The board has just contacted your manager, Mr. Smith, regarding its position on expanding the company to your selected country. The board members explained to Mr. Smith that they would like you to complete one more assignment before they make their final decision. Mr. Smith explains to you that the board wants you to prepare a risk profile for your selected country, researching key factors and assessing how the factors could pose risk to your company. He also informs you that the risk profile must contain a political risk, economic risk, terrorism risk, physical risk, and a crime risk outlining your selected host country. (BRAZIL)
Create a risk profile showing key factors and assessing how the factors could pose risk to Brazil.
Address the following in your profile:
- Research key factors for your selected country.
- Assess how the factors could pose risk to your company.
- In the political risk section, address the political stability of your selected country.
- In the economic risk section, examine the current and past exchange rates between your selected country's currency and the U.S. dollar.
- In the terrorism risk section, examine any patterns of existence of localized rebellion, insurrection, or social or religious strife.
- In the physical risk section, research and address the physical landscape of your selected country (mountainous, flat, hilly, etc.). Also, address the climate for your selected country, and discuss how it might affect your company's business in your selected country.
- In the crime risk section, address the crime rate in your selected country, and discuss how the crime in your selected country might affect your company's business there.
- Research any other risk analysis services or reports for your selected country, and include them in your profile.
The response addresses the queries posted in 2174 words with references.
//In this paper, we will discuss the country selected by the company and will also identify the key factors of the selected country. In this paper, we will also assess the manner in which key factors can pose risk to the company which is expanding their business in the selected country. This paper will also describe the risk which the company can face during investing in the selected country like political risk, economic risk, terrorism risk, physical risk and crime risk.//
The company has selected Brazil to expand their business. In Latin America, Brazil is the largest country and has the most stable economy. The key factors of Brazil are geographical area, politics, economy, society/culture and technology.
Geography: In South America, Brazil is the largest country. Brazil is spread from east to west approximately 4330 km and from north to south approximately 4770 km. Brazil is separated into the highlands, plateaus, Amazon River basin and coasts and beaches. The environment of Brazil reflects like a picture of contrast and extremes. The climate of the country is mainly tropical, whereas in the south, it is temperate. Brazil is wealthy in natural resources like gold, copper, coal, iron ore, tin, aluminum and many other natural resources. Brazil participates actively in global problems like changing the environment, etc. In 2009, Brazil registered a population of 198,739,269 people. It also has diversity in the populations like 54% of people are Europeans, 39% are African European, 6% are Africans and 1% of people come from other places (Briney, 2010).
Politics: Brazilian political structure is a federal republic. It involves the federal district, 26 states, and thousands of municipalities. The legal system of Brazil is followed according to the codes and legal rules set up by the government at all levels, i.e. federal, state and municipal levels. Brazil conducts democratic elections for the president legislators, representatives, mayors, municipal counsels and also for various other government bodies. Brazil is having autonomy of government, law, taxation and public security to some extent. Globally, Brazil has attained a permanent seat in the UN Security Council and the country is also increasing the level of relation with two developing countries; India and South Africa. The government of the country is attracting the foreign investors to invest in the country by exhibiting the stability of the Brazilian foreign investment legislation and not changing the legislation frequently (Legal Aspects of Doing Business in Brazil, 2006).
//In this part, we will discuss the remaining key factors of the country which are to be considered by the company to expand their business operations in Brazil.//
Economy: Brazil is the biggest economy in South America and across the globe it is the 10th largest economy. Brazil is a big and developed agriculture sector, mining, tertiary and manufacturing sector. It was estimated that foreign and domestic organizations and government will be investing approximately $112 billion in the oil & gas sector and approximately $300 billion amount will be invested in the infrastructure of the country to develop roads, ports, networks, etc. Numerous investment and active policies made by the government are helping in providing a stable and increasing platform to the international investors. Brazil is the first market, which has recovered its economy in the positive direction along with the increase in GDP. In 2003, Brazil ameliorated its international reserves, controlled the inflation rate, and decreased the debt of the country (Brazil: Key facts and figures, 2006). Brazil cost of stimulus is less comparing to ...