BRAZILIAN STEEL INDUSTRY18
Brazil and Mexico are two emerging markets that are becoming increasingly prevalent and influential on the international stage. These nations share many similarities. Both are newly industrialized developing economies, share similar cultural and societal norms and are considered the top economies of Latin America. Brazil and Mexico both have crumbling infrastructures in dire need of upgrades. Despite these similarities, both countries maintain their own unique culture, political landscape and business environments. This report will analyze the political, cultural and economic aspects of Brazil and Mexico and offer insight on which market would be the more desirable investment destination. It will also offer analysis on an industry for investment within the chosen country, as well as an implementation plan on how the investment should be approached. BRAZIL
The Federal Republic of Brazil is the largest nation in South America, with a population of 194.21 million and a land mass slightly smaller than the continental United States. Originally a Portuguese colony, its heritage is still reflected in its national language (Portuguese) and a predominantly Roman Catholic demographic (Brazil social classes, n.d.). It has gone through stages of republic and military rule since gaining independence in 1822, before a peaceful return to democracy in 1985. Its major cities include São Paulo, Rio de Janeiro, and Salvador. Since reforming as a federal republic, it has emerged as an economic and political powerhouse in the Latin American region. Brazil’s role on the international stage is flourishing, as evident by their hosting of the 2014 FIFA World Cup and the 2016 Rio Olympic Games. Political Analysis
The current head of the Brazilian state, President Dilma Rousseff, is the country’s first woman to hold office. As the leader of the center-left Worker’s Party, she has signalled her administration’s intentions to continue to liberalize trade and implement stabilizing macroeconomic policies (Datamonitor, 2011a). Through these measures, Brazil has earned its recognition and designation as part of the rapidly rising BRIC (Brazil, Russia, India, and China) economies. Economic reforms under Rousseff’s government have included removing trade and investment barriers, encouraging private participation and investments in infrastructure (Datamonitor, 2011a). As a result, the country has prospered, enjoying stable GDP growth, rising incomes and a growing middle class. Brazil has successfully leveraged its size, influence, geography and resources in order to drive industrial and agricultural growth and development. It is a leader in the Union of South American Nations (União de Nações Sul-Americanas, or Unasul), which is mandated to promote regional integration. It is also a major player in the Southern Common Market (Mercado Comum do Sul, or Mercosul), a collective of Brazil, Argentina, Paraguay and Uruguay. Its purpose is to promote inter-regional trade amongst its members. Brazil continues to be challenged by high levels of corruption in government and business, as well as violent crimes and drug fuelled gang wars. The World Bank’s rule of law indicator, which offers a quantitative measure of public confidence in Brazil’s law enforcement and legal system, has placed Brazil in the 49.5 percentile in 2009 (Datamonitor, 2011a). High ranking government officials have been impeached due to accusations of corruption. High levels of crime and gang activity are prevalent in favelas and slums outside of major cities. This can be attributed to a high income disparity and one of the most uneven distributions of wealth in the world...