GLOBAL BUSINESS ISSUES

Global Business Issues

Issues in Global Business

Introduction

In today's world where entrepreneurship and owning your own business is considered to be the latest fashion to acquire wealth and status we see a lot of new businesses launching every month and every year but only few of them are able to maintain their position in the cutthroat competition and rivalry. To deal with the immensely fierce competition of today's era most countries and nations are trying their best to capitalize and exploit all opportunities with the help of gaining success and prosperity of different sectors and industry. In case of Brazil the agricultural sector enables Brazil to be one of the world's largest exporters. The aim and objective of this paper is to talk about international strategies of Brazil from variegated perspective.

Market definition

The agricultural product market is considered here as having six segments: cereals (barley, wheat, maize, rice, etc); fruit, vegetables, roots and tubers (apples, cabbages, potatoes, etc); oil crops & pulses (lentils, soybeans, linseed, etc); sugar crops and sweeteners (represented here by raw and refined sugar expressed as raw sugar equivalent); spices and stimulants (coffee, ginger, etc); and nuts (walnuts, almonds, etc) (Goldemberg 2009, 14).

It excludes livestock and poultry, fisheries, forestry, etc. The market volumes reflect supply (consumption) in each country, calculated on the basis of production plus imports minus exports. No allowance is made for changes in stock levels, and forage crops and wastage are also not included. Agricultural products are valued at producer prices. Any currency conversions included in this report have been calculated using constant 2010 annual average exchange rates (Kalicki and David 2005, 28).

Market analysis

After a period of decelerating growth, culminating in a steep decline in value, the Brazilian agricultural products market recovered this year at a double digit rate. In the forecast period, the market is expected to grow at a gradually increasing rate towards 2015 (Pires 2006, 36).

The Brazilian agricultural products market had total revenue of $89.9 billion in 2010, representing a compound annual growth rate (CAGR) of 5.6% between 2006 and 2010. In comparison, the US and Canadian markets grew with CAGRs of 6.8% and 6.1% respectively, over the same period, to reach respective values of $143.5 billion and $14.8 billion in 2010 (Baer 2003, 92).

Market consumption volumes increased with a CAGR of 2.3% between 2006-2010, to reach a total of 205.5 million units in 2010. The market's volume is expected to rise to 229.5 million units by the end of 2015, representing a CAGR of 2.2% for the 2010-2015 periods. The oil crops & pulses segment was the markets most lucrative in 2010, with total revenue of $52.9 billion, equivalent to 58.9% of the market's overall value. The cereals segment contributed revenue of $16.1 billion in 2010, equating to 17.9% of the market's aggregate value. The performance of the market is forecast to accelerate, with an anticipated CAGR of 5.9% for the five-year period 2010 - 2015, which is expected to drive the market to a value ...