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Tabla de contenido
Country Background........................................................................................... 3
PEST.................................................................................................................... 3
Infrastructure...................................................................................................... 6
Analysis............................................................................................................... 7
The understanding culture and Marketing..........................................................7
Management style in Brazil............................................................................... 15
Analysis............................................................................................................. 17

Country Background
Brazil underwent more than a half century of populist and military government until
1985, when the military regime peacefully ceded power to civilian rulers. Brazil
continues to pursue industrial and agricultural growth and development of its
interior. Exploiting vast natural resources and a large labor pool, it is today South
America's largest economy and a regional leader. Pressing problems include high
income inequality, crime, inflation, rising unemployment, and corruption.

PEST
Political

The Brazilian Constitution, created in 1988, supports a democratic government

with universal suffrage by direct and secret ballot. There are 3 branches of
government: the executive, legislative, and judicial. The president exercises
executive power, and is elected by direct ballot to a 4-year term. Legislative power
is exercised by the bicameral (2-chambered) National Congress comprised of: the
Federal Senate, or upper house, whose 81 members are elected by a system of
proportional representation for 4 years; and the Chamber of Deputies, or lower
house, whose 513 members are elected for 8 years by direct ballot, and whose
districts are proportional to the size of the population.
Economy

GDP:
$3.264 trillion (2014)

2.7% (2013)

$3.259 trillion (2013)

1.8% (2012)

$3.172 trillion (2012)

GDP per capita

GDP growth rate:

$16,100 (2014)

0.1% (2014)

$16,100 (2013)
4

5
$15,600 (2012)

Agriculture products:
Coffee, soybeans, wheat, rice, corn, sugarcane, cocoa, citrus; beef
Industries
Textiles, shoes, chemicals, cement, lumber, iron ore, tin, steel, aircraft, motor vehicles and
parts, other machinery and equipment
Labor Force

5.4% (2013)

110.9 million (2014)

Population below poverty rate:

Unemployment rate:

21.4%

4.8% (2014)

Approximately 4% of the population are

below the "extreme" poverty line

Inflation rate:

Exports:

6.4% (2014)

242.7 billion (2014)

5.9% (2013)

242 billion (2013)

Products that are being exported:

Transport equipment, iron ore, soybeans, footwear, coffee, automobiles
Export Partners
China 19%, US 10.3%, Argentina 8.1%, Netherlands 7.2% (2013)
Imports:
$241.9 billion (2014)
$239.6 billion (2013)
Products that are being imported
Machinery, electrical and transport equipment, chemical products, oil, automotive
parts, electronics
Imports partners
China 15.6%, US 15.1%, Argentina 6.9%, Germany 6.3%, Nigeria 4% (2013)
External debt
$535.4 billion (31 December 2014) $482.8 billion (31 December 2013)
Social

Ethnic groups:
White 47.7%, mulatto (mixed white and black) 43.1%, black 7.6%, Asian 1.1%,
indigenous 0.4% (2010)
Religions:
Roman Catholic 64.6%, other Catholic 0.4%, Protestant 22.2% (includes Adventist
6.5%, Assembly of God 2.0%, Christian Congregation of Brazil 1.2%, Universal
Kingdom of God 1.0%, other Protestant 11.5%), other Christian 0.7%, Spirits 2.2%,
other 1.4%, none 8%, unspecified 0.4% (2010)
Languages:

Portuguese (official and most widely spoken language)

Extra: Spanish (border areas and schools), German, Italian, Japanese, English, and a
large number of minor Amerindian languages

Population:
204,259,812 (July 2015)
Literacy:
Definition: age 15 and over can read and write. Total population: 92.6%
Male: 92.2%

Female: 92.9% (2015)

Technology

Historically like many developing and emerging nations, Brazil was a supplier of
telecommunications services to the country.
Internet
Users: 108.2 million
Percent of population: 53.4% (2014)
Telephones:
280.7 million

Infrastructure
Airports: 4,093

Railways: 28,538 km

Heliports: 3,395

Waterways: 50,000 km

Pipelines: condensate/gas 251 km; gas 17,312 km; liquid petroleum gas 352 km;
oil 4,831 km; refined products 4,722 km.
Major seaport(s): Belem, Paranagua, Rio Grande, Rio de Janeiro, Santos, Sao
Sebastiao, Tubarao
River port(s): Manaus (Amazon)
Dry bulk cargo port(s): Sepetiba ore terminal, Tubarao
Container ports (TEUs): Santos (2,985,922), Itajai (983,985)(2011)
Oil terminal(s): DTSE/Gegua oil terminal, Ilha Grande (Gebig), Guaiba Island
terminal, Guamare oil terminal
LNG terminal(s) (import): Pecem, Rio de Janiero

Analysis
Brazil is one of the most developed countries in Latin America, competing side by
side with Mxico in a global market. By making this work we could learn how well is
doing Brazil in an international market with its imports and exports, and how much
it has grown with their GDP; this research showed that Brazil might be stuck in its
growth, but this could be because of the growth it had in the past decades.
Brazil could also beat is in the literacy rates it has, because most of its population
knows how to read and write, so this showed Brazil has a good intellectual
development. Also we learned that Brazil is full of different religions and ethnic
groups thanks to its geographic influence.

The understanding culture and Marketing

The culture source:

Geography

Brazil is located on the Eastern South America, bordering the Atlantic Ocean. Brazil
shares land borders with Uruguay to the south; Argentina and Paraguay to the
southwest; Bolivia and Peru to the west; Colombia to the northwest; and
Venezuela, Guyana, Suriname and the French overseas department to the north. It

also includes archipelagos, such as Fernando de Noronha, Atol das Rocas, Ilhas
Martin Vaz and Penedos de Sao Pedro e Sao Paulo. Brazil is the fifth largest
country in the world, with a total area of 8,515,770 sq. km including 157,630 sq. km
of water. The highest point in Brazil is the Pico da Neblina at 2,994 meters. Brazil
has the most important are the Amazon (the world's second-longest river and the
largest), the Paran and the Iguau (which includes the Iguazu Falls), the Negro,
So Francisco, Xingu, Madeira and Tapajs rivers. The most common climate in
Brazil is mostly tropical, but temperate in south. Brazil's large territory comprises
different ecosystems, such as the Amazon rainforest, recognized as having the
greatest biological diversity in the world. The rich wildlife of Brazil reflects the
variety of natural habitats. Biodiversity can contribute to agriculture, livestock,
forestry and fisheries extraction. In the Brazilian GDP, the forest sector represents
just over 1% and fishing 0.4%. Theirs natural resources are bauxite, gold,
manganese, nickel, phosphates, platinum, tin, uranium, petroleum. The current
issues of environment are: deforestation in Amazon Basin destroys the habitat and
endangers a multitude of plant and animal species indigenous to the area; there is
a lucrative illegal wildlife trade; air and water pollution in Rio de Janeiro, Sao Paulo,
land degradation and water pollution caused by improper mining activities. The
population of Brazil is 204,259,812 (July 2015).

History

The first habitants of Brazil were the Arawak, Carib Indians, the Tupi-Guarani, the
Ge and the Pano. Most of these tribes were semi-nomadic and lived by hunting,
gathering and agriculture. The first European explorer was the Spanish navigator
Vicente Yaz Pinzn, due to the Treaty of Tordesillas, the new territory was
attributed to Portugal but Spain didnt claim the discovery of Pinzn. In April 1500,
the Portuguese navigator Pedro lvares Cabral reached the Brazilian coast. He
officially declared the territory possession of Portugal. It was called Terra da Vera
Cruz, who later took the name of Brazil. The first European settlement took place in
Sao Paulo in 1531, by order of King Joao III of Portugal, who divided the coast into
12 captaincies. The first governor of Brazil was Tom de Sousa, in 1549. During

the colonial period, Brazil was ruled under the influence of various economic
cycles, according to export products like Pau-Brazil (wood), sugar, coffee, the
importation of slaves from Africa to work on plantations the exploitation of gold and
diamonds. The abolition of slavery in Brazil would take place in 1888. In 1807
Napoleon invaded Portugal, so King Joao VI moved his court to Rio de Janeiro.
The ports open to international trade and the colony is consolidating gradually. The
Portuguese government attempted to turn Brazil into a colony again, for depriving
him of the rights. The Brazilians refused to yield, and Peter joined his cause,
declaring the country's independence on 7 September 1822. Pedro was declared
the first emperor of Brazil. The last Portuguese soldiers surrendered on 8 March,
1824, and independence was recognized by Portugal on 29 August 1825, in the
Treaty of Rio de Janeiro. During the 59 years reign of Pedro II, Brazil was
victorious in three international war: the Great War, the War Aguirre and the War
of the Triple Alianza, and also it was the consolidation of representative
democracy. As at first republican government was little more than a military
dictatorship. During the first period of Republican rule, Brazil maintained a peaceful
and neutral foreign policy, which was only interrupted by the War of Acre and the
First World War. Finally, in 1930, Gtulio Vargas led a coup and assumed the
presidency of the republic with the support of the military. Brazil remained neutral
during the early years of World War II, but many events brought the country to line
up in favor of the United States. The economy and industrial sector grew
significantly, but his greatest achievement was the construction of the new capital,
Brasilia, inaugurated in 1960. It followed the military regime with many presidents.
Luiz Ignacio Lula da Silva was elected in 2002 and reelected in 2006, showed that
Brazil finally managed to achieve politic stability. In 2010, Dilma Rousseff became
the first woman elected president until today because she was reelected.

Economy

Characterized by large and well-developed agricultural, mining, manufacturing, and

service sectors. Brazil's economy outweighs that of all other South American
countries, and is expanding its presence in world markets. Since 2003, Brazil has

steadily improved its macroeconomic stability, building up foreign reserves, and

reducing its debt. After strong growth in 2007 and 2008, the onset of the global
financial crisis hit Brazil in 2008. Brazil experienced two quarters of recession.
However, Brazil was one of the first emerging markets to begin a recovery. GDP
growth has slowed since 2011, due to several factors, including: overdependence
on exports of raw commodities, low productivity, high operational costs, persistently
high inflation, and low levels of investment. After winning re-election in October
2014, President Dilma Rousseff appointed a new economic team led by Finance
Minister Joaquim Levy, who introduced a fiscal austerity package intended to
restore the primary account and preserve the countrys investment-grade
sovereign credit rating. Brazil seeks to strengthen its workforce and its economy
over the long run by imposing local content and technology transfer requirements
on foreign businesses, by investing in education through social programs such as
Bolsa Familia and the Brazil Science Mobility Program, and by investing in
research in the areas of space, nanotechnology, healthcare, and energy. Tourism in
Brazil is a growing sector and key to the economy of several regions of the country.
Economic data (2014)
Currency: Brazilian Real.
The total GDP is about $2.247 trillion of dollars and the GDP per capita is about
$11,281 dollars. Exports: $242.7 billion of dollars and Imports: $241.9 billion of
dollars.

Technology

The National Council for Scientific and Technological Development is the

government agency responsible for directing, managing and promoting the
development and promotion of scientific and technological activities. Technological
research in Brazil is largely carried out in public universities and research institutes,
with the majority of funding for basic research coming from various government
agencies. Brazil's most esteemed technological hubs are the Oswaldo Cruz
Institute, the Butantan Institute, the Air Force's Aerospace Technical Center, the
Brazilian Agricultural Research Corporation and the INPE. Brazil has the most

developed in Latin America as great resources intended for the manufacture of

vehicles and satellites space program. The October 14, 1997, the Brazilian Space
Agency signed an agreement with NASA to provide parts for the ISS. This
agreement gave the possibility for the March 30, 2006 Marcos Pontes, aboard the
Soyuz vehicle, was transformed into the first Brazilian astronaut to orbit the planet.
Uranium is enriched at the Nuclear Fuel Factory in Resende, Rio de Janeiro. Brazil
obtains 88% from its electricity from hydroelectricity. Brazil is one of the three
countries in Latin America with an operational Synchrotron Laboratory, a research
facility on physics, chemistry, material science and life sciences.

Social Institutions

Health: The Brazilian public health system, the National Health System (SUS), is
managed and provided by all levels of government. The public health services are
universal and available to all citizens of the country for free. Nevertheless, millions
of affluent Brazilians have private health care coverage. According to the Brazilian
Government, the most serious health problems are (in 2002):
Mortality by non-transmissible illness: 151.7 deaths per 100,000 inhabitants
caused by heart and circulatory diseases, along with 72.7 deaths per 100,000
inhabitants

caused

by

cancer.

Mortality

caused

by

external

causes

(transportation, violence and suicide): 71.7 deaths per 100,000 inhabitants.

Education: The Federal Constitution and the Law of Guidelines and Bases of
National Education determine that the Federal Government, States, Federal
District and municipalities must manage and organize their respective education
systems. Each of these public educational systems is responsible for its own
maintenance, which manages funds as well as the mechanisms and funding
sources. The constitution reserves 25% of the state budget and 18% of federal
taxes and municipal taxes for education. According to the IBGE (Brazilian Institute
of Geography and Statistics), in 2011, the literacy rate of the population was
90.4%, meaning that 13 million (9.6% of population) people are still illiterate in the
country.

Family: Traditionally, family is the foundation of social structure in Brazil. In the

past, Brazilian families tended to be large and when a couple married, the
individuality of that couple as a new household was recognized and respected.
However newly-married couples were also expected to maintain close family ties
with their parents, aunts, uncles and other extended family members, godparents
and godchildren. Family gatherings were, in good times, opportunities for
socializing, but these relationships also provided a network to turn to in times of
trouble or need.

Traditions

Religion: The constitution provides for freedom of religion and separation of

church and state, making Brazil an officially secular state. The law prohibits any
form of religious intolerance, although the Catholic Church enjoys a privileged
status. Brazil has the world's largest Catholic population. According to the
Demographic Census, 73.57% of the population followed Roman Catholicism;
15.41%

Protestantism;

1.33%

Kardecist

spiritism;

1.22%

other Christian

denominations; 0.31% Afro-Brazilian religions; 0.13% Buddhism; 0.05% Judaism;

0.02% Islam; 0.01% Amerindian religions; 0.59% other religions; while 7.35% have
no religion.
Music: The music of Brazil was formed mainly from the fusion of European and
African elements. The major contribution of the African element was the rhythmic
diversity and some dances and instruments. Samba is considered the most typical
and on the UNESCO cultural heritage list. Maracatu and Afox are two AfroBrazilian music traditions. Also the capoeira music and Choro that is a very popular
music instrumental style. Bossa nova is also a well-known style of Brazilian music
developed and popularized in the 1950s and 1960s.
Literature: Brazilian literature dates back to the 16th century, to the writings of the
first Portuguese explorers in Brazil, such as Pro Vaz de Caminha, filled with
descriptions of fauna, flora and commentary about the indigenous population that
fascinated European readers. Brazil produced significant works in Romanticism,
Modernism and Post-Modernism.

Cultural symbols

Language: The official language of Brazil is Portuguese (Article 13 of the

Constitution of the Federal Republic of Brazil).
Carnivals: The Rio Carnival is among the largest festivals in the world. The festival
is usually characterized by fun, parties and amazing dances. The festival dates
back in the 1720s.
Sculptures: Christ the Redeemer statue is the most frequented tourist site in
Brazil. It is also among the Seven Wonders of the World. The statue stands tall in
Rio de Janeiro.
Natural resources: The Iguazu Falls is a unique and complex waterfall. It is
among the best attraction sites in Brazil and a must see for everyone. This is an
ideal place for people who love adventure.

Beliefs

Gastronomy: Brazilian cuisine varies greatly by region. Examples are Feijoada,

considered the country's national dish; and regional foods such as vatap,
moqueca, polenta and acaraj. The national beverage is coffee and cachaa that
is Brazil's native liquor and the national cocktail is Caipirinha. An average meal
consists mostly of rice and beans with beef and salad.
Education: Brazil has never invested heavily in public education and most middleclass and elite families send their children to private school. Two-thirds of all public
monies spent on education in Brazil goes to universities, the other third to public
primary and secondary schools.

Cultural influences

Sports: The most popular sport in Brazil is football. The Brazilian men's national
team is ranked among the best in the world according to the FIFA World Rankings,
and has won the World Cup tournament a record five times. Some sport variations
have their origins in Brazil: beach football, futsal (indoor football) and footvolley

emerged in Brazil as variations of football. In martial arts, Brazilians developed

Capoeira, Vale tudo, and Brazilian Jiu-Jitsu.
Carnivals: Carnival is a four-day extravaganza marked by parades of costumed
dancers and musicians, formal balls, street dancing, and musical contests, a truly
national party. Like Rio Carnival.
Conclusion
The culture source for a country is important because it speaks of how it is
constructed. The geography is important because the location of a country heavily
involved in its development. We think that Brazil is very well located, it is the fifth
largest country in the world. It has many natural resources and a rich and wide
culture. Also it have a one of the Seven Wonders of the World. We think that the
European influence (Portugal) has had contributed much as it is a country that has
managed to grow in all areas. The history for a country is essential because it
serves to understand why the country is so today. In this case, Brazil surpassed
military and political regime to become in a federal republic. Brazil's economy is in
a recession right now but it is a country that has developed well, GDP and exports
and imports are favorable. Technology, health and education also contribute to the
development of a country, as we see in Brazil, all these sectors are in charge of the
government that is responsible for its maintenance. As we can see the government
has performed well since technology is one of the most developed in Latin
America, their level of education is very high, the literacy rate of the population was
90.4%. While most prefer private education. And in health, it provided free and
good services.
The traditions, beliefs and cultural symbols also are very important because we
think that taking into account our habits and customs characterize a community;
also they promote social and cultural participation, and strengthen the collective
values of tradition. Brazil has many traditions and cultural symbols like the
Portuguese language that is spoken in 11 country as their official language. Also
the music, the carnivals, the football, the gastronomy are the key for the culture of
Brazil. The traditions and customs change over time as a result of new experiences

and knowledge of society, because of its need to adapt to nature and the influence
of other social groups with which contacts. The force of the customs and traditions
lies not in how often people practice them, but that people truly share ideas and
beliefs that originated the custom and tradition. We think that Brazil is one of the
countries that most preserve their customs, traditions and beliefs.
We think that the culture in international trade, is a very important element, which
can influence the results of the negotiations and the continuation of trade relations
between countries of different cultures.

Management style in Brazil

In Brazil, business practices vary by region. In the major cities of Brasilia, Rio de
Janeiro and So Paulo, many companies are accustomed to deal with international
businesses, interact with different cultures, etc. but in other areas, the business
practices may be less international and more patriarchal, meaning that in those
areas the senior people do not like to establish deals with businesswomen, not
even to have them present during meetings. However, regardless of which type of
business practices we are experiencing, it is crucial to take the time to build the
proper working relationships.
Being a foreign manager in that Southern-American country implies to take time to
understand how Brazilians work in a hierarchical business way, therefore,
Decision-making is often reserved for the most senior people.
Talking about hierarchical management, the job functions, scope of responsibility,
and reporting relationships are clearly defined and strictly followed. That is a
reason why foreign managers can face two different ways to do business
depending on the size of the company, and we need to understand the importance
of each persons distinct role within the organization. In big companies, supervisors
consider inappropriate for them to consult with lower-ranking individuals when
decision-making, while in small companies, the boss takes on a parental role, and
his objective is to guide their employees and help them achieve the goal. When

empowered and encouraged to do so, Brazilians can be extremely creative and

work well in teams.
Nowadays Brazil remains as a country that is cautious in its business dealings,
although intercultural tolerance and readiness for change is apparent, but it
requires a considerable amount of thought, planning and evaluation. Brazilians
often suffer from the fear of exposure, embarrassment and failure, anyhow, they
perceive failure as a learning process that encourages confidence in future
ventures.
To start a meeting it is advisable to hire a translator, use local lawyers and
accountants for negotiations. Brazilians resent an outside legal presence. Often the
people you negotiate with will not have decision-making authority.
When having meetings it is important to be polite and have manners, in order to
make no one feel ashamed. If someone is exposed and shamed, they may likely
not participate again, and it will likely stem the flow of ideas and the participation of
the entire group, making the Brazilians partners feel insecure about the whole
process. In the other hand, the meeting could go really good, Brazilians feel
comfortable with a company they know, so they ask a lot of questions, and its
necessary for us to wait for our Brazilian colleagues to raise the business subject.
Brazilians are very concerned about priorities, so it is important to be conscious
that timescales and deadlines (mostly agreed between the parties) need to be set
well in advance and reiterated carefully, although they maybe will be viewed as
flexible if its necessary.
Some examples of the imperatives conducts are the Brazilian partners expecting
you to shake hands with everybody present on arrival, exchange business cards
written in Portuguese, and having a small talk before the meeting start. They also
expect you to wear a three-piece suit, which has an "executive" connotation for
them. And last but not least, it is important to greet women with a kiss.
There are not a lot of optional conducts for the foreign, but for the Brazilians
themselves, it is optional to arrive on time, and to follow an agenda, meaning that

they will cover all the issues, but not in the way they are ordered in that document.
They give you the chance of turning off your phone or keep it on but you may only
take urgent calls, which have to be informed in advance.
In addition, it is forbidden to wear the Brazilian flag colors in any combination of
clothing, also it is unaccepted to say Brazil is a developing or a third world country.
In addition, it is a good idea to avoid talking about Argentina, politics, poverty,
religion, and the Rain Forest.
Recently, Brazilians have significantly changed the level of alleged corrupt
practices, they have been creating a collective feeling that society must pressure
the institutions to combat corruption, yet foreign companies operating in Brazil
might find themselves dealing with potential dilemmas related to the shadow of
corruption, but experts think that organizations that publicly disclose their anticorruption policies will have societal goodwill, since individuals and organizations
are becoming more and more educated on the need for mechanisms to detect, to
prevent and to repress corruption in Brazil. After all, corruption affects Brazils
competitiveness and its ability to attract foreign investments, so its crucial for us to
never offer bribes, because foreign entrepreneurs in Brazil have been watched
closely recently and new laws have been created and reformed for them.

Analysis
In the end, we could refer Brazil as a very powerful growing market down in SouthAmerica, but to be exactly, Brazil is a low context country. Of course, there is a lot
of merchandising that explodes the Brazilian flag, but the people from that country
normally pretend to respect those symbols, and as I said, it is preferable to avoid
using any important Brazilian icon or symbolism in order to evade bad looks at you
given by the local people.
By the way, appearance is relevant in Brazil, so it is important to wear a dark
suitable attire and a good pair of shoes, and it is preferable to leave the jewelry at
home and do not look very expensive but still smart and conservative. For women
it is necessary to have the hair styled and the hands manicured.

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