Destination Recent Development for Study Trip - Essay Example

?Destination Recent Development for Study Trip Table of Contents Introduction 3 International business in Brazil 3 Development in economics 4 Development in commercial expansion and organisational growth 5 Conclusion 6 References 8 Bibliography 10 Introduction Brazil is among the fastest growing economies of the world. In 2009 it was also one of the top most countries in terms of competitiveness. Brazil has various economic organisations such as the Unasul, Mercosul, WTO and the Cairns group. By shifting its debt burden to the domestically held institutions, Brazil has been successful in culminating the dip which it had been facing since 2003 in various sectors. As a result Brazil has been ranked the best creditor by agencies. The Brazilian economy together with China, India and Russia forms the BRIC nations, which is predicted by the Goldman Sachs to the global powers by 2050. Since 1990, Brazil had taken many elusive steps to go for fiscal sustainability (Central Intelligence Agency, no date). The Brazilian summit for investment plans is the biggest gathering that takes place in the country. Even after been faced by recession twice, Brazil came up as emerging markets to smooth the recovery. However, the Brazilian economy faces inflation at the rate of 6.4%, which leads to an over valuation of its currency (Domm, 2011). Brazil encourages various foreign investments and is also the major recipient of foreign direct investment. Brazil’s growth potential and high rate of interest makes it an attractive destination for the investors (Central Intelligence Agency, no date). Brazil has many advanced sectors for industrialisation. It has developed in industries such as cement, shoes, manufacturing, aircraft and consumer durables. It also has many sophisticated industries including the banking sector, telecommunication, energy and the computing services. Brazil is also a leader in terms of developments in the fields of science and technology. The Brazilian government is keen to develop environment that encourages technological cooperation, innovative skills in order to foster the pace of economic growth. Brazil’s trade policies make it a major player in the field of business interactions (Trade documents systems). It is however believed that despite various advantages that the economy is facing at the recent time, still a careful evaluation is required in order to enhance its growth potentials in the future. International business in Brazil International business describes the overall business transaction occurring between two nations. The objective of every international business transaction is to increase the sales and reduce the amount of risk. BP is reported to increase its business with Brazil in order to produce ethanol from sugarcanes. The company also wants to increase it’s the share in the Bio fuel company in Brazil which is named as Tropical BIO Energia (BP global, 2011). In order to strengthen the countries business relation with the immigrants, the “Chattanooga area chamber of commerce international business council” is supposed to plan a meeting on 22nd of September (The Chattanooga.com, 2011). Following the regime of globalisation and privatisation, Brazil has been successful in encouraging inflows of private investment in many sectors. In terms of internet development, Brazil is among the most promising nations. Sale of E commerce has doubled over the years. The electronic business sales have also increased in recent times. The mobile phone company in Brazil has expanded too over several years. As per the reports of National telecommunication Agency, a tremendous growth in the data market had taken place. The Anatel statistics reveals that the telecom market plays an important role in increasing the revenue of the nation (The economist, 2011). Recently there has been an agreement between Brazil and America to expand the mainstream business in telecommunications such as the mobile and online business. Previously the combined ventures between the nations have helped in expanding business in the following companies such as Citysearch, Live pictures, LuckySurf, Future Labs, Auto Bye Tel, Inter Con Systems and Vicinity (Brazil America Ventures, 2011). However it is an important fact that business in Brazil cannot expand without a sound business agenda. Brazil faces an enormous amount of exports from Australia. The Brazilian market encourages the development for medium term industries by enhancing the localised products efficiency. One important feature of the Brazilian business strategy is to use the trade conferences as well as the exhibitions, to showcase its prospective business plans to the world. It has been found that in order to increase the business relations with Brazil a country has to come over the legal and administrative hassles in the country (Doing Business in Brazil, no date). Development in economics Brazilian economy had been experiencing growth due its developed export sector. State also played an important role in enhancing the growth rate (Economic freedom, 2011). Brazil’s committee of monetary policy had decided to lower the benchmark rate of interest by half percentage so that it comes down to 12%. There are also discussions to curtail the rate of inflation in order to enhance the development prospects of the country. Revision of the fiscal policies and tax rates are also on the talks. (The Economist, 2011). Loosening of the monetary policy had a worsening impact on the country’s economic outlook. Recent figures revealed that the industrial growth grew after a massive fall in the previous month of august 31st. Strong currency led the domestic importers to face competition. On June 2011, IMF had predicted that Brazil’s economic growth will fall by half a percentage by 2012. So the figures are expected to fall from 4.1% to 3.6%. country’s inflation pressure still had not subsided and remains a major cause of setback for the country’s development. The rate of inflation surged to a substantially high value of 7.2%. Therefore the central bank had decided to lower the rate of interest. Brazil’s GDP growth rate decreased from 4% to 3.8% in 2011. Recently it has been reported that the country’s public debt fell. In order to avoid the negative impacts of financial crisis, the fiscal as well as the monetary policies have been revised. However the trade remains robust as both exports and imports witnessed a growth beyond expectations. The trade surplus has been reported to be $3.9 as on August 2011. On the contrary the market for retail sales and consumer credit experienced a slowdown. The index for purchasing manager had reduced by a considerable amount i.e. by 46% on August 2011 (CEB views, 2011). New companies have cropped up in the country which had increased the employment rate by 6.1% (Finance and investment.com, 2011). Therefore, it is expected that Brazil has all the prospects to come up as a global leader in the years to come. Development in commercial expansion and organisational growth At present Brazil comprises of 37% of the pharmaceutical company of Latin America. After Chine, Brazil is the only country which witnessed the maximum growth in the pharmaceutical sector. After 2007, Nycomed first arrived in Brazil, after that the sales percentage grew rapidly as a result of launching new products and improvement in the sales organisation (Touch health sciences. Com, 2010). Univar, which is a chemical distributing firm based in Belgium, is keen to expand its business in Brazil due to its strategic location (McDougall, 2011). In order to expand its business in Latin America, Deutsche Bank had planned to return its industry of asset management back in Brazil which it had left in 2003 (Lucchesi, 2011). The WSS department of J.P Morgan has announced its plan to expand the clearing and the direct custody business in Russia as well as in Brazil. Due to excellent market opportunities available in Brazil, the company is also willing to expand its global custody department in Brazil (J.P Morgan chase & Co, 2011). CMC biologics a leading clinical drug supplier, has decided to expand its business venture in Brazil due to its strategic location as well as market opportunities (Grunbaun, 2011). Kenersys is keen to expand its business in Brazil, owning to its long coast line and stupendous wind conditions (BS reporter, 2011). Therefore it is quite evident that companies all over the world are willing to expand their business in Brazil due to its excellent market opportunities as well as fine climatic conditions. Most of the international services, fraternal and social organisations are present in Brazil. In terms of industrialisation growth, Rotary international organisation had played an important role for the country’s industrial development. Various organisations in Brazil are also maintained by the Protestants of the Catholic Church. These social organisations that are maintained by the members of the Catholic Church have played a massive role to combat social issues in the country such as poverty and misery and also in constructing houses for the slum dwellers. The world health organisation developed its new standards to overview the conditions of growing child in Brazil. Since Brazil had put much stress to the agriculture sectors so there are various organisations that are keen to explore and nurture the agricultural sector the country. “The Brazilian Rural” society is one the biggest agricultural organisations that played an important role in enhancing the primary production of various agricultural products (Encyclopaedia of nations, 2011). “Service for peace” is a non profit organisation in Brazil that is internationally claimed and is involved in providing social services to various groups, without looking at the race, caste, religion or any other social barrier (Service for peace, 2011). The World trade organisation is keen to take steps to maintain the fluctuations in the exchange rates as well as help the country in developing innovative trade practices to enhance the country’s growth prospects (Wall street journal, 2011). So it is evident that in terms of organisational activities too Brazil is much advanced. Conclusion Brazil is among the fastest growing economies of the world. The Brazilian economy together with China, India and Russia forms the BRIC nations, which is predicted by the Goldman Sachs to the global powers by 2050. Brazil encourages various foreign investments and is also the major recipient of foreign direct investment. Brazil’s growth potential and high rate of interest makes it an attractive destination for the investors. It is however believed that despite various advantages that the economy is facing at the recent time, still a careful evaluation is required in order to enhance its growth potentials in the future. BP is reported to increase its business with Brazil in order to produce ethanol from sugarcanes. At present Brazil comprises of 37% of the pharmaceutical company of Latin America. Following the regime of globalisation and privatisation, Brazil has been successful in encouraging inflows of private investment in many sectors. Companies all over the world are willing to expand their business in Brazil due to its excellent market opportunities as well as fine climatic conditions Most of the international services, fraternal and social organisations are present in Brazil. References The Economist. 2011 Available at: http://www.ebusinessforum.com/index.asp?layout=newdebi&country_id=BR&channelid=6&country=Brazil&title=Doing+e-business+in+Brazil [Accessed on: September 21, 2011]. Service for peace. 2011. Service for peace- Brazil [Online]. Available at: http://orgs.tigweb.org/service-for-peace-brazil [Accessed: September 21, 2011]. Lucchesi, C. 2011. Deustche bank plans to Brazil Asset management business [Online]. Available at: http://www.bloomberg.com/news/2011-09-21/deutsche-bank-plans-return-to-brazil-asset-management-business.html [Accessed: September 21, 2011]. Brazil America Ventures. 2011. Available at: http://brazilamericaventures.com/ [Accessed: September 21, 2011]. Doing Business in Brazil. No date. Available at: http://www.dfat.gov.au/publications/brazil_business/brazil.pdf [Accessed: September 21, 2011]. The Economist. 2011. Available at: http://www.economist.com/node/21528287 [Accessed: September 21, 2011]. CEB Views. 2011. Brazil economic indicators- September 2011. Available at: https://cebviews.com/2011/09/19/brazil-economic-indicators-september-2011/ [Accessed: September 21, 2011]. Touch Health Sciences. Com. 2010. Business expansion in Brazil [Online]. Available at: http://www.touchhealthsciences.com/articles/business-expansion-brazil [Accessed: September 21, 2011]. BS reporter. 2011. Kenersys eyes USA, Brazil market for expansion [Online].Available at: http://www.business-standard.com/india/news/kenersys-eyes-usa-brazil-market-for-expansion/449718/ [Accessed: September 21, 2011]. The Chattanooga.com. 2011. International business council discusses Brazil and Japan [Online]. Available at: http://www.chattanoogan.com/articles/article_209208.asp [Accessed: September 21, 2011]. Index of economic freedom. 2011. Brazil. Available at: http://www.heritage.org/index/country/brazil [Accessed: September 21, 2011]. Travel documents systems. 2011. Brazil - South America [Online]. Available at: http://www.traveldocs.com/br/economy.htm [Accessed: September 21, 2011]. Domm, P. 2011. Access: Brazil- A CNBC special report [Online]. Available at: http://www.cnbc.com/id/42785493/Growing_Middle_Class_Fuels_Brazil_s_Economy [Accessed: September 21, 2011]. Finance and investment .com. 2011. Brazil GDP growth rate: Economic outlook, inflation and unemployment rate. Available at: http://www.financeninvestments.com/economics/brazil-gdp-growth.html [Accessed: September 21, 2011]. McDougall, A. 2011. Business and finance [Online]. Available at: http://www.cosmeticsdesign.com/Business-Financial/Univar-finds-its-match-to-aid-expansion-in-Brazil [Accessed: September 21, 2011]. J.P Morgan Chase & Co. 2011. J.P Morgan announces direct custody and clearing expansion [Online]. Available at: http://www.marketwatch.com/story/jp-morgan-announces-direct-custody-and-clearing-expansion-2011-09-20?reflink=MW_news_stmp [Accessed: September 21, 2011]. Grunbaun, R. 2011. Biotech drug factory cultivates new business [Online]. Available at: http://seattletimes.nwsource.com/html/businesstechnology/2016279279_biotechfactory22.html [Accessed: September 21, 2011]. Encyclopaedia of nations. 2011. Brazil organisations [Online]. Available at: http://www.nationsencyclopedia.com/Americas/Brazil-ORGANIZATIONS.html [Accessed: September 21, 2011]. The Wall Street Journal. 2011. Brazil’s government confirms import tax plan proposal [Online]. Available at: http://online.wsj.com/article/BT-CO-20110919-708810.html [Accessed: September 21, 2011]. The Central intelligence agency. 2011. Available at: https://www.cia.gov/library/publications/the-world-factbook/geos/in.html [Accessed: September 21, 2011]. Bibliography Filho, A & Arestis, P. 2007. Political economy of Brazil. Palgrave Macmillan. Brainard, L. 2009. Brazil as an economic super power? Brookings institute press. Vella, R et al. 2008. International business transactions with Brazil. Juris publishing. Ball. 2004. International Business. Tata McGraw Hill education. Lindert, P. 2010. Decentralised development in Latin America. Springer publishing. Covin, D. 2006. The unified black movement in Brazil, 1978- 2002. McFarland. Nogueira, D & Garrido, J. 1956. Joint international business ventures in Brazil. Columbia university press. Hill, C. 2005. International Business: competing in the global market. 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