Working+in+Brazil

There is a 0.60¢ difference from the Brazilian Real to the Canadian dollar, (The Brazilian currency having less worth than the Canadian dollar). The Brazilian Real has recently suffered an inflation of 4.3%. Brazil's currency strategy includes buying foreign currency to keep their currency cheaper. There are eight free trade zones in Brazil. These zones are exempted from import duties only if 90% of the production is imported into Brazil. When shipping into Brazil there must be a commercial invoice that includes an exact description of the imported product in Portuguese. The invoice must include: country of origin, date, place of shipment, prices including insurance, and weight. If importing food products they must have certification from a Brazilian consultant in Canada. According to the Brazilian customer protection code (Sept.12, 1999), products are required to provide the consumer with labeling that has the correct, clear, and precise information. **__Infrastructure__:** Roads are the primary method of transportation for both passengers and freight. According to the World Bank, the highway systems are poorly maintained and 28% of the highways are paved. Due to this fact the Brazilian government has implemented road construction plans that have caused an increase in transportation costs. There is a limited railway system, and is slowly declining due to tracks falling out of service. The most developed transportation is air. Brazil has 48 main airports, 21 of them are international. Hydroelectric plants generate most of the electrical power. Brazil is considered to be responsible for 91% of the total production. Secondary plants are fossil fuel and nuclear energy. Telecommunications are well developed. Brazil has approximately 19 million main lines in use and 8 million mobile phones in use. There are 138 television broadcast stations and Internet services are still limited but excellent connections are located in main cities like Sao Paulo.
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__**Political Risk: **__ Brazil’s government can be characterized for its multi-cultural make-up. Political progress requires constant negotiation that slows down fundamental reforms such as tax policies. There is difficulty in balancing business promotion and making progress on social issues. Among South and Central America, Brazil is considered the leader of the developing countries by representing many in the United Nations and other important organizations. For this reason Brazil has aimed to tighten their bonds with the South American countries, like Argentina, Colombia, and Peru. Brazil’s government attempts through many agreements to settle disputes in non-violent manners.

**__Social/Cultural Risk:__** Poverty is a big social risk in Brazil. It can be found in the country's metropolitan area and outside villages. In 2002, the government reduced 19.8% of the poverty rate. Brazil is recognized for its massive division between poor and rich. The following picture shows these separations: Brazil also has problems controlling their crime rate, there is roughly 23.8 homicides per 100,000 residents. Common crimes include: mugging, robberies, kidnappings, and gang violence. Like most Latin American countries, Brazil tries to find its own identity away from the colonial times. Brazil is unique for its Portuguese background, size, and geographical location. The Brazilians are proud of being the only Portuguese speaking country in South America. Therefore, they do not appreciate outsiders assuming they can speak Spanish. Cultural risks include: the remaining use of military dictatorships and a lack of national security. 0 **__Natural/Physical Risk__**: Brazil occupies the largest area in the eastern coast of South America. Brazil’s uniqueness is the cause of diverse climate, size, relief, and natural resource. This country consists of many mountains, hills, plains, and highlands. Consequences include roads being rocky, broken, and low. Brazil passes through equator therefore there is high tropical climate that dominates. Occasionally frost and snow is experienced in the higher regions. Basically Brazil can be said to have five climatic regions: the equatorial, tropical, semiarid, highland tropical, and subtropical. Repeating droughts in the north-east, floods and occasional frost in south are some of the natural risks Brazil suffers. 0 __**Corruption**:__ Brazil is an enormous market that is encouraged by foreign investment. Several studies done on Brazil have shown that corruption and bribery are constant obstacles to doing business. Even though the government greatly supports new and international investments with economical and technological support, they show a lack of interest in ending political corruption. When doing business the investor have to deal with regulation agencies due to the federal structure, bribery in some cases may be the only way to ensure government contacts, and the Brazilian tax system has been reported to be corrupt. 0 __**Workplace Safety**:__ Brazil is the fifth most populated nation offering a variety of services like manufacturing, agriculture, and mining. This means that these sectors offer a wide range of workplace hazards. Through-out the years the Brazilian government and non-governmental organizations have been able to decrease the number of injury incidences; there is a recorded 5 people injured per 100 people a year. As well there are 5 deaths per 1000 people injured. In Brazil, the government offers ‘welfare’ (funds obtained from citizens taxes), and is granted to those who have lost the ability to work due to: sickness, age, or maternity. Brazil has a high incidence of occupational injuries and diseases; these injuries and diseases are unreported. This has been the basis of Brazil portraying the inequality that exists in many countries between legislation on the books and legislation that is actually implemented. <span style="color: #ffffff; font-family: Arial,Helvetica,sans-serif;">0 <span style="color: blue; font-family: Arial,Helvetica,sans-serif; font-size: 14pt;">**__Treatment of labour:__** <span style="font-family: Arial,Helvetica,sans-serif;">A formal agreement is necessary when legally employing somebody and ensures that what you have stated verbally is recorded. If an employee is dismissed for a good reason than he or she is only untitled to compensation for the days worked before dismissal. According to the Brazilian Federal Constitution everyone is free to be part or associated with a union. Direct employment by a foreign company is not permitted; therefore a foreign company wishing to hire Brazilian employees must fill out the ‘Limitada’ form. The violations of these labour laws will be punished with up to 2 years in prison for employers. The Brazilian minimum wage is adjusted annually, in 2009 the minimum wage was R$ 465 per month, R$ 23, 25 per day, and R$ 2, 9 per hour. In Canadian dollars a Brazilian employee would be paid a minimum wage of $17. 40 CAD per hour.

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