Brazilian Macro Environment

In: Social Issues

Submitted By blaine
Words 1113
Pages 5
I. The Brazilian Macro-Environment

Investment Climate Analysis

Brazil is quite interesting place for investment and many companies are entering this developing market. Its high GDP growth, large economy, developed infrastructure, liberalisation of public sector and many Foreign Direct Investments have turned this struggling country into developing nation that holds 2nd place (China is 1st) in amount of foreign capital invested into the economy. In last 5 years, Brazilian government has been quite stable and it seems that Brazil has a sound strategy when it comes to taking its economy into top performing ones. Government is introducing new, more liberal competition laws and it is introducing new forms of investments, such as PPP, or Private Public Property, where both the investor and government share the risks by holding equal stakes in the investments.

But, let us not be blinded by the Brazilian marketing skills and their portraying of real investment climate. There is for sure a lot of space for improvement. We will perform a few analyses, which will give us precise insights into the environmental conditions for investing in Brazil, and through analysing this country; we shall decide what type of investment is the most suitable for Red & Green.

PESTL Analysis

Investment climate is the economical, institutional, policy, and regulatory environment in which firms operate. A PESTL analysis is an analysis of the external macro-environment that affects all firms. P.E.S.T.L. is an acronym for the Political, Economic, Social, Technological and Legal factors of the external macro-environment. Such external factors usually are beyond the firm's control and sometimes present themselves as threats.

Political environment
Brazil is currently a country with a stable, proactive government and there is virtually no political instability at the moment. However,…...

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