...University – San Antonio International Management MGMT 5326-SA01 Dr. W. Chukwuma Achebe Richard D. Stephens Jr. September 6, 2013 Abstract As the world becomes increasing dependent on information technology (IT) products and services, the global IT services outsourcing industry has increased exponentially. Efforts to reduce costs and focus more on their core competencies have corporations outsourcing and offshoring many of their IT services. Offshoring of IT services have been growing at 40 to 50 percent a year. Brazil, like India, has stepped up to the challenge and has begun a campaign to build a strong international competitive position in the IT offshoring business. This researcher was asked to analyze Brazil’s intentions and actions regarding the international information technology sector using theories presented in International Business: The Challenge of Global Competition and provide recommendations to the Brazilian government and its outsourcing industry in order to improve their prospects for success in building a strong international competitive position in the information technology outsourcing business. Although Brazil is currently lagging behind India in IT outsourcing it is the 5th largest country and 11th most powerful economy in the world and with the right government infrastructure investments, Brazil could easily move up in its standings. Case Analysis 1. Use the theories of international trade and investment that...
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...Brazil: An Investor’s Paradise A Proposal on Why Investors Should Be Considering Brazil Introduction Currently, there are four countries that are growing at rates much faster than the average, and will soon be poised to be major players in the world’s economy. Those countries are referred to as BRIC, which stands for Brazil, Russia, India, and China. There is much debate as to which will emerge on top as the dominant world force; however investors are starting to make their predictions clear. Every day, investors are pumping money into the Brazilian economy for a myriad of reasons. But before one can understand those reasons, it is essential to understand Brazil’s background. Part I: Country Background Brazil was originally colonized by Portugal during the early 1500’s. This is evident today, as the official language of Brazil is Portuguese. It is estimated to be approximately 8,514,877 square kilometers, and have a population of 199,321,413, making it the largest country in South America, and the fifth largest in the world in terms of both area and population. (https://international.ipums.org/international/enum_materials.shtml) The political system used is a Federal Republic, and the Head of State is Dilma Rousseff. (https://www.cia.gov/library/publications/the-world-factbook/geos/br.html) While there are several political parties in Brazil, none of them are technically in power. The strongest of the group though is the Worker’s Party. The current type of law practiced...
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...MEDIUM | COST OF HIRING PEOPLE | MEDIUM | TIME ZONE ATTRACTIVENESS | HIGH | TYPE OF SKILLS | LOW | | | ENGLISH PROFICIENCY | MEDIUM | TOTAL | HIGH | | LOW | Global Services Location Index The ‘Global Services Location Index’ (GSLI) 2014 by A.T. Kearney is the sixth edition of the report in which the consulting firm examines the offshoring landscape in 51* countries around the globe, and ranks the top destinations for global offshoring. To come to this ranking, three main categories were researched; financial attractiveness, people skills and availability, and business environment. The weight given to these metrics is based on their importance to the location decision. ‘Financial factors’ constitute for 40% of the published index. ‘People skills and availability’ and ‘business environment’ both account for 30% of the total weight. CRITICAL ANALYSIS OF BRAZIL FOR OUTSOURCING Trends in Brazil that support sourcing. In 2009 Population – 193.7 million (fifth largest in the world) GDP – US$1574 billion (eighth largest in the world) GDP per capita – US$8220 (57th) GDP (PPP) as a % of world...
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.... | Country Analysis | Brazil | | . | [Pick the date] | AHMEDABAD MANAGEMENT ASSOCIATION | Submitted to Prepared by Dr.P.V.Desai Sagar Sakariya CONTENT Introduction | | Brazil annual report: Economic Indicator | | Government and Politics | | Foreign Relations | | States and Municipality | | Geography | | Climate | | Component and Energy | | Transport | | Demography | | Main Drivers for Doing business in Brazil | | Mani Challenges of Doing Business in Brazil | | Summary of Indicator- Doing business in Brazil | | List of Procedure | | PESTLE | | Political * Political system * Change in government * Lula administration focus area * Law | | Economic * Economy of Brazil * Industrial output * Key industries * FDI | | Sociological * Culture * Language * General attitude * Personal appearance | | Technological * Technology research * Information technology * R & D * Technology policy of Brazil * Brazilian industry and Technology | | Legal * Legal system of Brazil * Municipality * Court and justice | | Environment * National * The Future | | Introduction Brazil is the largest and most powerful country in South America and has become one of the world's most...
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...Accounting System: Inflation, Taxation, and the Adoption of International Financial Reporting Standards Introduction As the business world evolves to a higher level of integration with the increased ability to conduct business globally, international accounting is a subject that is becoming more relevant and increasingly more important to understand. Doupnik and Perera (2012) define International accounting on three levels through the standards and guidelines of supranational organizations, at the company level, and third through the standards, rules, and guidelines that exist within each country. Brazil is one of the top five countries to be considered an emerging market (Top 30 Emerging Markets 2012-2017). It is estimated that Brazil’s GDP will grow by roughly 22.3% between the years 2013 to 2017 making the country attractive to investors (The Top 20 Emerging Markets, 2013) . Brazil ranks as one of the top 4 countries for growth in the manufacturing and industrial industries, telecommunications, technology and media, professional and business services, financial services, consumer products, pharmaceuticals and healthcare, energy and resources, automotive, chemicals, and transportation industries (Top 30 Emerging Markets 2012-2017). In addition Brazil will be a destination for world class events such as the 2014 World Cup and 2016 Olympic Games that will bring thousands of visitors to the country. As Brazil continues to grow in popularity as a location for trade, cultural...
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...strange and quite different from what you are used to in Canada. One of the major differences is that Brazil is a collectivistic culture as measured on Hofstede’s Individualism Index, in contrast to Canada’s individualistic culture (Hofstede, 2014). Brazil’s collectivist nature will have many impacts on your daily interactions, including the Brazilian importance of family, which will often be place above work priorities (Training, 2012). Brazil is also different in its communication style, which tends to be more informal and indirect than Canada’s formal and direct style. Brazil is also considered a high-context culture, therefore it is important to pay attention to what is said, how it is said, and what is not said (Suderman, 2008). Another major aspect of Brazilian culture is the importance of building relationships before commencing business. Brazilians expect to get to know their business contacts through multiple meetings, in order to establish trust, and hopefully a friendship (DiPaolo, 2006). This process may take some time as it illustrates Brazil’s Polychronic orientation, which is more relaxed (slower) in nature and where the prevailing attitude is that “things will get done in their own time” (Suderman, 2008). Brazil is also very comfortable with inequality as evidenced by their high score on Hofstede’s Power Distance Index (Hofstede, 2014). As a manager in Brazil you will be expected to take absolute responsibility and to use an authoritarian style of leadership...
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...International Marketing (BX770007) Assignment 1 Jason Products International Market Expansion Proposal Submitted by – Shazma Farooqui Student ID - 10000 Word Count - 2000 Executive Summary The proposal is for Jason products which is a family owned business, the company deals in high quality dining accessories and table protection solutions. The company products are innovative, beautiful, & practical to use, in the last 5 decades the company has grown to become one of the world leader in cork backed placemat manufacture and design. The company is headquartered and based in Auckland with subsidiaries in UK, USA & Australia. (www.jason.co.nz, 2013) This proposal is for exporting the company products to four new countries along with detailed explanation that why these potential markets will be beneficial for the organization to start exporting company products, the proposal will cover the economic, financial & cultural factors prevailing in the countries being recommended in this report. The environment, competition and the market trends in domestic & international market & the developments have a direct impact on success. It is imperative to have a better understanding of the prevailing market scenario, which will help us to plan well and take good decisions. Target Countries for Expansion * Japan * Canada ...
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...Expanding an MNC International Business 300 – Fundamentals of Global Management February 24, 20xx 2 Expanding an MNC – Part 2 Given Brazil’s prominence on the international stage and strong underlying fundamentals, it has been decided that Brazil will be our country of choice for expanding our U.S. based manufacturing company. To begin this process we considered factors that we have studied in detail such as their economic system, political environment, legal regulatory environment, technological environment, ethical system, social responsibility indicators, and cultural dimensions. We will now build our strategy to enter and expand our manufacturing company using a methodical process for entry into this country. We have decided to look for buildings in the Southeast part of Brazil which comprises of Rio de Janeiro and Sao Paulo, Minas Gerais and Espirito, with our focus centered on Sao Paulo. The Brazilian business environment is as rich and varied as the country itself. Our company will be entering Brazil as a wholly owned subsidiary clearly; the advantages in going this way out weigh the disadvantages. Such advantages as reducing the risk of losing control over our product, allows us a firm control over operations, which is necessary for engaging in global strategic coordination, and gives us 100 percent share in the profits if generated in the foreign country. It also gives us the ability to realize location...
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...1. Introduction Background/Product overview The global brand Freitag was established by the Brother Daniel and Markus Freitag producing customized bags. Freitag AG was set up in 1993 and is based in Zurich Switzerland. The two key point which gives Freitag the competitive advantage are they producing customized bags and using recycled material. The company has positioned itself as an environment friendly organisation by re-using industrial waste such as truck tarpaulins and seat belts for the bag and recycled bicycle and tires tubes which is used for the edges of the bags. The Brothers not only design bags also woman’s handbags, wallets, lap top bags, covers for apple products and the messenger bags which are only products once and many more other bags. Freitag has 9 stores around the world which are in Zürich, Berlin, Davos, Hamburg, Cologne, New York, Tokoyo, Wien and London and also uses 400 sales partners and there online shop which ships the products around the world. Each store is designed to reflect on the eco-friendly mission of the organisation one of the stores is build out of 17 recycled shipping containers and shelf’s out of recycled gym equipment’s. Freitag sold in 2011, 300.00 bags and accessories and the previous year 280.000 products. The demand for Freitag bags is very high with no competition using about 390 tons of truck tarpaulin each year however Freitag does face a challenge finding material to produce the products. Another advantage the organisation...
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...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...
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...1.0 Introduction to Brazil Tourism Industry In Brazil, tourism is a key to the economy development of several regions of the country. This statement was further supported by Slob B. & Wilde J. (2006), in their published journal entitled ‘Tourism and Sustainability in Brazil’, regardless of anywhere in the world, tourism, indeed; is the fastest growing industry and it contributes the world economy with a gross output of over US$7 trillion, employing 11% of globe’s workforce, forming 11.5% of global GDP. While in Brazil, White (2006) found that the industry contributes 3.2% of the total country revenue in year 2005. According to World Tourism Organization (WTO), due to the devaluation of American Dollar against the Brazilian Real has made a favorable trend in International tourist arrival to Brazil to grow dramatically in 2007 and in early 2008. In spite of this, statistic in Table 1 shows that revenue had risen from USD 4.3 billion in 2006 to USD 5.7 billion in 2008. Table 1 Brazil International Tourism Arrivals 1995-2011 Year | International tourist arrivals (x1000) | Annual growth (%) | Total revenue (millions USD) | Annual growth (%) | 1995 | 1,991 | - | 972 | - | 2000 | 5,313 | - | 1,810 | - | 2003 | 4,133 | - | 2,479 | - | 2004 | 4,794 | 16.0 | 3,222 | 30.0 | 2005 | 5,358 | 11.8 | 3,861 | 19.8 | 2006 | 5,019 | -6.3 | 4,316 | 1.1 | 2007 | 5,025 | 0.1 | 4,953 | 14.8 | 2008 | 5,050 | 0.5 | 5,780 | 16.7 | 2009 | 4,802 | -4.9 | 5,305 | -8...
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...begin to look at things different in the aspects of (i) ethics and (ii) international ethics. I have done consulting work for some companies overseas that I was aware "grease payments" were made to the government, to get an expedited approval; however I was not aware that in the sense of ethics these "grease payments" were frowned upon by the US and considered unethical. I understand now that dealing with international companies these practices are seen as the standard or part of the culture; however, working for a domestic company makes me accountable at a different level. One company that interests me is General Growth Properties (Stock: GGP) traded on the New York Stock Exchange with assets located all over the world. Two TCO's that would make it harder to operate multi-nationally would be (D) Contract Law and (I) International Ethics. GGP is a company that deals with land and shopping mall development. Contract law makes it a bit difficult to operate internationally because GGP has involvement in both Brazil and Turkey. Dealing with different countries and different currencies I can foresee contracts being a bit difficult because the terms of the contract would require force majeure. Force majeure would be the contract inclusions of any sudden changes in the government or in the global political climate. Another factor that could make it more difficult GGP for to operate internationally would be international ethics. Per Jennings' article, "the level of [Brazil's] government corruption...
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...REPORT – BRAZIL Distribution of income Brazil has historically a very unequal income distribution. In the 90´s Brazilian government believed that if high inflation rate were cut down, the income distribution would improve. In fact, after a successful plan of stabilization of the inflation, the unequal pattern of income distribution did improve in a consistent way in this decade. Other important aspect about income inequality in Brazil is related to regional pattern of income distribution, which is extremely unequal between different regions of the country. Although a generally improved distribution of income took place, the differences between regions remained in the 90’s. However, the current level of unequal income distribution is yet very far from the pattern of many developed countries. [1] Growth and structural changes have not altered significantly Brazil's extremely unequal distribution of wealth, income, and opportunity. Despite impressive increments in economic growth and output, the number of poor has risen sharply. Most of the poor are concentrated in the rural areas or in the country's large cities or metropolitan areas. Poverty, measured by the local minimum wage, declined from over 52% of the population, in the beginning of the nineties, to about 38% in 2005, meeting the Millennium Development Goal. Extreme poverty, defined as income of less than a dollar a day (in purchasing power parity), declined from 8.8% to 4.2% in the same period. [2] Trade In...
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...Minicase: Can Brazil Become a Global Competitor in the Information Technology Outsourcing Business? 1. Use the theories of international trade and investment that have been presented in this chapter to help explain Brazil’s intentions and actions regarding the international information technology sector. The IT Service industry has expanded rapidly. Many companies worldwide have made the decision to outsource this industry to offshore companies. Worldwide demand has increased growth to 40 to 50 percent on an annual compounded rate basis. Many developing nations like Latin America and Asia have made an attempt to obtain some of the IT offshoring business from countries like the United States because it is seen as not only a source for skilled labor but an opportunity to improve the economy. Brazil has steadily become a strong competitor in the IT offshoring sector for a number of reasons. Brazil is the 11th most powerful economy in the world and has a high-rated and technologically advanced telecommunications system and network services infrastructure. In fact it has been rated higher than even China in terms of reliability. Brazil also has many solid engineering schools, which are producing many quality tech graduates. Brazil also boasts a sophisticated banking sector along with an effective marketplace for IT software and support services. Real Estate is also quite affordable for corporate undertakings. Brazilian wages are typically 40 percent of those for the same...
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...Executive Summary Investing in Brazil, as with any country, entails exposure to a variety of political, social, economic, and other risks, but also entails potential benefits for multinationals corporations. Political Risk- Brazil has been a stable democracy for 25 years. Despite some unique risk as corruption, Brazil has been rating overall medium risk for dynamic risks, governance framework, political violence and business and macroeconomic environment. Financial Markets in the country & Sources of Capital for the multinational corporation Brazil is now the eighth-largest economy in the world and will continue to seek a growing international role. The country has also been considered a confident player on the world stage and also seat temporary at the UN Security Council. The Brazilian Bovespa index of the Sao Paulo Stock Exchange has been doing very well with several shares from different sectors which are providing steady growth to the Bovespa index. There are many financial service as the private multi-purpose commercial banks, universal banks, play the leading intermediary role in the country’s financial sector. Public financial institutions are also among the leading intermediaries, promoting rural economic activity and agricultural production through the provision of subsidized loans. Tax Structure & Investment Incentives for which foreign based companies are eligible Brazil’s Tax Laws and system, Brazil's corporate tax rate for 2010 around 34%...
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