Global Business Cultural Analysis: Brazil
Liberty University
BUSI 604

Abstract
This research paper analyzes the effect of Globalization on the country of Brazil, and how its economy compares to other South American countries and the world. This review will provide factual evidence of the integration of the Brazilian products internationally, and how its economy has evolved to compete in the international markets. A Comparative summary of evidence will be provided in this analysis between the business culture of Brazil, North American, Central America, the Caribbean, and other South American countries economic framework. The framework of the origins of Brazil, and to the progression of the nation into one of the top economies; will be discussed in this assignment. A small glimpse of the picturesque country will be provided in the form of pictures, to give the reader a greater ability to visualize this country and its inhabitance. The major elements and dimension of culture is reviewed, and these dimensions are; what the major elements and dimensions of culture are in this region; how these elements and dimensions are integrated by the locals conducting business in this region; how these cultures and dimensions compare with U.S. cultures and business; and what the implications are for U.S. businesses that wish to conduct business in that region. This paper will review some of the desires of Brazil’s government to be one of the world’s leading sports nations, which has brought the country important sporting events for worldwide exposure.

Global Analysis of Brazil
This paper is a Global Analysis of Brazil, to research and answer the four questions to produce an insightful of Latin American economic leader. I have heard a lot about Brazil these past few years, especially because the country hosted the World Cup Soccer tournament, and will host the 2016 Olympics. The sport of soccer is well known in Brazil, and everyone has heard of Brazil’s soccer team at every World Cup event. The thing about Brazil is that the beaches and the Amazon are places we have all heard about. The country’s economy is something most of us has not heard about, but it’s becoming larger, and is becoming a major player on the international economic stage. This paper will look into the natural resources of Brazil, plus answer the four research questions assigned to the class. The four questions are:

• What are the major elements and dimensions of culture in this region?

• How are these elements and dimensions integrated by locals conducting business in the nation?
• How do both of the above items compare with US culture and business?

• What are the implications for US businesses that wish to conduct business in that region?

The Major Elements of Dimensions of Culture
The culture of Brazil was influenced by the Portuguese, which colonized Brazil and helped change the indigenous language and culture. The initial attempt of colonization occurred after 1820, by attempting to fill the demographic vacuum on the nation’s frontiers in the city of Parana (Katzman, 1978). The Portuguese culture still has a distinct influence on the people and culture today. Some of the countries culture parallels the United States, with its past history of discrimination of gender and race. Culture is something that’s learned and not inherited; therefore it’s a continual learning process (Heinzmann & Netto Machado, 2014). For Brazil to move forward from racism, the reprograming through learning has to be a priority for their citizens. Brazil government has been making strides in the culture of its citizens towards discrimination, but it will be some time before true equality is experienced. Brazil’s government, which has also been aiming at creating employment for the poor, less qualified and less educated workers is somewhat similar to the Polyanian framework. The Polanyian framework; is a framework that promotes an understanding of the economy as one that includes all phenomena related to interdependencies amongst human beings and with their natural environment (Lemaître & Helmsing, 2012). The Polanyian framework is somewhat complex, but the main purpose of the framework is to analyze the different principles of business economics.

Geographical
Brazil is located in South America, and is the fifth largest country in the world. The beautiful picturesque beaches, small tropical islands, music filled carnivals, and small towns located along its coastline are breath taking. Brazil’s tourist attractions consist of beautiful waterfalls, wetlands filled with many types of wildlife, and the magnificent untouched wilderness of the Amazon rainforest, which is still home to several isolated tribes that still live without contact with the rest of the world.

Indigenous People
The indigenous people of Brazil are the Brazilian Indians. There are about 240 tribes living in Brazil today, totaling around 900,000 people, or 0.4% of Brazil’s population (Survival International, 2014). These indigenous Indians have experienced genocide and racism by their government and oppressors for over 500 years. Brazil does not recognize tribal land ownership. The largest tribe today is the Guarani, numbering 51,000 (Survival International, 2014). Most of the indigenous people’s lands have been taken by the government, or the classification of the lands converted into reserve lands.

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Depiction of the state of Parana in Brazil was colonized by the Portuguese (Katzman, 1978).

The Development of Culture and Sports
Sports in culture can have an incredible effect on a community. In Brazil, the popular national sport is soccer (Football), and most national stars become famous through soccer. The World Cup of 2014 was held in Brazil, and the pictures show many of the people celebrating in the streets Brazil. The world was watching this country as it provided the excitement of the games. The 2016 Olympics will also be held in Brazil, and again the world will be watching in amazement as the different countries compete for gold.

The Elements and Dimensions Integrated by Locals Conducting Business
There are many elements of dimension related to locals conducting business in Brazil. In the 1990s the Brazilian government liberalized trade, privatized state-owned enterprises, deregulated domestic markets, and helped create a South American Common Market (MERCOSUL) (Helfand & De Rezende, 2004). The Brazilian economy transitioned from a closed economy to an open economy, which transitioned the economy to macroeconomics on the agricultural sector. Brazil has evolved over time to be an emerging economy in the international markets, and is considered to be an emerging market economy (EME) ((Carrasco & Williams, 2012). The structure of business in Brazil mirrors a centralization structure of organization, which is a top to bottom hierarchy in business. It defines the clear procedure for authority in the organization. The government liberalization of trade and the deregulation of agricultural markets, in addition to making changes in the rural credit and support price policies, as part of an overall strategy to fight the threat of hyperinflation (Helfand & De Rezende, 2004). These changes in government policies continue to create greater advantages for Brazil’s economy against it South American rivals.

Primary Imports of Brazil
The primary imports of Brazil, and the countries that are its greatest influential suppliers. China and the US are the largest importer to Brazil, which has economic ties through trade and overseas businesses. The largest importer to Brazil in 2012 was China which exceeded $75 billion, and they have both signed an agreement to finance more trade deals with their own currencies (Thomas, 2013). Copper ore, Cathode, and wire are the common export of Brazil, with copper ore exports to Germany and China as their main buyers (Guerra, 2014).

Resources Necessary for Brazil’s economy
There are an abundance of resources in Brazil; however, its energy consumption is very high, so the need for new sources of energy is never ending. Brazil’s apparent import consumption reached 13.8%, compared with 10.3% in the first quarter of 2013 (Peroni, 2014). In the first three months of this year, 62.4% of flat steel imports into Brazil came from China (Peroni, 2014). From my research, flat steel and natural gas was the primary imports into Brazil.

The SWOT Analysis
Strengths
President Luiz Inácio Lula da Silva’s ambitious plans for investment should unlock great opportunities, and with the successful bid to host the 2016 Olympic Games in Rio de Janeiro, just two years after the FIFA World Cup will be held. President Lula’s broad focus on the international market, and is changing the culture of the Brazilian people. The focus on an open economy instead of a close economy has created greater wealth for the country.
Weaknesses
Imposed tariffs, taxes, and unpredictable currency have created trade barriers for countries wishing to do business with Brazilian companies. The nominal exchange rate has changed appreciably, particularly after Brazil's 1994 introduction of the real to replace the cruzieiro as its currency, so the real rate has been somewhat steadier (Bahmani-Oskooee, Harvey, & Hagerty, 2013).
Threats
The complexity of the government instilled taxation has significant negative results to the labor market in Brazil. Future government takeover of the financial institutions of the country can also have negative effects on the economy. The exchange rate has often been thought to be volatile and negatively affects trade, but economics has found that this is not always true. Brazilian exports of agricultural products are particularly harmed, while U.S. machinery imports are not impacted at all (Pompelli & Pick, 1990). The Corruption and gang crime represent the greatest threats to the businesses in Brazil and businesses internationally.
Energy Consumption
There is a great abundance of resources in Brazil; however, its energy consumption is very high, so its need for renewed energy sources are progressively sought after by the government. Brazil’s apparent import consumption reached 13.8%, compared with 10.3% in the first quarter of 2013 (Peroni, 2014). In the first three months of this year, 62.4% of flat steel imports into Brazil came from China (Peroni, 2014). From my research, flat steel and natural gas was the primary imports into Brazil.

How do both of the above items compare with US culture and business?
The US culture is much more advanced than Brazil, in regards to strength of economy where the US is ranked second and Brazil is ranked 9th. Leading the transformation of traditional holistic ideologies to individualistic ones, Brazilian society is appraised as a dual culture existing under a constant tension between the demands of social hierarchy and predatory individualism (Neiva, 2000).

Photographs of Brazil
They say that a picture stays a thousand words, so these are pictures of places in Brazil that can give the reader a visual view of the country.

Image 1.
Retrieved from http://www.touropia.com/tourist-attractions-in-brazil/
The Teatro Amazonas or Amazon Theatre is an opera house located in Manaus, which is the heart of the Brazilian Rainforest.

Image 2.
Retrieved from http://www.touropia.com/tourist-attractions-in-brazil/
One of the great natural wonders of the world, Iguacu Falls is situated on the border between Brazil and Argentina. The waterfall system consists of 275 falls along the Iguazu River.

Image 3.
Retrieved from www.touropia.com/tourist-attractions-in-brazil
Fernando de Noronha is a beautiful archipelago with beaches, landscapes and wildlife, and is located 220 miles off the northern coast in Brazil. Image 4.
Retrieved from www.touropia.com/tourist-attractions-in-brazil
The Maracanã Stadium is one of Rio’s most important landmarks. This was once the largest capacity stadium in the world, which had a capacity of nearly 200,000 people when it opened in 1950. Football (or soccer) are primarily played at this stadium, and it is the most important sport in Brazil. Image 5.
Retrieved from www.touropia.com/tourist-attractions-in-brazil
This is the most popular statue in Brazil, and it is Perched atop a 2,330 feet peak of Corcovado Mountain. The statue of “Cristo Redentor” (Christ the Redeemer) stands with arms outstretched, gazing serenely out over the city. The concrete and soapstone statue is considered the largest statue designed in the genre in the world.

Infrastructure

The country possesses well developed agricultural, mining, manufacturing and service sectors. More development towards greater infrastructure is being driven by public and private partnerships, whereas the Brazilian construction industry are moving towards more government investments. Private sector interest in the construction are slowly increasing, and it evident from the public offerings on their stock exchange. The construction industry is the best investment in Brazil, only because of the build-up for the Word Cup and the Olympics.

What are the implications for US businesses in that region?

Brazil continues to emerge as a major world economic player, and it has enjoyed both increased trade and capital inflow-fueled currency appreciations. The exchange rate of Brazil has often been thought to be volatile and negatively affects trade, but economics has found that this is not always true. Brazilian exports of agricultural products are particularly harmed, while U.S. machinery imports are not impacted at all (Pompelli & Pick, 1990). Products with small trade shares are more likely to respond to increased uncertainty than are major exporters. Firms that wish to maintain stable prices in foreign markets must exhibit market power with a system of variable price discrimination (Pompelli & Pick, 1990).

Economic focus of Brazil.
The consumption of energy in the form of electricity, and also the expansion of installed generator capacity. This is formulated to seek a position on the real prospects of balance or imbalance between supply and demand of electrical energy for Brazil’s economic future.
The developments in Brazil’s economy over the years has included some elements that promise a more favorable and stable financial future. Building a more suitable economic growth is encouraging for Brazil, as it embarks to be a bigger player in the international market. The author’s main focus was the maintenance of suitable electricity for Brazilians, and its impact on economic growth (de Castro, Rosental, & Bueno, 2009).

Slavery
Brazil’s past economy is built on the backbone of slavery and is somewhat linked to the United States. The mixture of race in Brazil are primarily Afro-Brazilians and people of that ancestry account for at least 45 percent of the Brazilian population. The slave trade went through the Caribbean and through the America’s through South American and North America. The US and Brazil both imported a large number of slaves, and indentured servants, which added to the mixing of nationalities and influencing the development of the Brazilian culture. The systematic policy of whitening prevailed during the end of the nineteenth century with the abolition of slavery in 1888, and the era of the first republic in 1889. Mixing of the races was well advanced so a policy of whitening of the Brazilian race was initiated (Agier, 1995).

Religion of the Brazilian people
The Roman Catholic religion was first brought to Brazil by the Portuguese people, and it is still the main religion practiced today.

The US and Brazilian financial model.
The use of a variety of investment theories, which also include recent development theories, and uses this data to calculate and devise a theory of an investment plan of boosting the Brazilian economy. There are still some political and economic instabilities which caused a reduction in Brazil’s credit volume for investment companies. The continual increases of Brazil’s public policies was instituted by the government to not only boost its creditability, but also to boost trust by international investment companies (Ferreira Braga Tadeu & Tasso Moreira Silva, 2013).

Tariffs Associated with Foreign Investors.
Taxes in Brazil are subject to congressional approval. For imported goods, the contributions would be calculated over the import value increased by import duties and state value-added tax due on the import transaction (Weiss & Jeffrey, 2004).

Crime Crime is a serious threat to security in Brazil, and it primarily from organized crime. The risks a usually from drug trafficking, which is largely controlled by gangs in the two capital cities of Sao Paulo and Rio de Janeiro. The influences of these drug traffickers has grown to the extent that in many parts of they retain parallel control of power. The closeness to Columbia attracts more attention for drug trafficking problems. Many of the poor South American countries are destabilized by drug trafficking, and drug wars.

Foreign Direct Investment

Foreign Direct Investment (FDI) is what companies use to invest in property in another country. An organization becomes more involved in the global community by purchasing land or other resources in another country (Satterlee, 2014). Creating a climate for outside investments, is something countries do to instill security for investors. Failure to repay loans are some of the problems that might occur with foreign investment companies.

Conclusion
The paper attempted to show Brazil in the globalization world, and about the people and the culture. The information about Brazil is extensive, so the information provided does not do justice to the great nation. The US and Brazil are trade partners, and continues to grow as partners by signing new agreements for further advancements of each country. The ultimate business success between the two nations, which has similar history of colonization, religious beliefs, and slave ownership, will be continually progressing towards equality of their citizens, and the prosperity of their two nations. The United States continues to lead the world in GDP, but countries like China and Brazil are not far behind. The extensive amounts of natural resources are almost never ending, especially with their large rainforest that still has not been fully explored. The FIFA World Cup was held in Brazil over the summer, and from fans perspective, the event went well with only minor glitches. The Brazilian are also hosting the 2016 Olympic games, and it is almost unheard of that a country hosts both the World Cup and the Olympics in a short period of time. This exposure on the world stage should bring more business and tourist to the country. The global focus from their current government is paying dividends for the country, but they should not neglect the social issues that are still prevalent with the citizens of Brazil.

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