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PESTEL ANALYSIS OF

BRAZIL

Ankur P (12)

Annapurna C (13)

Ashish K (20)

Himanshu M (41)

Prani t B (55)

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BRAZIL

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History of Brazil Following three centuries under the rule of Portugal,

Brazil became an independent nation in 1822. By far thelargest and most popular country in South America,Brazil overcame more than half a century of military

intervention in the governance of the country when in1985 the military regime peacefully ceded, power tocivilian rulers. 

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Cont… 

a population of over 201 million, with a populationgrowth rate of 1.19%.

shares a border with almost every other country inSouth America.

Brazil is the only Portuguese-speaking LatinAmerican country

Brazilians are known throughout the world for theircreativity, their ability to learn, to adapt to newcircumstances, and to incorporate technicalinnovation.

the third largest democracy (after India and theUnited States).

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POLITICAL

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POLITICAL

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Government and Political Figures

Conventional Name: Federative Republic ofBrazil

Government type: Federative republic

Capital: Brasilia

Day of Constitution: 5 October 1988

Legal system: based on Roman codes.

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Four political parties

 Workers' Party (PT),

 Brazilian Social Democracy Party (PSDB),

Brazilian Democratic Movement Party (PMDB),and

Democrats (DEM).

 Almost all governmental and administrativefunctions are exercised by authorities andagencies affiliated to the Executive.

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Political system

The Brazilian Federation is the"indissoluble union" of three distinctpolitical entities: the States, theMunicipalities and the Federal District.

They, are the "spheres of government". The Federation is set on five

fundamental principles: sovereignty, 

citizenship, dignity of human beings,the social values of labour and freedomof enterprise, political freedom.

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India  – Brazil relation

The President of India,Pratibha Patil withBrazilian President Luiz

Inácio Lula da Silva in April 2009. India andBrazil enjoy strongbilateral relations which is

clearly reflected invarious internationalforums such as IBSA.

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ECONOMICAL

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Inflation forecast

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Brazil is the largest national economy in Latin America,the world's sixth largest economy at market exchangerates and the ninth largest in purchasing power parity (PPP), according to the International Monetary Fund and

the World Bank. Brazil has a free market economy withabundant natural resources.

The Brazilian economy has been predicted to becomeone of the 4th largest in the world in the decades tocome, the GDP per capita following and growing.Its

current GDP (PPP) per capita is $10,200, putting Brazilin the 64th position according to World Bank data.

It has large and developed agricultural, mining,manufacturing and service sectors, as well as a largelabor pool

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Macro-economy analysis

Currency unit  – Brazilian Real (BRL=US 0.56)  SDR exchange rate for Brazilian Real

SDR/Unit = 0.30

Unit/SDR = 3.296230Major Trading Partners: Imports: US 18.3%, Argentina 8.9%, Germany 8.1%,

China 5.9%,Nigeria 5.6%, Japan 4.6% (2009) Exports: US 20.8%, Argentina 7.5%, Netherlands

6.1%, China 5.6%,Germany 4.1%, Mexico 4% (2008)

GDP - Purchasing Power Parity $1.492 trillion (2009est.)

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PROBLEMS OF BRAZIL

POVERTY

CRIME

LOW EDUCATIONPERCENTAGE

 INFANTMORTALITY

RACIALINEQUALITY(BLACKPPL)

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SOCIAL

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SOCIAL

Demographics

Educational Levels

Distribution of Income

Social Mobility

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OVERVIEW Irrigated land - 26,560 sq km (1998 est.) Natural hazards - recurring droughts in

northeast, floods and occasional frost in south . Population -190 MILLION(2008 est.) Age structure -0-14 years: 26.1% (male 24,789,495/female

23,842,715)15-64 years: 67.9% (male 62,669,392/female

63,719,631)65 years and over: 6% (male 4,549,552/female

6,542,009) (2005 est.)

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continued

In 2010, the illiteracy rate was 9.48%

Roman Catholicism is the country's

predominant faith. Brazil has the world'slargest Catholic population.

The official language of Brazil is Portuguese

Currency of brazil is Brazilian real

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Style and life

largest metropolitanarea in Brazil

São Paulo,Rio de Janeiro, andBelo Horizonte — 

all in theSoutheastern Region.

S b d hi d

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Samba and hip danceare the most famous,in the world.

Brazilian Ballroomdance is also verypopular.

Carnival celebrationsare believed to haveroots in the paganfestival of Saturnalia,

which, adapted toChristianity

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Games The most popular sport in

Brazil is football (soccer).

The Brazilian nationalfootball teamis rankedamong the best in theworld according to the

FIFA World Rankings,and has won the WorldCup tournament a recordfive times

On 2 October 2009,Brazil was selected tohost the 2016 OlympicGames, the first to beheld in South America

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TECHNOLOGICAL

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Technological Factors 

 Advantage of Technology

In terms of Economies of Scale

New Discoveries & Innovations

Speed & Cost of Technology Transfer

Rate of Obsolescence

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CONTINUED….. 

There are about2,500 airports inBrazil

 São Paulo-GuarulhosInternational Airport,near São Paulo, is thelargest and busiestairport of brazil.

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CONT…. 

Brazil's most notable technological hubs are theOswaldo Cruz Institute, the Butantan Institute,

the Air Force's Aerospace Technical Center, theBrazilian Agricultural Research Corporation andthe INPE.

The Brazilian Space Agency has the most

advanced space program in Latin America, withsignificant capabilities in launch vehicles, launchsites and satellite manufacturing.

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CONT… 

Uranium is enrichedat the ResendNuclear Fuel Factory to fuel the country'senergy demands andplans are underway tobuild the country's

first nuclearsubmarine.

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Environmental

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Environmental

The country has abundant reserves of natural resourcessuch as iron, copper, nickel, manganese or tin.

Despite having an estimated gold reserve of 2,000 tonesthe country accounts only for 2.5% of the globalproduction and many regions are still unexplored.

Recent development includes the construction of twonew railways connecting central Brazil to ports in the

states of Rio de Janeiro and Bahia, and the constructionof Acu Super port, a port and industrial complex one anda half times the size of the island of Manhattan thatshould be completed by 2012.

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LEGAL

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LEGAL

• The Brazilian legal system is based on Civil Law tradition andthe Federal Constitution, in force since October 5th, 1988, isthe supreme rule of the country.

• The 26 federate states have powers to adopt their own

Constitutions and laws; their autonomy, however, is limited bythe principles established in the Federal Constitution.

• Federal law also has the exclusive authority to rule on matterssuch as expropriation, energy, telecommunications,insurance, foreign trade, nationality and citizenship.

•

Besides the Federal Constitution, the main legal documents inBrazil are the Codes. The most important are the Civil Code,the Tax Code, the Penal Code and the Civil Procedure Code.

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Benefits of setting up Business inBrazil  Rural 

‐ 

urban migration and the spread of modern agricultural methods are

bringing an increasing proportion of the population into the market for

manufactured goods.

The Brazilian public is highly receptive to foreign brand names, which can

demand a premium price over competing domestic products.

 Has a democratic government.

 Has the largest healthcare market in Latin America.

 Has environmental industries that are valued at US$ 5 Billion.

 Has a modern telecommunications and banking system.

 Is one of the so called BRIC groups.

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Future scenarios 

Brazil's macroeconomic prospects are good .

Average real GDP growth is forecast at 3.7% in

2007-2011. By 2015, Brazilian households are expected to have

an annual disposable income over US$15,000.

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CONCLUSION

Brazil is a developing country

South America's leading economic power

and a regional leader. Highly unequalincome distribution remains a pressingproblem

Its famous for carnival festival and coffee.

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  hank you