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Global Project 5

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Brazil’s government has a Chief of State: President Dilma Rousseff, Head of Government: President Dilma Rousseff. Brazil is a federal republic with 26 states and a federal district. The 1988 constitution grants broad powers to the federal government, made up of executive, legislative, and judicial branches. The president holds office for 4 years, with the right to re-election for an additional 4-year term, and appoints the cabinet. There are 81 senators, three for each state and the Federal District, and 513 deputies. Senate terms are 8 years, staggered so that two-thirds of the upper house is up for election at one time and one-third 4 years later. Chamber terms are 4 years, with elections based on a complex system of proportional representation by states. Each state is eligible for a minimum of eight seats; the largest state delegation (Sao Paulo's) is capped at 70 seats. This system is weighted in favor of geographically large but sparsely populated states. Brazil’s government is much like our government which is a good thing for the Ray’s security company that way we will know how to handle the government part. With the recent political and economic developments as stated in (thedialogue.org) “Brazil has risen to a very singular place on the world stage today,” assessed Joel Velasco of the Washington office of the Brazilian Sugarcane Industry Association. “The question is what does Brazil want to do with this stature?”
During a breakfast discussion on Tuesday, May 5, hosted by the Inter-American Dialogue, a small group of top analysts gathered to discuss recent political and economic developments in Brazil. The meeting was led by David Fleischer of the University of Brasilia. Paulo Sotero, director of the Brazil Institute at the Woodrow Wilson International Center for Scholars, and Joel Velasco offered commentary. Despite the country’s rising prominence in international relations and President Lula’s ongoing high approval rating—65 percent as of March of 2009—the Brazilian economy has not been immune to the effects of the global financial crisis. So far this year, exports have decreased by 41 percent, while consumer spending has shrunk by R$200 billion and tax collection is down in the first quarter by R$10.5 billion. This situation is further compounded by rising unemployment rates and dramatic declines in industry output. But recent figures paint a brighter picture. Although GDP growth in the fourth quarter of 2008 dropped to a low of -3.6 percent, annual GDP growth is up by 1.3 percent. And while the International Monetary Fund projected growth of -1.3 percent in 2009, that figure has since been adjusted by the Economic Commission for Latin America and the Caribbean to -0.5 percent. According to Fleischer, Lula’s reaction to the economic downturn was at first flippant, categorizing its effect on the Brazilian economy as “just a ripple.” But, he argued, the president has since taken the crisis far more seriously. For example, the president stymied auto sale declines by drastically reducing the IPI industrial production tax, effectively bolstering car sales which—in stark contrast to the U.S. auto industry—has resulted in a thriving industry, despite the economic climate. And although his popularity has dropped slightly since the onset of the financial crisis in late 2008, when it reached 70 percent, Lula continues to be the “most popular president in Brazilian history,” according to Sotero. His influence will surely be felt in the 2010 general elections where five candidates currently are at play. Turning to U.S.-Brazilian relations, Sotero cautioned against too much optimism noting that President Obama has a full agenda as it is. And while the two presidents have respect for each other, Fleischer pointed out that there are a few points of contention between the two governments. U.S. policy toward Cuba, Venezuela, and Bolivia, among others is a sore spot for Lula, as are the implications of Guantánamo Bay. But a focus on areas of potential collaboration—such as disarmament and climate change—could bring the two countries together in the future. Minster Counselor of Political Affairs at the Brazilian Embassy, Carlos Ceglia, added that Brazilians believe in dialogue and engagement and hope to take that role on an international scale.
Brazil’s tariffs for all other exporting nations must pay import tax. They also have to Industrialized Products Tax, Social Integration Program, Social Security Contribution, and Merchandise & Services Tax. The other fee and charges is Import Agent fee, SISCOMEX System Charge, Customs Clearers Syndicate. With all these taxes and imports duties and charges, Ray’s security company could have a problem with getting the supplies we need at a reasonable cost. As mention in the (dbbrazil.com) The National Monetary Council sets Brazil's exchange controls. The Central Bank, which is responsible for implementing this policy, has a number of departments that deal specifically with foreign investment and exchange. The Brazilian government has enacted several rulings aiming to reduce the complexity of its exchange market. Among these changes, rulings have been provided for the unification of the Brazilian exchange market, which is now no longer divided into different segments. This exchange market is under control of the Brazilian Central Bank and is ruled by the International Capital and Foreign Exchange Market Regulation – RMCCI. In order to simplify the exchange market the Brazilian National Monetary Council (CMN) and the Brazilian Central Bank (Bacen) have recently enacted two Resolutions (Resolution #3,844/2010 and Resolution #3,845/2010) which aims to consolidate the exchange market rules. As a general guideline, the RMCCI allows legal entities and individuals to purchase and sell foreign currency and perform international transfers in Brazilian Reais, regardless the nature of the operation, with no restriction with respect to the amount involved therein. A 1995 constitutional amendment terminated the distinction between foreign and local capital in general, but there are laws that restrict foreign ownership within some sectors, notably media and communications and aviation. Foreign investment restrictions remain in a limited number of other sectors, including highway freight (20 percent) and mining of radioactive ore. Foreign ownership of land within 150 km of national borders remains prohibited unless approved by Brazil's National Security Council. In October 2009, the Brazilian Chamber of Deputies approved legislation that would further restrict foreign ownership of land along Brazil’s borders and within the Amazon. The proposed legislation still requires passage by the Brazilian Senate, followed by presidential approval before it can become law. On August 23, 2010, the GOB issued a revised interpretation of Brazil’s 1971 land ownership legislation (Law 5709) strengthening existing language limiting foreign ownership of agricultural lands in rural municipalities. Depending on how local municipalities enforce them, the new regulations have the potential to disrupt purchases of farmlands by foreigners.
Brazil is generally open to and encourages foreign investment. It is the largest recipient of foreign direct investment (FDI) in Latin America, and the United States is traditionally the top foreign investor in Brazil. Since domestic savings are not sufficient to sustain long-term high growth rates, Brazil must continue to attract FDI, especially as the government plans to invest billions of dollars in off-shore oil, nuclear power, and other infrastructure sectors over the next few years.
According to (gwu.edu) In the new Brazil legal framework, the major piece of legislation is the Law 9.279, of May 14th, 1996, the quite known Brazilian new Patent Law. It comprises a complete code of industrial property and replaced the existing Law of 1971. It establishes the rules for patents, protection for models of utility, industrial design, trademarks, geographic indications; time-limits of protection for each one of them; voluntary and compulsory licenses, rights of the employers and employees; technology transfer and register at the official agency (Instituto Nacional da Propriedade Industrial – INPI); unfair competition; and criminal and administrative sanctions. In brazil they enforce on the intellectual property so that they can protect brand names, copyrights, patents, software, music, videos.

References
Dbbrazil.com.br. 2013. Deloitte Doing Business : Exchange Controls. [online] Available at: http://www.dbbrazil.com.br/show.aspx?idCanal=JHbAuQG9bBPQgRB4b/RKqA== [Accessed: 21 Sep 2013].
Globaledge.msu.edu. 2013. Brazil: Economy >> globalEDGE: Your source for Global Business Knowledge. [online] Available at: http://globaledge.msu.edu/countries/brazil/economy [Accessed: 21 Sep 2013].
Thedialogue.org. 2013. Inter-American Dialogue | Publication. [online] Available at: http://www.thedialogue.org/page.cfm?pageID=32&pubID=1942 [Accessed: 21 Sep 2013].
U.S. Department of State. 2013. Brazil. [online] Available at: http://www.state.gov/e/eb/rls/othr/ics/2011/157245.htm [Accessed: 21 Sep 2013].
Unknown. 2013. [online] Available at: http://www.gwu.edu/~ibi/minerva/Fall2000/Eugenio.Arcanjo.pdf [Accessed: 21 Sep 2013].

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