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Country commercial guide is a report generated by commercial services based on

business on various countries, the reports clearly mention about the business
environments in other countries and what are the opportunities existed for US investors
(companies). For a company to do good business it needs land and population, in the list
of land mass and population all over the world Brazil stands 5th position, the economy
lists in the 7th position almost grew 1% in 2012.over the past decade Brazil controlled the
aggregate amount of income national income and reduced the unemployment rather that
concentration on single sector or single individual, They have handled the macro
economic policies which helps in controlling inflation keeping price normal value and
taken care of economic growth. During 2013 the inflation is 6.5% and unemployment
rate was 5.8%, the interest rate was a bit high compared to previous years but when
compared to historical chart it is well below in Brazil. China is top in the list the countries
which exports its goods to Brazil where as US stands second in the list it gets around
14.6% imports from USA, next in the list which exports goods to Brazil are Argentina,
Germany and South Korea. 43.7 Billion amount of trade has imported to brazil from US
in 2012 which is up 1.8% from its previous year and US imports from brazil was 32.1
billion which is 1.1% increase from its previous years, It clearly stated that US in
maintain good trade balance with USA to keep inflation rate down and to gain some
profit rather that doing Zero-balance trade making it as positive trade balance, This kind
of trades gives profit to both countries. Brazil is a large diversified economy so it will
give lot of opportunities to US companies to do business in different sectors.

Energy sector:

Entry To Brazil Individual Research Case


Brazil is in the top of the list in South America production of clean energy market,
Almost 80% of energy is produced from renewable sources, which is good for
environment. As the electricity demand is rising it is good time to invest in Brazil has lot
of resources to produce energy. In 2012 in Brazil the total investments on energy was
nearly 5.34 billions which is highest compared to any other Latin American countries. By
202 they had a plan of bring envision of 18GW by using renewable resources, they are
planning to use local resources. There is an increase of 12% annually over the production
renewable energy in Brazil, with using hydropower plants, biomass from sugarcane. As
the Brazil has good resources to generate energy using hydropower plants most
percentage of energy is provided from hydropower plants they almost generates 84GW of
Brazils total capacity.
Source
Amount
Hydropower
84 GW
Biomass
9.84GW
Small hydropower
3.69GW
Wind Power
2.46GW
As they got successfully over the launch of program Program of Incentives for
Alternative Energy Sources (PROINFA), in 2002 for fin gut the alternative sources to
generate electricity, they introduced wide range of polices which will encourage most of
companies to do business by tax based incentives and low interest financing which helps
to gain more profits for companies. As they are trying to increase wind energy farms they
had almost 108 wind farms producing 2.46GW by 2012, which is 73% from its previous
year, and wind energy is almost 2% of country energy production, they are planning
make it 6.05GW by 2013 and by 2017 they are estimating around 8.8GW.

Entry To Brazil Individual Research Case


As they have some import traffic limit for designing the turbines and to purchase
products for using wind energy generation, US exporters will have opportunities due
wind turbine design, wind resource mapping.
Solar energy:
In brazil almost 20MW of energy will be generated by solar, It is used in areas where its
is hard to supply electricity such as remote areas, They are used to power some of the
systems such as communication masts used for mobile phone networks and traffic radar
systems. Brazil advantage is large deposits of silicon but they are not yet mastered in
process of cleaning the ore and to manufacture panels so its good opportunity to enter
there and to implement technology which is used to purify the ore for manufacturing the
panels. In 2013 ANEEL received permit for installation of 25 new solar projects, which
may total production of 967 MW, around 3.9GW of solar permits, had requested since
2011 has stated in new energy finance report. As if these has implemented successfully
they can export to other countries to make profits.
Mining:

2011 2012 2013 (estimated) 2014 (estimated)

Total Market Size

4,670 5,000 5,180

5,200

Total Local Production

5,100 5,400 5,600

5,600

Total Exports

800 800 830

830

Entry To Brazil Individual Research Case

Total Imports

370 400 410

430

Imports from the U.S.

100 100 110

110

Exchange Rate: R$1 to US$1 on Dec 31 1.80 2.04 2.34

2.34

As in the list of production of mineral producer, which stands at 5 positions, It shows


clearly it is one of the worlds largest production in mining industry. Brazil exports mining
products to china almost china defines how much mining need to be done in Brazil
because its a leading importer of brazil Mining products. As we know labor is cheap in
the Brazil and caterpillar established a company over there in 2012 almost 50% of
products are manufactured over there and supplied to different parts of world, Germany,
China, France, Sweden, Finland, USA, japan are the strong exporters of mining products
from brazil. Other countries which had factorys over Brazil in order to make their
products here and to sell in different parts of world due to rich in minerals in Brazil

Country

Company

Australia

Orica

Finland

Metso, Outokumpu

France

Michelin Tires, Saint Gobain

Entry To Brazil Individual Research Case

Germany

Koch, Kuttner, Liebherr, MAN, Mercedes


Benz, Schaeffler, Schenk Process, Siemens,
Thyssen Krupp, Voith, WehrAlstom

Italy

Case New Holland, FIAT

Japan

Komatsu, NSK, Toshiba

USA

3M, Cummins, Eaton, GE, Goodyear,


Ingersoll Rand, ITT, Terex, Timken

Sweden

Asea BB, Atlas Copco, Sandvik, Scania,


SKF, Tamrock, Volvo

Due to worlds largest in mineral procedure in Brazil makes my company to tend towards
starting a new company in brazil as we seen more companys from different companys
trying to make profit by entering brazil mining sector and in the energy sector they are
looking for generating energy using the Hydro, Solar and wind systems. They are lack of
technology in purifying the ore which is available for manufacturing the panels US
4

Entry To Brazil Individual Research Case


companys can enter the market as they can use their technology in purifying the ore and
manufacture the panels, As Brazil government has polices in hydropower generation
which has tax redemption and low interest financing which is also a good sign for my
company to enter the energy market in Brazil.