Providing Services to Brazil
- an introduction -
October 18, 2012

Contents
 Brazil’s Significance
 Foreign Trade
 Foreign Direct Investment
 Doing Business in Brazil
 Political & Business Environment

Contents
 Brazil’s Significance
 Foreign Trade
 Foreign Direct Investment
 Doing Business in Brazil
 Political & Business Environment

Brazil is an economic powerhouse and is
quickly surpassing some European countries
Rank Country GDP 2011 2012 GDP Rank Country GDP 2011 Per Capita Rank per
US$ bn Growth Est. PPP US$ bn PPP US$ capita PPP
1 U.S.A. 15,094 2.1% 1 U.S.A. 15,094 48,387 6
2 China 7,298 8.2% 2 China 11,300 8,382 92
3 Japan 5,869 2.0% 3 India 4,458 3,694 129
4 Germany 3,577 0.6% 4 Japan 4,440 34,740 24
5 France 2,776 0.5% 5 Germany 3,099 37,897 17
6 Brazil 2,493 3.0% 6 Russia 2,383 16,736 53
7 U.K. 2,418 0.8% 7 Brazil 2,294 11,796 75
8 Italy 2,199 -1.9% 8 U.K. 2,261 36,090 22
9 Russia 1,850 4.0% 9 France 2,218 35,156 23
10 Canada 1,737 2.1% 10 Italy 1,847 30,464 29
11 India 1,676 6.9% 11 Mexico 1,662 14,610 63
12 Spain 1,494 -1.8% 12 S. Korea 1,554 31,714 25
13 Australia 1,488 3.0% 13 Spain 1,413 30,626 28
14 Mexico 1,155 3.6% 14 Canada 1,396 40,541 12
15 S. Korea 1,116 3.5% 15 Indonesia 1,125 4,666 122
Source: IMF (International Monetary Fund)

Brazil’s size provides it with natural
resources and a large consumption base
Rank Country Area km² Rank Country Population
(million) (million)
1 Russia 17.1 1 China 1,347
2 Canada 10.0 2 India 1,210
3 U.S.A. 9.8 3 U.S.A. 314
4 China 9.6 4 Indonesia 238
5 Brazil 8.5 5 Brazil 192
6 Australia 7.7 6 Pakistan 180
7 India 3.3 7 Nigeria 162
8 Argentina 2.8 8 Russia 143
9 Kazakhstan 2.7 9 Bangladesh 142
10 Sudan 2.5 10 Japan 128
11 Algeria 2.4 11 Mexico 112
12 Congo 2.3 12 Philippines 92
13 Greenland 2.2 13 Vietnam 88
14 Saudi Arabia 2.1 14 Ethiopia 84
15 Mexico 2.0 15 Egypt 82
Sources: IMF (2012 pop.) and CIA

Brazil is on par with China and USA on
Brazil’s Significance
three power-driving attributes
Mexico
Countries with population
Countries with area
> 100 million
> 7 million km² Australia Bangladesh
Russia Pakistan
Canada Indonesia
Brazil
Nigeria
USA
India
China
Japan
Germany France
Countries with GDP
United Kingdom
> US$ 2 trillion
Italy

Contents
 Brazil’s Significance
 Foreign Trade
 Foreign Direct Investment
 Doing Business in Brazil
 Political & Business Environment

Brazil has a total trade deficit of US$19 bn
caused by increasing imports of services
US$ 19 bn
surplus
US$ 38 bn
deficit
Sources: WTO and UNCTAD

The economy is diversified, with China
playing an increasing role in trade
Leading Markets 2011 % of total Leading Suppliers 2011 % of total
China 17.3 USA 15.0
USA 10.1 China 14.5
Argentina 8.9 Argentina 7.5
Netherlands 5.3 Germany 6.7
Major Exports 2011 % of total Major Imports 2011 % of total
Ores and Minerals 17.3 Fuel and Oil 18.5
Oil and Fuel 12.1 Mechanical Equipment 14.9
Transport Material 9.8 Electrical and 11.7
Electronical Equipment
Soybeans & Products 9.4
Motor Vehicles and Parts 10.0
Source: Secretaria de Comércio Exterior, MDIC

Brazil is a net importer of services, having
bought US$25 bn in business services in 2011
Other business services is defined as professional and technical services (legal,
advertising, consulting, accounting, R&D, etc.)
Source: UNCTAD

How imports of services compares with
other BRICs
Import of Services – 2010, in US$ millions
Brazil China India Russia
Total services 62,592 193,321 116,842 73,682
Transport 11,339 63,257 46,422 12,058
Travel 16,422 54,880 10,628 26,587
Other services 34,832 75,184 59,792 35,038
Communications 271 1,137 1,194 2,100
Construction 6 5,072 991 4,382
Insurance 1,529 15,755 5,004 1,037
Financial services 1,679 1,387 6,787 1,720
Computer and information 3,505 2,965 2,531 1,884
Royalties and licence fees 2,850 13,040 2,438 5,066
Other business services 20,874 34,310 39,678 15,796
Personal, cultural and recreational services 1,271 371 467 1,000
Government services n.i.e. 2,846 1,147 702 2,053
Source: UNCTAD

Contents
 Brazil’s Significance
 Foreign Trade
 Foreign Direct Investment
 Doing Business in Brazil
 Political & Business Environment

FDI into Brazil has been increasing sharply
as investor confidence is greater than ever
FDI stock is the value of the share of their capital
FDI inflows comprise capital provided by foreign
direct investors. FDI includes equity capital, and reserves (including retained profits) attributable
to the parent enterprise, plus the net indebtedness
reinvested earnings and intra-company loans.
of affiliates to the parent enterprises.
Source: UNCTAD

Contents
 Brazil’s Significance
 Foreign Trade
 Foreign Direct Investment
 Doing Business in Brazil
 Political & Business Environment

Doing Business in Brazil
 Portuguese is the language spoken in Brazil (not Spanish!)
 Relationships and face-to-face contacts are very important
 Taxation laws and fiscal issues are complex and change
frequently
 Labor laws and social costs are burdensome and favor the
employee
 The business culture is sophisticated and westernized
 Laws and contracts are respected and enforced
Source: Enosis Global

The South-East region has most of Brazil’s
Brazil’s Significance
wealth creation, driven by São Paulo state
A
8% 5%
13% B
28% 45%
A: North E
56% B: North-East
42% 18% C: South-East C
11% D: South
7% E: Center-West D São Paulo
17%
14%
19%
7% 9%
Population GDP Area
Source: IBGE -2010

Contents
 Brazil’s Significance
 Foreign Trade
 Foreign Direct Investment
 Doing Business in Brazil
 Political & Business Environment

Brazil’s government structure is very similar
to the Unites States’
 Official name: Federative Republic of Brazil.
 Form of state: Federative republic.
 The executive: The president, who is elected for a term of four years,
chooses a cabinet, which s/he heads .
 Head of state: Elected president, who controls the budget.
 National legislature: Bicameral national Congress: 81-seat Senate (the
upper house) with representatives of 26 states, plus the federal district of
Brasilia; 513-member directly elected Chamber of Deputies (the lower
house). The 26 states and the district of Brasilia each has a legislature.
 Legal system: Each state has its own judicial system; the country has a
system of courts for dealing with disputes between states and matters
outside the jurisdiction of state courts.
Source: EIU

Despite a strong democracy, businesses
suffer from a burdensome tax system
 National government: Dilma Rousseff is Brazil’s first female President,
having succeeded in January 2011 the very popular Luiz Inácio Lula da
Silva.
 National elections: Municipal elections every four years, with the latest
happening now in October 2012; presidential, congressional and state
elections every four years, with the next due on October 2014. A
consolidated democracy has led to peaceful transitions and continuity of
sound macroeconomic policies.
 Business Environment: Modest improvements, mainly driven by the
consolidation of macroeconomic stability and better domestic financing
conditions, will keep the country’s position broadly stable in the global and
regional rankings. But the tax system will remain complex and burdensome,
the pension system will weigh on public-sector finances and vested interests
will continue to distort productivity gains.
Source: EIU

Contact information
James P. Locke
CEO
Enosis Global LLC
+1-302-235-3686
jlocke@enosisglobal.com