PESTLE legaland environmental

PESTLE: Technological • Brasil expends between 1.16 and 1.21% from their GDP in Research and Development. • A great number of startups have recently developed inthe country. Also a lot of technological IT providers stand in the country as: Stefanini, TIVIT, Sambatech, Apdata, Inmetrics, Stone Age, Dclick, among others startups and national companies. • Is expected that these companies increase their revenues and expore foreign markets. 29

31. PESTLE: LEGALAND ENVIRONMENTAL Colleague 4

32. PESTLE: Legal • Civil Code • Most common types of companies: - The Corporation (S.A.) - Limit Liability Quotas Company (Ltda.) • Companies are treated as separate legal personalities • Creditors are generally not able to seize partner assets to pay off debts • Registration on foreign investment in media, finance, insurance and public health 31

33. PESTLE: Legal • Legislation varies across states thus increases complexity and compliance costs • Although senate suggested tax reform, 33% of GDP is tax • It takes 120 days to open a business 32 dfcvgbfvgbhk tygb gb ygbh gybh ygb gvhb hb ygh31. PESTLE: LEGALAND ENVIRONMENTAL Colleague 4

32. PESTLE: Legal • Civil Code • Most common types of companies: - The Corporation (S.A.) - Limit Liability Quotas Company (Ltda.) • Companies are treated as separate legal personalities • Creditors are generally not able to seize partner assets to pay off debts • Registration on foreign investment in media, finance, insurance and public health 31

33. PESTLE: Legal • Legislation varies across states thus increases complexity and compliance costs • Although senate suggested tax reform, 33% of GDP is tax • It takes 120 days to open a business 32

34. PESTLE: Environmental • Environmental policies to stop deforestation and emission • Compelled industries to initiate eco-friendly combustion technique • According to Kyoto Protocol Brazil is one of the largest emitters of greenhouse gases. 33

35. FUTURE DEVELOPMENT Anton Wischnewski

36. Future Challenges 1. Productivity growth 2. Tax burden ("Brazil Cost”) 3. Integration into global markets 4. Focus on key commodities 5. Expand infrastructure 35

37. Future Challenges: Income Growth 36

38. Future Challenges: Poverty 37

39. Future Challenges: Tariffs 38

40. Future Challenges: Taxes (Brazil Cost) • Need to lower the “Brazil cost” (Tax) Regulatory burden: • Brazil ranks 116th out of 189 countries in terms of its regulatory burden. Taxation category • Brazil ranks 159th in the world. Note: Time per year needed to prepare and declare taxes • Brazil 2,600 hours (almost 4 months) / each year • China: 318 h (13 days) • Indonesia: 259 h (11 days) 39

41. Future Challenges: Global Integration 40

42. Future Challenges: Infrastructure • Brazil’s investment in Overall infrastructure: • 1970: 5.4% of GDP • 2000: 2.1% of GDP Transportation infrastructure: • 1970: 2% of GDP • 2000: 0.5% of GDP • Now: 1.5% of GDP (Global average = 3.8%) 41

43. Future Potential 1. Economic growth 2. Deeper integration into global markets 3. Emerging Middle Class 4. Young work force 5. BRICS Bank 42

44. 43 Future Potential: BRICS Bank Source: The BRICS Post (2014). India follows Russia,

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