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Brazil is currently competing with developing countries such as South Africa, India and China when it comes to economic growth and development. Through globalization, the capital flow became much easier while investments were drastically increased. The Brazilian Central Bank (BACEN) is the overall in charge of the monitoring of foreign exchange transactions regardless of the inflow and outflow of proceedings, as they are following the guidelines stated by the Brazilian Monetary Council.
Brazil has made up to the top list of developing countries over the past decades. In the past ten years, 40 million Brazilians are escaping poverty, resulting to a boost in the middle class bracket of the country. What’s more interesting is the rapid manufacturing growth, which has led international investors from different countries all around the world.
Because of this notable growth levels, an air of optimism has been developed. If this economic growth continues to develop, more global investors will seek to move their operations in Brazil, which will directly boost the Foreign Direct Investment (FDI). However, foreign Investors are advised to note these possible complications that they may encounter along the way.
Brazil is a Developing Nation
Despite its numerous economic growth throughout the years, Brazil is still an underdeveloped nation. Though it is sometimes praised for its ‘high growth levels’, several areas in Brazil are still under the process of development and certain considerations must be given to address that matter.
Unfortunately, the rate of economic growth in Brazil didn’t reflect with the laws and regulations presented before foreign investors can open their business in the country. In fact, Brazil is ranked as 126th out of the total 183 countries based on the World Bank’s annual global report, stating that starting business in Brazil is a lot easier because the government is not too strict when it comes to the issuance of construction permits, registration of property, payment of taxes and so forth. Approximately, there are around 13 procedures that you need to undergo and all of these can be done in a matter of 119 days. On the other hand, construction permits take up to 17 procedures which will cover 469 days before it can get notarized.
Like any other country, corruption is also present in Brazil. Fortunately, the government has established a stiffer custodial sentencing which will greatly help clear up this matter.
As economy starts to boom in Brazil, prices of products and services offered in the country are also starting to level up. Therefore, you need to invest more to be able to attain more in Brazil.
Unfortunately, Brazil is not as hi-tech as you think they are. The local government is currently addressing the issue and large corporation are even starting to pledge for the development of the economy. In fact, Microsoft is said to invest a whopping $100 million in the next years.
Amidst these challenges, investors, whether local of foreign, should note the potential advantages that Brazil has to offer. With proper knowledge and skills, your business venture will surely progress together with the fast paced economic growth of Brazil.
Category : Business
Name : Anne Date of Post : 2017-07-18 05:55:37