A GLOBAL STUDY AND REPORT ON POLITICAL ENVIRONMENT IN BRAZIL

SUBMITTED TO:PROF. NIDHI YADAV

SUBMITTED BY:DHARMESH J. AHIR (107160592027) ASUTOSH A. PATEL (107160592090) HEMAL J. BAROT (107160592118) PRATIK R. THAKER (107160592038) RASHMI MAV (107160592018) MONALI PANDEY (107160592094)

POLITICAL ENVIRONMENT OF BRAZIL

Demographic Profile of the Country- BRAZIL

Total Population: 198,739,269 (July 2009 est.), ranked # 5 behind the United States (307,212,123) and Indonesia (240,271,522). Age Profile: 0-14 years: 26.7%, 15-64 years: 66.8%, 65 years and over: 6.4% Median age is 28.6, Average life expectancy is 71.99 years, ranked #123 in world 49% Male & 51 % Female Gross Domestic Product Contribution by Economic Sector 67.7% Services, 25.8% Industry, 6.5% Agriculture (2009 est.) Industries: textiles, shoes, chemicals, cement, lumber, iron ore, tin, steel, aircraft, motor vehicles and parts, other machinery and equipment

Cont
Languages: Portuguese (official and most widely spoken language); note less common languages include Spanish (border areas and schools), German, Italian, Japanese, English, and a large number of minor Amerindian languages

Religions: Roman Catholic (nominal) 73.6%, Protestant 15.4%, Spiritualist 1.3%, Bantu/voodoo 0.3%, other 1.8%, unspecified 0.2%, none 7.4% (2000 census) Ethnic groups: white 53.7%, mulatto (mixed white and black) 38.5%, black 6.2%, other (includes Japanese, Arab, Amerindian) 0.9%, unspecified 0.7% (2000 census) School life expectancy (primary to tertiary education): 14 years

Cabinet of Brazil:Office Name

President

Dilma Rousseff

Vice President

Michel Temer

Ministry of Agriculture, livestock & supply

Mender Ribeiro

Minister of Industry and trade

Fernando Pimentel

Minister of Finance

Guido Mantega

Minister of Environment

Izabella Teixeira

Minister of Labor and Employee

Carlos Lupi

The Political Environment of Brazil: The politics of Brazil take place in a agenda of a federal presidential demonstrative democratic republic, whereby the President is both head of state and head of government, and of a multi-party system. The political and structural organization of Brazil comprises the federal government, the states, the federal district and the municipalities. The federal government workouts control over the central government and is divided into three independent branches: executive, legislative and judicial. Executive power is exercised by the Chief, advised by a cabinet. Legislative power is vested upon the National Congress, a two-chamber legislature comprising the Federal Senate and the Chamber of Deputies. Judicial power is exercised by the judiciary, consisting of the Supreme Federal Court, the Superior Court of Justice and other Superior Courts, the National Justice Council and the regional federal courts.

PESTEL Analysis
Political Type: Federative republic (with 26 states and a federal district) Independence: September 7, 1822. Constitution: Promulgated October 5, 1988. Branches: Executivepresident (chief of state and head of government popularly elected to no more than two 4-year terms). LegislativeSenate (81 members popularly elected to staggered 8year terms), Chamber of Deputies (513 members popularly elected to 4-year terms). JudicialSupreme Federal Tribunal (11 lifetime positions appointed by the president). Political parties: Workers Party (PT-center-left), Democrats (DEMcenter-right), Brazilian Democratic Movement Party (PMDB-center) , Brazilian Social Democratic Party (PSDB-center-left) , Green Party (PV-left) , Socialism and Freedom Party (Psol-left) , Brazilian Labor Party (PTB-center-right) , Brazilian Socialist Party (PSB-left) ,Democratic Labor Party (PDT-left) ,Communist Party of Brazil (PCdoB-left).

Economy
GDP (official exchange rate): $2.023 trillion GDP (purchasing power parity): $2.182 trillion Annual real growth (2010 est.): 7.6%. Per capita GDP (official exchange rate): $11,220 Per capita GDP (purchasing power parity): $11,514 Natural resources: Iron ore, manganese, bauxite, nickel, uranium, gemstones, oil, wood, and aluminum. Brazil has 14% of the worlds renewable fresh water. Agriculture (5.6% of GDP): Productscoffee, soybeans, sugarcane, cocoa, rice, livestock, corn, oranges, cotton, wheat, and tobacco. Industry (27.8% of GDP): Typessteel, commercial aircraft, chemicals, petrochemicals, footwear, machinery, motors, vehicles, auto parts, consumer durables, cement, and lumber. Services (66.6% of GDP): Typesmail, telecommunications, banking, energy, commerce, and computing. Trade: Trade balance (2009)$ 25.3 billion surplus. Exports$153.0 billion. Major marketsChina 13.20%, United States 10.20%, Argentina 8.36%. Imports$127.7 billion. Major suppliersUnited States 15.69%, China 12.46%, and Argentina 8.84%

Social
Population: 190,732,694 (largest population in Latin America and ranks fifth in the world) Annual growth rate: 1.17%. Ethnic groups: African, Portuguese, Italian, German, Spanish, Japanese, Indigenous peoples, and people of Middle Eastern descent. Religion: Roman Catholic (74%). Language: Portuguese (Brazil is the only Portuguese-speaking nation in the Americas) Education: Literacy88% of adult population. Health: Infant mortality rate21.86/1,000. Life expectancy72.6 years in 2010. Work force (2009 est.): 101.7 million.

Environmental
Brazil is the worlds fifth largest country with a total area of 8.5 million square kilometres. It benefits from a good river system and 7.500 kilometres of coastline (1). The country has overflowing reserves of natural resources such as iron, copper, nickel, manganese or tin. In spite of having an estimated gold reserve of 2,000 tones the country accounts only for 2.5% of the global production and many regions are still unfamiliar, which make Brazil an attractive location for mine development and investment opportunity (1).

Technological
Brazil is the leader in science and technology in South America as well as one of the global leaders in fields such as biofuels and deep-water oil exploration (7). The Brazilian government tries to develop and support modernization in business, for example in 2004 the Innovation Law was passed, is meant to provide incentives to increase innovative activities, facilitate scientific and technological research by private companies and encourage collaboration between public and private sector (5).

Legal
Brazil has an established Civil Law system based on codification and statutory legislation. The country ranks as one of the worlds leading jurisdictions for mining investment but because of its complex federal legal structure, the regulation in this area is bureaucratic, inconsistent and lacks belief. The prospecting and mining of mineral resources may be carried out by Brazilian citizens or by companies duly incorporated in Brazil holding an authorization or grant by the Republic of Brazil (10). Mineral resources are defined and mining rights guaranteed under the Brazils Federal Constitution and Federal Mining Code (8).

Overview Different economic sectors of Brazil

Brazil's major economic sectors are all well developed. The agricultural sector of Brazil represented a larger percentage of the gross domestic product than industry until 1945. At that time, the government supported industrialization and direct investment in industry, with subsidies and trade protection for Brazilian industrial products. Industry was almost 3 times more valuable than agriculture as a percentage of gross domestic product by 1999. In the agriculture sector, Brazil is one of the world's largest producers of soybeans and coffee. International competitors watch Brazil's climate to determine the success of the soybean and coffee season, setting international prices based on Brazil's yield. The agriculture sector represented 8.4 percent of the gross domestic product in 1999 and employed 31 percent of the workforce.

Commercial Relations IndiaBrazil

Top ten items of Brazilian Exports to India

Top Ten Items of Indian Exports to Brazil

India Brazil bilateral trade 2007-2009 (US$ million)

Indias Exports Indias Imports of Balance Trade for trade Total % Growth India 2007 2,169.27 957.85 1,211.42 3,127.13 29.60

2008

3,564.31

1,102.34

2,461.96

4,666.65

49.23

2009

2,190.90

3,415.04

1,224.14

5,605.94

20.12

2010 (January July)

2,098.56

2,223.19

124.63

4,321.75

Major Investment from India to Brazi

Name of the companies: Oil and Natural Gas Commission Videsh Limited (OVL) Cellopharm Glenmark Vijai Electricals Ranbaxy Tata Consultancy Services Satyam Computers WIPRO Mahindras & Mahindras Pidlite Praj Industries Claris Lifesciences BESCO Ltd

Major Investment from Brazil to India

Name of the companies: Gerdau Marcopolo Stefanini WEG

Automobile Industry in Brazil

Automobile Production
Automobile production [27][28]

Yea r

1960

1970

1980

1990

2000

2004

2005

2007

Uni ts millions) (in 0.042 0.306 0.933 0.663 1.36 1.86 2.50 2.61

Joint ventures
Tata Motors has formed a 51:49 joint venture in bus body building with Marcopolo S.A. of Brazil. This joint venture is to manufacture and assemble fully built buses and coaches targeted at developing mass rapid transportation systems. The joint venture will absorb technology and expertise in chassis and aggregates from Tata Motors, and Marcopolo will provide know-how in processes and systems for bodybuilding and bus body design. Tata and Marcopolo have launched a low-floor city bus which is widely used by Chennai, Coimbatore, Delhi, Mumbai, Lucknow, Pune, Kochin, Trivandrum and Bengaluru transport corporations. Its manufacturing facility is based in Dharwad.

Sales data of Brazil Auto Industry:Rank 1 2 3 4 5 6 7 8 9 Brand Fiat VW GM Ford Renault Honda Hyundai Toyota Peugeot Sales 760,000 697,000 658,000 336,000 160,000 126,000 106,000 100,000 90,000 Share I 22.8% 20.9% 19.8% 10.1% 4.8% 3.8% 3.2% 3.0% 2.7%

10
11 12 13 14

Citroen
Kia Mitsubishi Nissan Mercedes

84,000
54,000 45,000 36,000 13,000

2.5%
1.6% 1.3% 1.1% 0.4%

15
16 17 18 19

BMW
Hafei Chery LandRover Suzuki

8,500
8,200 7,000 5,200 4,600

0.3%
0.2% 0.2% 0.2% 0.1%

20

Chrysler

4,500

0.1%

Summary
POTENTIAL IN BRAZIL: Projected population for the year 2015 at 201,970,000 that provides ample of opportunity In Brazil 65% of imported wine drinker drink red wine atleast once per month Brazil is a largest econmy in South America Brazil is among the fifteen largest economies in the world. Brazil is abundant in natural and human resources

TRADE BARRIERS
Choices are limited, transport and storage are less than ideal and service and expertise leaves a lot to be desired. Macroeconomic risks still exists in Brazil The continuous growth of Brazilian economy is not definite The cost of establishing a position in the market are very high. Brazilian bureaucracy Language and cultural barriers.

Reasons To Do Business In Brazil

1.Brazil is the largest economy in South America 2.Brazil is amongst the fifteen largest economies in the world 3.Brazil is abundant in natural and human resources 4.Brazil is open for foreign competition 5.Brazil has a stable democratic government 6.Brazil has an important consumer market.

THANK YOU