Business+Opportunities+and+Challenges

During our time in Brazil, we were able to learn about the business opportunities and challenges that continue to play a major role in the country's economic growth. The country has a solid foundation for growth that has allowed investors and multinational companies to expand into their market. Brazil's key industries are in service, mining, manufacturing and agriculture. The development of these industries has made the country an ideal place for business opportunities. The country's expansion into global markets has allowed for a greater variety of products to be exported from airplanes and coffee to vehicles and much more.

The country's business opportunities have expanded vastly due to the growth of its major industries. Brazil has become less reliant on imported oil and a major producer of hydroelectric power. In fact, 92% of the nation's electricity is supplied through existing hydroelectric power. In addition, the country's service industry has made tremendous strides with telecommunication business opportunities on the rise, from internet to cell phone service. The success of franchises in the country has made Brazil a target location for major companies, like McDonalds. Although franchises, like Kentucky Fried Chicken, experienced some early setbacks, they have improved their marketing strategy and continue to work in the Brazilian market, as we discussed in Paulo Motta's lecture. The franchise industry has served as a major source of employment for Brazilians.

Moreover, the country's manufacturing industry still accounts for about a third of Brazil's GDP with the production of aircrafts, durable goods and vehicles. The Brazilian Market continues to provide all the elements for business opportunity.

Despite growth, there are still challenges to conducting business in Brazil. Some potential challenges over the next five years include labor regulations, education and infrastructure. Brazil continues to grow in many ways but is still lagging behind other developed nations in terms of education and especially regulations primarily concerning labor. As with the other BRIC nations, the labor costs are relatively cheap and work in two ways. It is attractive in terms of encouraging companies to establish themselves in Brazil due to the low labor costs; however, it leaves the workers with lower disposable incomes. In regard to infrastructure, there have been problems with the transportation available and roadways. The country is putting money into these areas in an effort to encourage investors and guarantee a successful Olympics in 2016.