Premium Essay

Brazil

In: Business and Management

Submitted By gopz5
Words 333
Pages 2
1. Use the theories of international trade and investment to help explain Brazil's international information technology sector?

Comparative advantage is an easy way to explain Brazils growing international information technology sector. Brazil has developed a sophisticated telecommunications and network structure that has been rated higher than other countries like China and India, where international trade is traditionally outsourced. Even wages is cheaper in Brazil than united states along with lower employee turnover and total operating cost. As it is mentioned in the case that Brazil can produce more with cheaper labor. According to Heckscher and Ohlin theory of factors of endowment it is shown by Brazil through exporting information technology that is available in large amounts in brazil due to its size and economic power.
The Linder theory of overlapping demand shows that since income level affects customers likes, each country’s income level should determine the goods that are determined. Trading information technology with Brazil is logical since its' per capita income is closer to the United States than that of China or India. The international product life cycle theory shows that many products first produced in the United States will eventually be produced by other countries such as BRIC nations and imported back to the United states.

2. What recommendations would you give to the Brazilian government and its outsourcing industry in order to improve their prospects for success in building a strong international competitive position in the information technology outsourcing business?

In order to build a strong international competitive position in the information technology outsourcing business, brazil should invest more in education and skill training programs which gives people knowledge and proper skill for the work they will do. They should...

Similar Documents

Free Essay

Brazil

...than most emerging markets. Brazil’ Gdp grew 7.5% in 2010 and they are currently the 8th largest economy in the world. This economic growth combined social programs has strengthened the purchasing power of each consumer. For the first time, a majority of Brazilians are now middle class, and domestic consumption is an important driver in Brazil’s growth. The rise in domestic demand and employment, has pushed inflation to 6% causing the central bank to boost interest rates. Because of this, the value of their currency has risen nearly 40% since 2009. Now that we’ve defined Brazil’s economy, lets take a look into Brazilian society. The second aspect I researched was Brazil’s culture. Brazil is rich in diversity and considered a high context culture. Within this culture, they value people and social harmony, relationships, and group identity. I’ve found that it’s important to establish relationships when conducting business in brazil. Because of the many different cultures, Brazillians have adapted to mixed foods. However, rice, beans, and meats are a predominant food in their diet. Brazil In addition to culture, political stability needs to be assessed as well. So lastly, I will discuss with you Brazil’s political stability. Brazil is a constitutional democracy, with a system of checks and balances to prevent abuses of authority. They scored an 8 in the political risk index, which demonstrates their solidity as a country . In recent years, Brazil has experienced no......

Words: 419 - Pages: 2

Free Essay

Brazil

...Housing and Living Conditions in Brazil Since World War II Brazil has rapidly urbanized into a country that has been steadily increasing its population over the years which has resulted in crowding in many areas of the country. Due to industrialization, many rural families have moved into the large cities. In Brazilian culture it is very common for families to live in close proximity to each other. The rapid urbanization of Brazil has caused property prices to increase which has made it difficult for many people. Due to the economic pressures of today, many extended families in the middle and lower class are having to dwell with each other in crowded living conditions just to survive. Many middle class people are forced to live in small densely populated high rise apartments and much of the lower class population is forced to live in smaller towns that are often several hours away from where they work. Clothing As in any country, the dress of the people depends a lot of the climate. Brazil has a diverse climate because it covers such a wide area of land so there are several different types of clothing that the people wear all across the country. However, the fact that Brazilians usually prefer bright colors and accessories can be seen throughout the country. In the southern region of Brazil and in the urban areas, there is a large European influence and many of these people embrace modern fashion trends. The most common item in any brazilian’s wardrobe is jeans. ......

Words: 307 - Pages: 2

Premium Essay

Brazil

...Introduction Brazil is the economic leader in South America. It is located in eastern South America bordering the Atlantic Ocean. Almost 85% of South American countries border Brazil. Most of the country is located below the equator and it has a total area of 8,511,965 square kilometers (Brazil Facts) making it the fifth largest country in the world behind the U.S. Brazil has a distinctive topography, in the north and west you can find the Amazon Basin with tropical-like weathers. Brazil is also facing deforestation losing about 52,000 square miles of amazon each year. In the south east of the country you will find its highlands and plateaus. Brazil also has a distinctive climate. The climate is generally classified into five subtypes: equatorial, tropical, semiarid, highland tropical and subtropical but 90% of the country is mostly considered tropical. (Climates of Brazil) Social Economic and Cultural Factors As for being the fifth largest country in the world land wise, Brazil is also the fifth largest country when it comes to population. According to the CIA Brazil’s population in 2012 was over two hundred million. 26.2% of the population in 2011 is between 0-14 years of age, 67% of the population in 2011 is between 15-64 years of age, and 6.7% of the population in 2011 is 65+ years of age.(CIA Fact book) Because Brazil was colonized by the Portuguese the primary language in this country is surprisingly Portuguese! Other slightly common languages you might also hear are...

Words: 1944 - Pages: 8

Premium Essay

Brazil

...the South American continent and strongly influences the attraction of foreign investment. It is the fifth largest country on the planet, with a population of 180 million inhabitants, responsible for a very promising, predominantly urban, market. The country has the possibility to overcome the situation of exclusion from the digital world for a large portion of its population (approximately 28 million Brazilians have internet access, the highest rate in Latin America), due to an increase in telephone services, particularly in the case of prepaid mobile telephones. In addition, the development of a specific model of digital television makes the Brazilian market a gigantic laboratory for the use of applied technology. Furthermore, Brazil has the largest and most diversified system of science, technology and innovation in Latin America, a result of the accrual of accomplishments in the last 50 years, which include the capacity for oil prospection in deep waters and the ability to build aircrafts. Furthermore, the country invests in space and nuclear programs, as well as in new areas currently at the border of knowledge, such as nanoscience, nanotechnology and biotechnology. Infrastructure and partnerships Within the area of infrastructure, due to the urgency in the social agenda, the demand for modernization is shared between the State and capital from the private sector, in initiatives known as Public-Private Partnerships (PPP). In the Transport sector, the......

Words: 1445 - Pages: 6

Premium Essay

Brazil

...2012 BRAZIL Unemployment Shadae L. Gardner 2012 BRAZIL Unemployment Shadae L. Gardner Brazilian unemployment affected young Brazilians the most by increasing the unemployment rate 2.3 times higher than usual. It will be less developed job skills and work experience for these young adults. Following a rate of steady decline, the youth unemployment rate rose 0.5 percent points to 18.5 percent average in 2009 while the total unemployment rate raised 0.2 percent average in 2009. By sector, the largest decrease in employment occurred in manufacturing due to a sharp fall in industrial production (12.5 per cent), mainly in export-oriented industries. Paid employment in the sector declined 5.3 per cent in 2009 while working hours contracted slightly (0.3 per cent) and real wages rose 2.5 per cent. At the total economy level, over 94,000 jobs were created during the first three quarters of 2009 compared to the same period in 2008. Employment growth by sector was highest in public administration, education and health (130,400 jobs created), followed by financial and business services (19,100) and construction (16,300). In addition to job losses in manufacturing, net job losses totaled 104,600 in utilities and 14,700 in wholesale and retail trade. In the third quarter of 2009, employment continued to decline in utilities (2.4 per cent) and wholesale and retail trade (0.16 per cent), albeit at a slower pace. Conversely, job growth continued to expand in public......

Words: 650 - Pages: 3

Premium Essay

Brazil

...Beauty of Business in Brazil Unknown to so many, South America is a very robust and expanding region with a population reaching close to 200 million native people as well as foreign population. South America has a very tropical climate, and the primary language in South America is Portuguese. Brazil is the fifth largest country in the world, and the largest country in Latin America. Brazil is an economically growing country located in northeastern part of South America. Brazil gained its independence from Portugal in 1822. Years later, in 1888 slavery was abolished in the nation. The next year in 1889, The Brazilian Republic was established. Brazil is well-known as the world’s leader in coffee production and exportation. Brazil produces one third of the world’s total coffee production. The country has held this position in the coffee market for 150 years. In 1982, Brazil held the world’s largest debt at the time. In 1986, the country put forth a plan to control inflation (BBC News. 2012). The country has come a long way since last century. Brazil’s economy is now ranked seventh in the world related to nominal GDP and the seventh largest in terms of purchasing power and value of the Brazil’s currency. In 2012, the country’s gross domestic product was 2.253 trillion US dollars. According to BBC News, Brazil’s economy growth has doubled from the expected rate in the final quarter of 2013. This growth was surprising considering the Countries economy declined......

Words: 1240 - Pages: 5

Premium Essay

Brazil

...(1) As of the date of the case and as explained in the case: is Brazil leading the BRICs? Please explain and defend your position. (We will discuss more recent data in class if time.) I’d like to say that Brazil was leading the BRICs as of the date of the case. Several facets were noticed as below: • Growth of economy: Brazil had sustained an average annual GDP growth of 4% since 2000. Between 2002 and 2009, inequality and poverty had declined significantly and more than 30 million Brazilians had advanced from lower income strata to the middle class. • Brazil held important leadership positions in the Group of Twenty (G-20) and had become a major player in multilateral trade negotiations. • Brazil’ s success in World Trade Organization (WTO) disputes concerning developed country agricultural subsidies, use of WTO compulsory licensing provisions to break patents, and diplomatic negotiations with Iran had generated tensions with the United States and the European Union. • A Leading role in WTO negotiation: Brazil stood out as a leading voice of emerging markets, led the creation of the WTO G-21, a block of developing countries that negotiated collectively at WTO meetings. Whereas the United States and the European Union were at the forefront of tariff negotiations in the past, the shift in trade topics put Brazil and other middle-income countries at the center of the Doha round. • Public health: Brazil’ s government purchased drugs to treat infected patients and......

Words: 675 - Pages: 3

Free Essay

Brazil

...Brazil’s major weaknesses. Brazil has a complex high tax and labor environment. Brazil is having a financial crisis, with a lot of unemployment. For most of the jobs, the salary is very low. They suffer from underinvestment in the electrical generation, and it makes them prone to blackouts. The Brazilian population is very weak in the English language skills, because about 99% speak Portuguese. Brazil has a shortage of international experience with technical and managerial ranks. It can become a problem for multinationals with operations coming to Brazil. Only about 7% of Brazil’s populations have a University degree. Brazil’s currency has fluctuated over several decades. In the bigger cities like Rio de Janeriro and Sao Paulo they have more crime and social problems. Brazil IT sourcing is small but has some potential in the future. I will now talk about all of Brazil’s strengths. They have a tradition of a very strong Engineering schools with high quality graduates. In their Banks they have a very sophisticated automated banking with dynamic domestic market for IT software and services. The Brazilian’s are more westernized and they practice culture and values. It can be shared understandings in having good working relationships that are effectiveness. It will bring good communications with companies in the US and Western Europe. Brazil has about 300,000 that are employed in the IT services. By having a minimal time zone it gives Brazil an advantage......

Words: 448 - Pages: 2

Premium Essay

Brazil

...In 1822, Brazil became an independent nation from Portugal and is now the 5th largest country in the world with a quickly growing economy, a population of almost 200 million people, and a booming middle class. Located in the middle-easter part of South America, Brazil borders Peru, Bolivia, Paraguay, Uruguay, Columbia, Venezuela, Guyana, Suriname, French Guiana - nearly all of the countries in South America! Brazil has a massive territorial size, covering nearly half of the continent, occupying an area of 3,286,470 square miles. Since July of 1994, under President Itamar Franco’s plan to stabilize the Brazilian economy, the currency has been the real. Brazil has become one of the largest markets in the world. When you think of Brazil, you may think of coffee, sugar cane, and other agricultural products, however, this economically diverse country has a strong industrial base producing and exporting commercial aircrafts, chemicals, petro chemicals, and machinery to the United States and South American countries. It also has many natural resources, including bauxite, gold, iron ore, manganese, nickel, phosphates, platinum, tin, uranium, petroleum, hydropower, and timber. Yet the largest sector of economy is in services including banking, telecommunications, energy, commerce, and information technology. Although the capital is Brasilia and the largest city is Sao Paulo, I think Brazil’s most well known city is unarguably Rio de Janeiro. This has a lot to do with Rio being......

Words: 519 - Pages: 3

Free Essay

Brazil

...The varying population of Brazil makes it a prime spot for introducing products. In order to understand marketing aspects we first need to look at the background of the country in order what needs we could meet with our product. Brazil was “discovered” in 1500 with Portuguese awarded the territory in accordance with the agreement of Tordesillas. It was named after a red wood, pau-brasil, which a deep red dye was made out of. In the early days of Brazil sugar plantations drove the economy in the northern part of the country. This lasted for about 150 years until gold was found in the inland southern part of the colony in an area called Minas Gerias in around 1690. This is important because it begins to shift the wealth of the country from the north to the south. Diamonds and other minerals were found. This caused a switch in the main entry port to Rio de Janeiro. In the early 1800’s Napoleon’s army chased the royal family of Portugal out where they fled to their colony of Brazil landing in Rio. As soon as they landed they began to build more modern type infrastructures for Brazil such as banks, universities, mints and museums. The opening and expanding of these ports allowed for better trade with other European nations. When Napoleon fell it allowed Dom Joao VI to return to Portugal and leave his son in charge. During this time Brazil earned status that equal of Portugal. Slave labor was heavily used in Brazil until it was ended in 1888. Landowners were unhappy......

Words: 1338 - Pages: 6

Free Essay

Brazil

...Brazil’s War of Independence Angel Elkins Baker College HIS 411/Seminar 4 February 5, 2014 Brazil’s War of Independence Brazil began as a Portuguese colony therefore it did not endure as violent independence wars as the Spanish colonies certainly did. Brazil was officially declared as an independent colony in 1822 (Sadlier, 2010). At this time the colony was controlled by an emperor who served somewhat as a mediator over multiple aspects of government and land owning issues. At this time the government was limited to only the higher up or the “elite” citizens. This in turn left out a major portion of the Brazilian population from having any say in their colony or any political matters (Kesselman, 2013). In 1889 the empire crashed and the emperor (Dom Pedro II) was exiled. It was then taken over by the land-owning oligarchy. At this time slavery was on a very significant decline and the rise of the republican people was the cause of the end of this empire. Even though the rules and laws of the Republican party were limited to very few/certain civilians, it did not allow dictatorship by an emperor. Greater authority was given on multiple governmental policies, money, taxes and army structure (Kesselman, 2013). In 1930 a man named Getulio Vargas came into this empire, Brazil at this time was dealing with a great depression due to the decrease in the worlds demand for coffee which was they’re greatest trading resource. This was truly they’re worst crisis at this......

Words: 1164 - Pages: 5

Premium Essay

Brazil

...Brazil [pic] By:Megan Robinson [pic] Brazil is the 6th largest country in the world in size and the largest country in economy and size on the South American continent. While the country started under Portuguese rule for three centuries, Brazil took over its Independence in 1882. Brazil’s official language is Portuguese and the capital is Brasilia. The country is prodominatly known for the Amazon Rainforest. Brazil follows in size to the largest economy in the world, the United States of America.(The World Factbook) With Brazils growing economy they are doing things progressively more like the United States but still maintain some differences of their own. Families in America and Brazil in this current day are very similar. In Brazil the divorce rate has in the recent years hit and all time high. Divorce rates rose 36.8% in one year from 2009 to 2010. These increases were contributed to the ease of the divorce process that congress approved in 2009.This took their divorce rate to 1.8 per 1000 people.(Divorce Rate) However this number is still lower than that of the United States with a divorce rate of 4.9 per 1000 people.(Cherlin) When looking at fertility in Brazil, it has hit an all time low. According to a census in 2011, fertility fell to 1.94 children per woman. This is concerning because in order for Brazil to maintain their population women need to be conceiving on average of 2.1 children. Many factors are contributing to the decline in birth rate such as...

Words: 2534 - Pages: 11

Premium Essay

Brazil

...1. The United States and Brazil have their differences in slavery. Slaves in Brazil tended to die younger than North American slaves. Defining the children of slaves as slaves was not as economically important as it was in the United States. Long time Portuguese immigrants to Brazil were mostly male. Also, creating a clear “black-white” dichotomy was not as important as it was in the United States. 2. There are several ways that whitening was pursued. One way is that they encouraged and subsidized the immigration of European workers and completely banned black immigration. Whitening in Brazil also included active encouragement of racial intermarriage to improve black genetics with white genes. Those few blacks who were able to crawl up the class ladder were also whitened. The third way is that the whitening policy also allowed what was called the mulatto escape hatch. Most poor blacks viewed their difficulties in terms of class, not race. 3. The most dramatic recent change in Brazil’s racial policies was the government’s official endorsement of a quota-based affirmative action program. Those who opposed affirmative action argued that it is impossible to determine who is truly black and therefore deserve preferential treatment. 4. One way that Brazil’s weak political parties are becoming stronger lately is that legislatures voted with their parties to a higher degree than has been assumed. They suggested that party leaders were able to marshal their troops......

Words: 801 - Pages: 4

Premium Essay

Samba's Arrival Brazil: Brazil

...Arrival: Brazil The main point the author is making under this topic “Arrival: Brazil” is that Brazil is the largest country in South America according to its geographical size and the population it holds. Amazon rainforest is very significant to Brazil because it covers up the vast portion of the country. Brazil’s largest cities are mostly found along the coastline. Brazil was colonized by the Portuguese and they discovered that Brazil is the land enriched with fertile soil (good to grow crops) and natural resources. Brazil was one of the center of triangular trade where the slaves from Africa were brought to work on plantations such as coffee, sugar and tobacco. African slaves were also brought to work when the gold mines were discovered. Getúlio Vargas is one of the important political figure in the history of Brazil who became president and started revolution with the help of military support, urban working and middle class resulting many social and economic reforms. (I)...

Words: 436 - Pages: 2

Premium Essay

Brazil

...White sandy beaches, tanned skin, vibrant music and joyful people. If asked to describe Brazil in a few words, most people would most likely mention those four things, but there is much more when it comes to this diverse and amazing country. It would take me days to talk about every single detail, so I will make it short and try to point out the most important things about Brazil. Even if you are not planning on traveling to Brazil anytime soon, it is always interesting to learn about different countries, because it enriches your knowledge about different cultures, opens your mind to different possibilities, and most important, the deeper understanding of something different is what makes your life richer. For those of you who don’t know, I was born and lived in Brazil my entire life and throughout middle school and high school I always had history and geography classes about Brazil, so I have some understanding in that area. Today, I will talk a little bit about the history and geography, the culture, and what you should know when planning a trip to Brazil. First I will tell you a little bit about the history and geography of Brazil. Brazil was colonized by indigenes and according to the website Lonely Planet, there were around two to four million natives who were divided into several tribes, prior to Portugal’s arrival in the 16th century (http://www.lonelyplanet.com/brazil/history). After Portugal’s arrival, there was a cultural shock between both cultures. The Portuguese...

Words: 1038 - Pages: 5