International Financial Markets

International Financial Markets

The two countries that are selected for the purpose of Greenfield project are Brazil and France.

Brazil

Brazil is the world's fifth largest country and sixth largest economy. It is the largest Portuguese speaking country in the world and the only one in the Latin America. It shares its border with almost every country in the South America except for Chile and Ecuador. The country is divided into five regions that are: South, South-East, Central-West, North-East and North region. The Southern region of the country is more developed while the Northern side is less developed.

The country is among the fastest growing economies of the world. In the South American region, it is the largest country and the most developed economy. Brazil is part of the BRIC that is Brazil, Russia, China and India which are considered as the four major growing economies of the world (McCoy, 2009). Brazil's strong economy is characterized by well-developed sectors from agriculture to manufacturing to services. Another key aspect that will show that Brazil is a strong destination for the new businesses is the business confidence index (SFS, 2011). The BCI will show that how good are the conditions in the country for businesses. It also means that how good are the chances for the company's success in doing business in that country. According to the tradingeconomics.com, the business confidence index of Brazil currently stands at 56.2. The index of above 50 means that the conditions are optimistic and there will be growth in the future.

Culture of Brazil

The culture of Brazil is a mixture of African, Portuguese, American Indian and many other cultures. Though, the main influence is of the Portuguese culture as the majority of the population follows this culture. The national language of Brazil is Portuguese. The Religion followed by the majority is Roman Catholic.

Economic Indicators

GDP=US $ 2.48 trillion (2011).

GDP - real growth rate=2.7% (2011).

GDP - per Capita=US $ 11,900 (2011)

Balance of Trade=US $ 1.67billion (October 2012)

GDP - composition by sector=Agriculture 5.5%

Industry14%

Services66%

Source: (CIA factbook, 2011)

Trade Policy

The key components of the trade policy of Brazil are that they are looking forward to protect the local industries in the wake of that Brazil is moving towards de industrialization. There are several types of taxes levied upon the imported goods. The increase in the tax rate is done in order to protect the local industry. Also, the local industries ...