Cultural Analysis of Brazil

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CULTURAL ANAYLSIS OF BRAZIL

1. Education Of Brazil
   1. The role of education in society
   2. Primary education (quality, levels of development, etc.) (Is it public or private? Is it compulsory? What are the attendance figures?)
   3. Secondary education (quality, levels of development, etc.) (Is it public or private? Is it compulsory? What are the attendance figures?)
   4. Higher education (quality, levels of development, etc.) (What are the principal universities? How many are there? What are the enrollment figures?)
2. Political system of Brazil
1. Political structure (What kind of government is it? Monarchy, democracy, parliamentary system, etc?)
2. Political parties (How many are there? Which ones are the important ones? Who do they represent? What are their political tendencies? What party is presently in control of the government?)
3. Stability of the government (How stable is the political system? Do governments last a long time? Do they have peaceful transitions from one government to the next?)
4. Special taxes (Are there any special taxes that a foreign corporation considering working in that country should be aware of?)
5. Role of local government (Provincial government, city government, etc)
6. Social Security (Is there a national social security system? What does it provide? How is it funded? What percentage is deducted from workers wages for social security? What percentage do employers have to contribute?)
7. Health Care (Is there a national health care system? What does it provide? How is it funded?)
3. Living Conditions of Brazil
   1. Diet and nutrition (Suggest you search for statistics from the World Health Organization)
      1. Meat and vegetable consumption rates (Figures, such as Kilograms/year, or Calories)
      2. Typical meals
      3. Malnutrition rates
      4. Foods available
   2. Housing
      1. Types of housing available
      2. Do most people own or rent? (Statistics?)
      3. Do most people live in one-family dwellings or with other families? (Statistics?)
      4. Clothing
   3. National dress
      1. Types of clothes worn at work
   4. Recreation, sports, and other leisure activities
      1. Types available and in demand
      2. Percentages of income spent on such activities (figures)

ECONOMIC ANALYSIS

A. Communication systems

1. Types (telephones, cell phones, e-mail?)

2. Availability (how many?)

B. Working conditions

1. Employer- employee relations (Are they good? bad? Strikes? Days/year lost to strikes?)

2. Employee participation (in determining working conditions) (Are there workers committees or workers councils that help manage companies?)

3. Salaries and employee benefits (What are the minimum wages?)(What are the customary benefits? Paid vacation? Sick leave? Health benefits?)

C. Principal industries

1. What percent of the GNP does each industry contribute?

2. Ratio of private to publicly owned industries

D. Foreign investment

1. Opportunities? (are there any opportunities for foreign investment?)

2. In which industries?

E. International Trade Statistics (don't forget to indicate the dates of the data)

1.Major exports (what goods?)

a.Dollar value (of exports)

b. Trends (have there been trade surpluses or trade deficits in the past years?)

2.Balance of Payments situation (What is the Current Account situation?)

a.Surplus or deficit? (Current Account Surplus or Deficit?

b.Recent trends (What have been the Current Account Balances in the last few years?)

3.Exchange rates

a.Single or multiple exchange rates?

b.Current rate of exchange

c.Trends (has the currency been getting stronger or weaker over the past few years?)

Brazil is the most recent nation to fall victim of the global financial crisis. The Brazilian government made the conscious decision in January of this year to devalue its currency, the real, and let it float. Exactly what happened to Brazil can be understood best by looking at the role that its government has played in Brazil's economic development. What could have caused the once stable emerging market, with liberalized trade, inflation in check, and a growing GDP to flounder and fall into crisis? The answer can be found within the global crisis, which added to the problem of its budget deficit, which is indicative of emerging economies in the latter part of this century (i.e. Mexico).

Brazil needed a change and it came in the form of the ousting of President Collor and a dramatic reform in 1994 by the Cardoso administration. The plan was called the Real Plan and introduced a new currency into Brazil. The economy stabilized and the demand for capital goods production increased. Brazil was able to withstand the Mexican peso crisis but it could not go unscathed during the Asian crisis. The Asian crisis caused Brazil to raise its interest rates by 43% and announce a bold $18 billion dollars worth of tax raises and spending cuts, which the government could not live up to.

Brazil raised its interest rates to attract foreign investment. Only a few short months after the Real Plan was implemented, the Real appreciated to 0.81 for one US dollar. The Central Bank stepped in to cut off the appreciation and established a new exchange rate policy. However, in the years following, due to rising trade deficits and steady outflows of foreign capital, the Central bank devalued the Real.