COUNTRY RISK ANALYSIS

Country Risk Analysis Brazil

Country Risk Analysis Brazil

Introduction

The Brazilian economy according to the think tank Centre for Economics and Business Research (CEBR) is the sixth largest economy in the world, reported the British news channel BBC . Thus, the Latin American country has become Britain obsolete. Douglas McWilliams of CEBR, Brazil's rise is part of a global turnaround. The trend in the economy not just goes from west to east. McWilliams stated that the increase also producing countries, the basic goods like food and energy, in international comparison.

Brazil, the largest country in South America, succeeded to achieve a GDP of $ 2.1 trillion in 2010 which established them as the seventh largest economy in the world. This was by 7.5% growth, not seen since 24 years ago. Among the world powers of today, behind Brazil, are nothing more and nothing less than countries like France and Great Britain.

7.5% was conceived thanks to the efforts of industry, with growth of 10.1%, followed by Agriculture with 6.5%. In turn, the comparison base of 2009, was so low, that also helped increase the percentage, so we must be more than satisfied with the approximately 5% is expected this year.

In this paper we will discuss the Country Risk Analysis Brazil which comprise of a PEST and SWOT analysis. This will give a clear picture of the country along with the recommendations to improve and minimize the risk and enhancement of the long term development plans for future benefits.

PEST and SWOT Analysis

PEST analysis identifies general environmental factors that affect Brazil. This analysis is performed before performing the SWOT analysis in the context of strategic planning. The term comes from the abbreviation for "Political, Economic, Social and Technological." It is also used PESTEL or PESTLE variants, including aspects "Legal" and "Green" (//taz.vv).

Political and legal environment

The most important factors in the political environment of Brazil are the country stability and stability of political system of a region. These include the stability and reliability of political institutions and their role in the shaping of economic activity (interventions, subsidies, competition policy, trade policy, etc.).

Brazil is organized as a federation of twenty-six states, a federal district, which includes the capital of the country (Brasilia) and municipalities. The legal framework is defined at the local, regional, national and supranational level. They include the one hand, the legal standards that affect companies operating in the region. This includes rules of corporate governance, taxation, product liability and labour laws as well as investment, environmental protection and patent regulations. On the other hand, the use of legal norms must be observed, for example, the process of licensing procedures and the enforcement of patent claims (/analysis.businessmonitor.com).

Economic Environment

Brazil's economy is characterized by large and well-developed agricultural, mining, manufacturing and service industries. The Brazilian economy is superior to all other economies in South America and is expanding its presence in world markets. In 2001-03, after the financial turmoil, capital inflows contributed to the restoration of economic growth and stability of the national currency ...