2007 and 2013 where revenues grew from BRL 118M to 700M. As stated earlier, the middle class has grown; therefore, there is more of a market for expensive organic food products. As of 2013, Brazil is ranked as one of the biggest producers of organic food in the world, according to a survey by the Research Institute of Organic Culture and the International Federation of Organic Agriculture Movements (Bruha, 2015). Brazil has millions of hectares of land assigned to growing organic products. According to Bruha (2015), the following states concentrate more than 70% of the Brazilian production of organic food:

·  Paraná

·  São Paulo

·  Rio Grande do Sul

·  Minas Gerais

·  Espírito Santo

Lastly, the Ministry of Agricultural Development has issued a Plan of Agroecology and Organic Production. This plan offers incentives to family farmers and will grant credit lines making it easier for organic producers to certify their products (Bruha, 2015). Lastly, Apex-Brasil, the Brazilian Trade and Investment Promotion Agency, is a government agency responsible for promoting Brazilian products and services abroad and attracting foreign investment to strategic sectors of the Brazilian economy (Bruha, 2015). The second major opportunity in the country is in e-commerce. E-commerce has grown 25% over recent years having started to overcome the initial consumer resistance (ITC, 2015). Brazilian consumers are becoming more comfortable with shopping online. Online interests include fashion, cosmetics and perfumes, domestic appliances, etc. There has been substantial growth in profitability in these markets.


Although Brazil has a strong, growing middle class that fuels a large domestic demand, which separates it from some of the other oft-discussed emerging markets, there is an “imbalance of economic distribution in cities” (Wade, 2013, para 6). In addition, Wade (2013) describes the threats of liabilities in Brazil.

Brazil has strict liability rules that can make it difficult to deal with issues like a defective products and employment practices. There is also a short statute of limitations compared to the rest of South America, which can make it tricky to find time to deal with issues that must be addressed quickly (Wade, 2013, para 8).

Recommendations to Investor

As described above, Brazil offers major opportunities for investment. Two of the top opportunities are in the organic produce markets and e-commerce. My recommendations for potential investments are to focus on the organic food markets, organic farming, as well as exports of organic products to other counties. Another recommendation is to expand business into online, e-commerce markets. Brazil has a growing consumer population that is growing accustomed and comfortable with online shopping. A potential business venture is to marry the markets – organic products and e-commerce.


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The Brasilians. (2016). Brazil: a business destination. Accessed August 23, 2016 from,

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Clemente, Ademir, Taffarel, Marines, and Espejo, R

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