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Country Report - Brazil. Team 1. Macro Description. Kent Copeland. Demographics. Population – 201,103,330 (5 th largest) Birth rate – 18.11/1000 pop. (108 th ) Niger – 51.08/1000 (224 th ) Monaco – 7.03/1000 (1 st ) United States – 13.83/1000 (151 st ). Demographics.
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Country Report - Brazil Team 1
Macro Description Kent Copeland
Demographics • Population – 201,103,330 (5th largest) • Birth rate – 18.11/1000 pop. (108th) • Niger – 51.08/1000 (224th) • Monaco – 7.03/1000 (1st) • United States – 13.83/1000 (151st)
Demographics • Death rate – 6.35/1000 pop. (155th) • Haiti – 32.31/1000 (226th) • UAE – 2.08/1000 (1st) • USA – 8.38/1000 (91st) • Age Categories (0-14, 15-64, 65+) • Brazil – 26.7%, 66.8%, 6.4% • USA – 20.2%, 67%, 12.8%
Demographics • Gender Composition • Brazil – 0.98 male/female • USA – 0.97 male/female • Very similar breakdowns across the different age categories.
Demographics Brazil has a labor force of 101.7 million (6th) Median age – 28.9 (8 years younger than USA) Increased mobilization of women Urban pop. – 86% Urban growth – 1.8%
Natural Resources • Bauxite • Gold • Iron ore • Manganese • Platinum • Tin • Uranium • Petroleum • Hydropower • Coal • Coffee • Cotton • Brazil nut • Timber • Rubber
Economic Environment • GDP (PPP) • Brazil - $2.01 trillion (10th) • USA - $14.12 trillion (2nd) • Inflation rate • Brazil – 4.9% • USA – (-0.3%)
Economic Environment • Unemployment rate • Brazil – 8.1% • USA – 9.3% • Growth rate • Brazil – (-0.2%) • USA – (-2.6%)
Economic Environment • Currency Regulations • No restrictions on any currency up to BRL 10,000 (USD $5,820) • Higher than BRL 10,000 – must be declared • Exchange rate – 1.7278 BRL per 1 USD on November 27, 2010.
Economic Environment • Financial System • Historically unstable • Increased reserve requirement • Ban on short selling • Credit Guarantee Fund (FGC) – provides capital funding to banks to preserve system
Economic Environment • Tax System • Overall rate – 34% • IOF tax – 4% • Stock Market • BM&F Bovespa • Market capitalization of $1.338 trillion (10th) • 375 companies listed
Economic Environment • Key Products • Coffee, soybeans, wheat, rice, sugarcane • Textiles, chemicals, lumber, iron • Steel, aircraft and vehicle parts • Business Segment (Ag, In, Ser) • Brazil – 20%, 14%, 66% • USA – 1%, 19%, 80%
Economic Environment Imports Exports • Machinery • Electrical and transport equipment • Chemical products • Oil • Automotive parts • Electronics • Transport Equipment • Iron ore • Soybeans • Footwear • Coffee • Autos
Economic Environment • Standard of living and housing • Urban areas are expensive • Wealthy live in lavish houses • Middle class live in small apartments • Poor live in favelas, slums. • 26% below poverty line • Poor infrastructure, water, sewage
History Claimed by Pedro Alvares Cabral (Portugal) in April 1500. Slaves imported in the 1600s Portuguese Empire headed in Rio de Janeiro from 1808-1821 Declared independence on September 7, 1822. Slavery abolished in 1888.
History Old Republic – 1889 to 1930 Populism – 1930 to 1964 Military dictatorship – 1964 to 1985 Democracy – 1985 to present
Current events Dilma Rousseff elected President. Member of the Workers’ Party. Plans to continue social programs.
Political System • Type of government • Federal republic • Constitution ratified on Oct. 5, 1988 • 26 states and 1 federal district • Bicameral legislature • Similar to the USA
Political System • Key Issues and Controversies • Gay marriage • Privatization • Capital punishment • Drug liberalization • Improving social welfare programs
Political System • State of Civil Liberties • Title II, Ch. I, Article 5 – free speech, religion, etc. • Bolsa Familia – Grants for education for poor • Torture and Afro-descendents rights • Manoel Mattos killed by gunmen
Political System • Risk Factors • Political Instability Index • Brazil – 5.4 • USA – 5.3 • Brazil’s score should decrease after the successful transition of power in 2010 election.
Legal System Derived from Portuguese civil law Based on Roman Codes Based on statutes Introduced a form of stare decisis No compulsory ICJ jurisdiction
Legal System Effectiveness is determined by enforcement Fine individuals for criticism of candidates 3 months before an election ($90,000) Brief summary of Brazilian business law: http://www.lexmundi.com/images/lexmundi/PDF/guide_brazil.pdf)
Geography Eastern South America Borders Atlantic Ocean Borders all South American countries except Chile and Ecuador Total area – 8,514,877 sq. km. (5th) USA is third with over 9.8 million sq. km.
Geography • Flat to rolling lowlands • Plains, hills, and mountains • Narrow coastal region • Arable land – Brazil 6.93%, USA 18% • Highest point • Brazil – Pico da Neblina 2,994 meters • USA – Mt. McKinley 6,194 meters
Climate • Six regions: • Tropical rainforest • Tropical wet and dry • Tropical monsoon • Semiarid • Humid subtropical • Subtropical highland
Climate • Temperatures • High along equator • Really high in Northeast • Cold in the South • Wide temp variations in Middle-West • Warm in Southeast
Climate • Rainfall • Amazon – 80 in., long dry season • Northeast – little rainfall, long droughts • Middle-West – 60 to 80 in., smaller dry season • Southeast – parts receive up to 175 in., no dry season • South – no dry season
Environmental Issues • Conditions • One of the most polluted countries in the world • 91 million tons of carbon emissions • About 1/10 the irrigated land of the USA • Shortage of freshwater due to improper mining techniques
Environmental Issues • Key Challenges • Deforestation of Amazon Basin • Illegal wildlife trade • Air and water pollution • Oil spills
Environmental Issues • Response • Increase law enforcement and land reform policy • Rehabilitate deforested areas • Increased public transportation • Rodoanel Mario Covas • Cleaner vehicles • Better monitoring and clean up
Key Advantages for Foreign Businesses One of the BRIC countries Increased mobilization of women Improvements in social welfare programs More citizens becoming highly educated Several ports, good infrastructure High GDP
Sociological and Cultural Aspects Adam Stone Kent Copeland
Family Structure • Parental Roles • Traditionally, women raised children, men earned income. • Currently, more dual-worker households • Men take on more household chores • Some men become insecure • Women become stable force • More share approach
Family Structure • Child rearing practices • Expected to contribute to family • Treated like adults • Taught value of interpersonal relationships • Nepotism is common
Family Structure • Living arrangements • Nuclear families have close relationships with extended families. • Very common to have more than one generation under one roof. • Adult children expected to live at home until marriage.
Class Structure • Categories and characteristics • Social classes historically divided • Workers’ Party been in power since 2002 • Bolsa Familia • Improve social welfare programs
Class structure • Presence of class barriers • Education and income • These two barriers are correlated • Whites and Asians are the highest class • Indians, pardos, and blacks are the lowest class
Class Structure • Status of Ethnic Groups • The darker the skin the lower the status • Lower class are typically maids, bus drivers, or street beggars
Class Structure • Ethnic Issues • Social apartheid • Blacks deprived of educational opportunities • Earn low wages • Live in low income neighborhoods • Spatial apartheid – separate building entrances • Youth gangs • Police violence
Class Structure • Gender Status and Issues • 70% of women in the workforce are in the service sector • Wage disparity • More women than men attend universities • Dilma Rousseff elected President
Religion Brazil USA • Roman Catholic – 73.6% • Protestant – 15.4% • Other – 3.6% • None – 7.4% • Roman Catholic – 23.9% • Protestant – 51.3% • None – 4%
Religion Rituals • Holy sacraments • Baptism • Confirmation • Communion • Penance • Anointing the sick • Matrimony • Priesthood • Seven Penitential Psalms • Liturgy for the Faithful Departed • Blessings • Processions • Exorcism
Religion • Rites • Roman Rite • Latin Rite • Lent
Religion • Taboos • Eating meat on the first day of Lent and Lent Fridays • Use of contraceptives • Sex with unclean women • Homosexuality • Celibacy of priests • Remarriage of divorcees