Introduction to Brasil
Brazil is the fifth largest country in the world, with a total land mass of over 8.5 million square kilometres. Located in South America, it covers a full 48% of its area. The country is cut by both the Equator and the Tropic of Capricorn, spanning several latitudes and longitudes which causes a broad climatic diversity.
Following World War II industrialization was stepped up, chiefly in the durable consumer goods (e.g. automobiles) and basic-inputs sectors (steel, electric power, etc). This whole effort took place under strong protectionism, shaping a tightly closed economy with substantial participation of government in the productive sector, but nevertheless achieving great success in terms of economic growth.
Throughout the ‘80s, both the oil crisis and the foreign debt crunch of the developing countries caused this development model to collapse, resulting in economic stagnation and runaway inflation.
During the ‘90s, the economy underwent profound changes thanks to sweeping economic reforms that slashed inflation to manageable levels and placed the economy back on a growth pattern. The economic opening was consolidated as trade liberalization became a fact and MERCOSUR developed.
Doing Business in Brazil is in many points quite different to what Europeans understand by doing business. Brazil is known for great weather, sunny beaches and the sea. Somehow this menatality is reflected in doing Business as well.