1. Assignment <br /> On<br />“International Business”<br />Submitted To: Submitted By:<br />Prof. Uddeepan Chatterjee Mohit Malviya<br />Abhishek Pratap Singh<br />Anup Vijayan<br />SOCIAL AND CULTURAL ENVIRONMENT-BRAZIL<br />Social Stratification<br />CLASSES AND CASTES: “Brazil is no longer an underdeveloped country. It is an unjust country,quot;
Brazilian President Fernando Henrique Cardoso proclaimed in 1994. Today Brazil, although one of the ten largest economies in the world, has the most unequal distribution of income of any nation except South Africa. Moreover, inequality has been growing. In the mid-1990s, the poorest 20 percent of the population received only 3 percent of national income, while the richest 10 percent received 47 percent. Or, put in another way, the wealthiest 20 percent earn twenty-six times as much as the poorest 20 percent. It is estimated that some thirty-three million Brazilians live in poverty, including twenty million workers and ten million pensioners who receive the minimum wage of around $115 a month. In parts of Brazil, particularly the Northeast, infant mortality, a sensitive indicator of social inequality, has actually been rising.<br />This quot;
social question,quot;
as Brazilians call the divide between rich and poor, has characterized the nation since colonial times. With industrialization and urbanization during the first decades of the twentieth century, however, the growth of the Brazilian middle class has made this simple division more complex. Today, depending on how it is defined, the middle class accounts for one-fifth to one-third of the population, but the resources and lifestyle of its members vary considerably. Some claim the Brazilian middle class admires elite values and aspires to elite status and it is indeed true that middle-class families in Brazil are far more likely to employ domestic servants and send their children to private school than their North American Counterparts.<br />Thousands of saqueiros (sack carriers) working on the Serra Pelada gold mine, which is now closed. Gold was one of the most important exports in the eighteenth century<br />In the late 1980s, moreover, it was members of the Brazilian middle class who, hurt by then rampant inflation, began seeking their fortunes abroad as immigrants to North America, Europe, and Japan. Still, a ray of hope emerged with the stabilization of the Brazilian currency and the rapid decline of inflation in the mid-1990s. Estimates suggest that some nineteen million Brazilians moved from the working poor to the lower middle class. For the first time these people had money to spend on consumer goods; those who remained poor also benefitted from stable prices and were better able to afford staples such as meat, chicken, eggs, and beans.<br />SYMBOLS OF SOCIAL STRATIFICATION: Brazilians are preoccupied with class distinctions and are quick to size up the social distance that exists between themselves and others they meet. Yardsticks of such distance are general appearance and the quot;
correctnessquot;
of a person's speech. The degree to which an individual's vocabulary and grammar is considered quot;
educatedquot;
is used as a measure of schooling and, hence, social class. And this, in turn, establishes patterns of deference and authority between two individuals should they belong to different social strata. When such patterns are ignored, the quot;
elitequot;
persons may harshly demand of their quot;
lessers,quot;
quot;
Do you know whom you're talking to?quot;
—a ritualized response when someone of higher status is not accorded due deference by someone lower on the social scale.<br />SOCIAL WELFARE AND CHANGE PROGRAMS: Brazil has long had welfare and pension systems but they do little for poorer workers and largely benefit state functionaries. Brazil also has some of the most progressive social legislation of any developing country—such as paid maternity leave—but as with other legislation, it is more often honored in the breach. One very successful social program that received national attention is Viva a Criança (Long Live Children), which was begun by the governor of the state of Ceará in the impoverished Northeast. A campaign of preventive health education, the program cut infant mortality in Ceará by one-third in only four years.<br />NON GOVERMENTAL ORGANIZATIONS AND OTHER ASSOCIATIONS: Arguably the most visible nongovernmental organization (NGO) in Brazil today is the Movimento dos Trabalhadores Rurais Sem Terra (MST), or Movement of Landless Rural Workers. Now with some 500,000 members, it began organizing the occupation of large unproductive estates in the mid-1980s after the federal government was slow to follow through on its promised program of land reform. A convoy of vehicles invade an estate at night so that by dawn too many people will have occupied the land for the police to be able to evict them. Such land occupations have escalated since the mid-1990s, enhanced by the Brazilian media's sympathetic portrayal of the MST as supporting a just cause. Partly in response to the MST, by the end of 1998 the federal agrarian reform program had settled nearly 290,000 families on eighteen million acres (7.3 million hectares) of land, and Brazilian President Fernando Henrique Cardoso had promised an acceleration of the process. Over the last decade or so many other Brazilian NGOs have been established dealing with the problems of street children, rural poverty, hunger, ecological issues, women's issues, and indigenous rights. Some have received international attention and foreign support.<br />GENDER ROLES AND STATUSES<br />DIVISION OF LABOR BY GENDER: Gender roles in Brazil vary to some extent by social class, race, and place of residence. White, middle-class and elite women living in large urban centers generally have more occupational choices and greater behavioral flexibility than their poorer, darker, rural sisters. Nevertheless, even when women are employed, men are seen as the primary providers of the family, with women's monetary contributions viewed as supplementary. Moreover, whether employed outside the home or not, women remain responsible for the proper functioning of the domestic sphere, with or without the aid of domestic servants. Today almost 40 percent of Brazilian women have jobs outside the home, although they hold only 2 percent of executive-level positions. And while the number of women in industry has more than tripled since 1970, they are primarily employed in low-skill, low-paying jobs in textiles and electronics. Poor women, especially those in the 20 percent of households with no permanently resident male, take whatever work they can get. Afro-Brazilian women are particularly disadvantaged in this regard; about 70 percent are employed in low-level agricultural, factory, and domestic service jobs. <br />THE RELATIVE STATUS OF WOMEN AND MEN: The mostly male Portuguese colonizers of Brazil brought with them the concept of machismo, which identifies men with authority and strength and women with weakness and subservience. Still, machismo is tempered in Brazil. It lacks the sharp-edged stress on heterosexuality and obsessive dread of homosexuality that characterizes it in other Latin societies. Nevertheless, this world view, combined with the patriarchy of the Catholic Church, laid the foundation for male dominance. As in most of Latin America, Brazil has a double standard in sexual matters. Traditionally, at least, men were expected to demonstrate their virility through premarital and extramarital sexual escapades, while women were supposed to quot;
save themselvesquot;
for their husbands and remain faithful after marriage. So-called quot;
crimes of passionquot;
are linked to this dual sexual standard. In the past—and occasionally even in modern times—men who killed their wives believing them to be unfaithful often went unpunished. Women have been slow to receive legal equality in Brazil. They were not given the vote until 1932 and, until the 1960s, women were the equivalent of children under Brazilian law. They needed permission from their fathers or husbands to leave the country and could not open bank accounts on their own. A women's rights movement emerged fairly late compared to that in the United States and has just started influencing legislation and the political process at the onset of the twenty-first century. While it has had some success, for example, in setting up special police stations for abused women, abortion is still illegal, although widespread. Moreover, the emphasis on youth and beauty as a measure of female worth remains unchanged and it is no coincidence that Brazilian plastic surgeons enjoy international renown.<br />SOCIALIZATION<br />CHILD REARING AND EDUCATION: Like so many aspects of Brazilian life, educational opportunities are tied to social class. Brazil has never invested heavily in public education and most middle-class and elite families send their children to private school. Education is also linked to race and geography. A white person in the Southeast has an average of 6.6 years of schooling, whereas a person of color living in the Northeast has spent an average of just 3.5 years in school. Despite the low level of funding, the last four decades of the twentieth century witnessed a significant increase in the number of Brazilians attending school and a concomitant rise in the literacy rate— in 2000 about 82 percent of Brazilians are literate. In 1960 almost half the population had little or no schooling, a figure that fell to 22 percent by 1990. Notably, school is one setting in which females are often more successful than males. In some regions of Brazil, girls are more likely than boys to be in school and women tend to be more literate than men.<br />HIGHER EDUCATION: Two-thirds of all public monies spent on education in Brazil goes to universities, the other third to public primary and secondary schools. While public universities in Brazil—widely considered superior to their private counterparts—charge no tuition, they have very competitive entrance exams which generally favor students who have attended costly private schools with high academic standards. The value placed on higher education by certain segments of Brazilian society may explain why it receives such a large share of revenue. Economic success in Brazil is said to come more from who one knows than what one knows, and where one is educated, influences who one knows. University education then, aside from training students in a particular profession, also confers (or confirms) social status which, in turn, provides the personal connections that can influence future success.<br />ECONOMY OVERVIEW OF BRAZIL<br />Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, Brazil's economy outweighs that of all other South American countries and Brazil is expanding its presence in world markets. Since 2003, Brazil has steadily improved macroeconomic stability, building up foreign reserves, reducing its debt profile by shifting its debt burden toward real denominated and domestically held instruments, adhering to an inflation target, and committing to fiscal responsibility. In 2008, Brazil became a net external creditor, Brazil's external debt totaled less than its foreign reserve holdings, and two ratings agencies awarded investment grade status to its debt. After record growth in 2007 and 2008, the onset of the global financial crisis hit Braxil in September 2008. Brazil's currency and its stock market - Bovespa - saw huge swings as foreign investors pulled out of Brazil. Brazil experienced two quarters of recession, as global demand for Brazil's commodity-based exports dwindled and external credit dried up. However, Brazil was one of the first emerging markets to begin a recovery. Consumer and investor confidence revived and GDP growth returned to positive in the second quarter, 2009. The Central Bank expects growth of 5% for 2010.<br />GDP (purchasing power parity):$2.024 trillion (2009 est.)$2.022 trillion (2008 est.)$1.924 trillion (2007 est.) GDP (official exchange rate):$1.482 trillion (2009 est.) GDP - real growth rate:0.1% (2009 est.)5.1% (2008 est.)6.1% (2007 est.) GDP - per capita (PPP):$10,200 (2009 est.)$10,300 (2008 est.)$9,900 (2007 est.) GDP - composition by sector:agriculture: 6.5% Labor force:95.21 million (2009 est.) Labor force - by occupation:agriculture: 20% Unemployment rate:7.4% (2009 est.)7.892% (2008 est.) Population below poverty line:26% (2005) Household income or consumption by percentage share:lowest 10%: 1.1% Distribution of family income - Gini index:56.7 (2005)60.7 (1998) Investment (gross fixed):17% of GDP (2009 est.) Public debt:46.8% of GDP (2009 est.)38.8% of GDP (2008 est.) Inflation rate (consumer prices):4.2% (2009 est.)5.9% (2008 est.) Central bank discount rate:20.48% (31 December 2008)17.85% (31 December 2007) Commercial bank prime lending rate:47.25% (31 December 2008)43.72% (31 December 2007) Stock of money:$95.03 billion (31 December 2008)$131.1 billion (31 December 2007) Stock of quasi money:$724.5 billion (31 December 2008)$792.8 billion (31 December 2007) Stock of domestic credit:$1.249 trillion (31 December 2008)$1.377 trillion (31 December 2007) Market value of publicly traded shares:$589.4 billion (31 December 2008)$1.37 trillion (31 December 2007)$711.1 billion (31 December 2006) Agriculture - products:coffee, soybeans, wheat, rice, corn, sugarcane, cocoa, citrus; beefIndustries:textiles, shoes, chemicals, cement, lumber, iron ore, tin, steel, aircraft, motor vehicles and parts, other machinery and equipmentIndustrial production growth rate:-7% (2009 est.) Electricity - production:438.8 billion kWh (2007 est.) Electricity - consumption:404.3 billion kWh (2007 est.) Electricity - exports:2.034 billion kWh (2007 est.) Electricity - imports:42.06 billion kWh; note - supplied by Paraguay (2008 est.) Oil - production:2.422 million bbl/day (2008 est.) Oil - consumption:2.52 million bbl/day (2008 est.) Oil - exports:570,100 bbl/day (2007 est.) Oil - imports:632,900 bbl/day (2007 est.) Oil - proved reserves:12.62 billion bbl (1 January 2009 est.) Natural gas - production:12.62 billion cu m (2008 est.) Natural gas - consumption:23.65 billion cu m (2008 est.) Natural gas - exports:0 cu m (2008 est.) Natural gas - imports:11.03 billion cu m (2008 est.) Natural gas - proved reserves:365 billion cu m (1 January 2009 est.) Current account balance:$-11.28 billion (2009 est.)$-28.19 billion (2008 est.) Exports:$158.9 billion (2009 est.)$197.9 billion (2008 est.) Exports - commodities:transport equipment, iron ore, soybeans, footwear, coffee, autosExports - partners:US 14.4%, China 12.4%, Argentina 8.4%, Netherlands 5%, Germany 4.5% (2008)Imports:$136 billion (2009 est.)$173.1 billion (2008 est.) Imports - commodities:machinery, electrical and transport equipment, chemical products, oil, automotive parts, electronicsImports - partners:US 14.9%, China 11.6%, Argentina 7.9%, Germany 7% (2008)Reserves of foreign exchange and gold:$238 billion (11 December 2009 est.)$193.8 billion (31 December 2008 est.) Debt - external:$216.1 billion (31 December 2009 est.)$262.9 billion (31 December 2008 est.) Stock of direct foreign investment - at home:$318.5 billion (31 December 2009 est.)$294 billion (31 December 2008 est.) Stock of direct foreign investment - abroad:$124.3 billion (31 December 2009 est.)$127.5 billion (31 December 2008 est.) Exchange rates:reals (BRL) per US dollar - 2.0322 (2009), 1.8644 (2008), 1.85 (2007), 2.1761 (2006), 2.4344 (2005)<br />Brazil: A country of Trade & Investment Opportunities<br />In these times of global financial turmoil and enormous challenges, finding new business opportunities becomes crucial. Since the Irish economy is currently struggling to provide a favourable environment for sustainable production and employment growth, it is critical to Irish businessmen to focus their attention overseas, in particular towards fast-growing markets, such as Brazil. The Brazilian economy is forecasted to grow approximately 5% in 2010. This remarkable economic performance is based not only on a strong export performance, but, primarily, on an increasing domestic demand. Over the last four years alone, Brazil’s middle class has increased by 24%, removing roughly 20 million people from the poverty line, according to Brazil’s Census Bureau. With a population of 192 million, the economy has already achieved significant growth. Currently, Brazil’s economy ranks in ninth place, with a GDP (PPP) of US$ 1,9 trillion in 2008, and accounts for more than half of South America’s output. In addition, according to the latest World Bank report, Brazil is the second main destination for foreign direct investment among the developing countries.<br />Due to strong macroeconomic indicators, the Brazilian economy has become more resilient to external shocks. However, as a consequence of the reduction of commodities’ prices as well as the fall of demand for manufactured and semi-manufactured goods, the Brazilian trade flow reached US$ 202 billion in the first nine months of 2009. These figures reveal a contraction of 28.3% over the same period of 2008, reversing, thus, a growing trend that dates back to 2003. In fact, Brazilian exports and imports had been performing strongly since 2003. In the period 2003-2008, exports grew at a nominal average rate of almost 22%, while imports grew even faster, at a nominal average rate of 26% in the same period. The recent drop in the Brazilian trade flow shows that Brazil’s economy was affected to a certain extent by the international financial crisis. It has not, however, cast shadow over the sound fundamentals of the economy and the big opportunities the country offers to its partners. Despite Brazil’s economic success, it is fair to say that the level of trade and investment between Brazil and Ireland does not match the potential of both countries. In fact, while total trade reached US$ 202 billion between January and October 2009, bilateral trade was only US$ 670 million (US$ 265 million exports from Brazil and US$ 404 million imports from Ireland). As export-led growth is the only sustainable route for Ireland, the growing Brazilian demand and the valuation of the “Real” (Brazil’s national currency) will certainly ensure high levels of imports in the coming years. On the other hand, Brazil is an important and competitive world supplier of both manufactured and primary goods, as well as a significant service provider. Therefore, more could enter the Irish market. There is plenty of room, thus, for the increase of bilateral trade and mutual beneficial cooperation.<br />Despite the existence of many investment opportunities in Brazil, the share of Irish investments in the total inflow of foreign capital is negligible. On a cumulative basis, it has not reached one billion dollar. However, in 2008, Brazil attracted US$ 45 billion foreign direct investments and the estimate for the current year is US$ 25 billion. The strong macroeconomic indicators were one of the facts that led Brazil to win the right to host the 2014 World Cup and the 2016 Olympic Games. These two major events will entail new business opportunities and investments for the enhancements of its infra-structure in the transport system, hotel accommodation, food service activities and other tourism-related services. Brazil offers a myriad of business opportunities for Irish companies, and the Embassy of Brazil in Dublin will be most pleased to provide further information and business contacts for those willing to tap into this dynamic, transparent and predictable market.<br />TRADE AND COMMERCE IN BRAZIL<br />FDI in BRAZIL<br />Foreign direct investments have played an important role in Brazil's economic development. FDI inflows into the country are mainly attracted by its big domestic market and the liberalized economy thanks to fair government policies. Most investments in Brazil have been made with a bias on the technological aspects of the economy. However, the service sector has attracted foreign investments too. The Brazilian FDI regime has remained liberal and has been plausible in its sum financial output for its economy. Brazil investment opportunities have a minor number of horizontal reservations or limitations. Brazil investment opportunities flourish in the various sectors of the economy; production as well as the service industries. With an economy estimated at $1.3 trillion, foreign direct investments are crucial in financing the country's payment balance due to investors taking out money from the capital markets and the slow recovery from the global recession.<br />Brazil's stock of direct foreign investments stands at $318.5 billion, according to 2009 figures. This shows a marked increase from the total FDI revenue from the previous year. Brazil's GDP stands at BRR 1,359.71 billion. In the year 2008, as the close of that year, the country's GDP stood at BRR 1,362.23 billion; a marked fall given the global recession. This represents a fall of 0.18%. Brazil's GDP for the year is expected to stand at BRR 1,434.44 billion, about five percentage point increase from the year 2009. As at January 2010, the country's FDI totaled US$2.41 billion. This was reflective of an annual growth rate of 63.9 per cent, the highest since 2000. Out of all these foreign investments at the beginning of this year, a majority of them were in the service sector. FDI figures for the first month 2010 were also higher than those posted in 2006 in the same month. The retail sector took US$364 million, auto manufacture US$258 million, transport US$248million and the metallurgy sector US$232 million. In the year 2006, Brazil's FDI peaked at US18.78 billion, the highest since 2001 with US$22.46 billion. This was still higher than had been recorded in the year 2005 with US$15.19 billion. Even so, the country's highest monthly FDI statistic was in 2007, June with the country getting $10.3 billion. Brazil is the world's tenth largest economy and Latin America's largest. Its economy is expected to top the five biggest in the world in the coming decades. Its GDP per capital stands at $10,200.<br /> EMERGING SECTORS<br />Education Industry<br />Brazil is regarded as one of the largest markets for investing in the education sector in the whole of South American continent. There are more than 70 million students in Brazil. Out of the 70 million students, approximately 93% of them are enrolled in receiving basic education and only 7% of the student population enroll themselves for undergraduate and postgraduate level education. As per the Higher Education census released by the Brazilian government in 2007, the country had about 2.281 higher educational institutes and a majority of these institutes are run by private players. This is mainly because the government of Brazil neither had the intention to invest in the higher education sector nor did it have the essential resources required to build an educational institute that provides top-class education.<br />In order to attract FOREIGN DIRECT INVESTMENT in the educational sector of Brazil the government provides tax benefits to investors. The Brazilian government provides the same protection to foreign capital investment as it gives to investments made by Brazilian locals. The Brazil government has also formulated favorable FDI policies to attract investments.<br />Real Estate Industry<br />The Real Estate Industry is one of the leading industries in Brazil. In recent years, the industry has grown significantly and it promises further growth. The Brazilian real estate industry offers attractive investment opportunities for foreign investors. For any foreign investor looking for investment opportunity in Brazil, the real estate industry of the country would fetch greater returns. In fact, if the real estate sector in Brazil is compared to its counterpart in the United States, you can see Brazil is a low risk investment opportunity. Moreover, real estate is less volatile in comparison to other investments such as stocks and hence, you can achieve stability in your investments by investing in Brazil’s real estate. Brazil has recorded a steady flow of foreign investment in this sector and there is a speculation that this is likely to grow in future. The foreign investment in Brazil’s real estate is mainly seen in construction of office buildings. There are two primary opportunities for foreign investment in Brazilian real estate sector<br />An intermediate term investment<br />Active participation in investment for long operational cycle (20 years) while earning the revenue<br />Alternatively, Investor can remain alert and take an exit before the project ends which also guarantees good returns. <br />The Foreign Institutional Investor (FII) in Brazil has a typical structure in the Brazilian market that offers fiscal advantages in investment sharing in real estate sector. Such advantages are not found in other forms of securitization in Brazil. The Brazilian Law8.668 (1993) defines all the operations such as buying and selling of assets and profit sharing of FII as tax-free. The current legislation clearly mentions that private investors are exempted from tax as long as they follow the rules of distribution that says they cannot own more than 10% shares in FII. The FII continues to make investment in shopping centers, office buildings and hotels in Brazil.<br /> <br />The Brazilian real estate market is likely to give you more than 10% annual return on your investments in real estate sector even after considering greatest market fluctuations and critical market conditions. If you decide to sell your shares in FII in the secondary market, you can expect annual return rate of 19.67% for an investment cycle of 37 months. Hence, Foreign investors are likely to make profit even if they decide to take an exit from the FII investment in shorter period of time.<br />Retail Market Industry<br />Brazil has emerged as one of the leading markets in the world. There is huge growth of sales in the retail sector. It is expected to grow continuously over next few years because of a constantly declining inflation rate which allows continuous expansion of credit conditions ease; i.e., substantial demand for durable goods and real incomes and growing demand for non-durable consumer goods.<br />The Northeastern Brazilian region has started attracting retailers. Grocery and non-grocery retailers are attracted by segments which are untapped. Heavyweight players in the market have plans to open new outlets and distribution centers in the region. Along with increasing preferences for the latest fashion apparels, there is high spending on clothing imports and apparel items. Brazil is ahead of China and India in clothing imports/exports and apparel consumption, and is considered as an emerging market for investment in retail apparels. There is huge potential for success of retail apparel in Brazil. Brazilian standards of retail markets are mixed predictably, accounting from fashion specialty retailers in urban areas to niche boutique retailers and from discounters, hypermarkets and large department stores through street traders. The retail sector in Brazil is as innovative as compared to any retail sector in the developed world. The retail market is increasingly growing internationally because the global chains do wake up to opportunities in a country which emerges from economic challenges in the long run. The retail supply channel in Brazil combines a mix of creative supply chain retail and financiers such as banks who operate retail chains directly. Even large retailers offer their own credit facilities. Credit, consumerism and scales are the day’s order for the Brazilian retail market.<br /> <br />There is a huge shift towards non-food products including textiles, gasoline stations, electronics and drug stores that is accounting for 24% of sales. Super markets have largely inclined towards non-food products. A huge boom in credit availability and a growing middle class are breaking the shackles of retail growth. There are huge opportunities for foreigners to invest in the Brazilian retail market and reap huge profits.<br />Health Industry<br />The health care industry in Brazil is one of the industries that is growing at an unprecedented rate and promises great investment opportunities. The Brazilian government is making sustainable efforts to revamp the prevailing healthcare system in the country, with a view to achieve greater efficiency. Brazil government’s ambitious plans to expand the health care industry provide ample investment opportunities for foreign investors. Investment opportunity lies in supplying medical equipment and IT products. Foreign investors can invest in providing patient monitoring services. To attract foreign investment in the country the Brazilian government has taken the initiative and has taken measures to introduce reformatory plans to restructure the healthcare delivery system. The government of Brazil has decentralized the health care sector in every Brazilian state and given them the autonomy.<br />Pharmaceutical industry<br />The Pharmaceutical industry, which is a part of the Health Industry, holds great potential for investment in Brazil. The country is being tipped as being one of the top seven countries in the world that has tremendous potential for growth in the pharmaceutical sector and is regarded as being the emerging market for investment. In terms of the revenue generated, the Brazilian Pharmaceutical industry is the 10th largest market in the world and is the second largest market in South America. The pharmaceutical industry is huge, and is responsible for providing employment for about 47,000 people in Brazil.<br />The Brazilian Pharmaceutical industry is one of the main industries that are the central point of the Brazilian government’s industrial policy. The government of Brazil, with a view to give a boost to the industry, has formulated a special financing program. The government aims to increase the local production of medicines, facilitate development of Research and Development centers and encourage mergers and alliances with foreign investors. The main motto of the Brazil government is to bring down the negative balance of trade of pharmaceuticals, improve the standards of drug quality in the country and enhance production of medicines. The government of Brazil has very ambitious plans of creating an environment in the country to attract investment of about $5 billion dollars. Thus, there is great opportunity for investors to invest in the sector and gain valuable returns on their investments.<br />In the past, the pharmaceutical manufacturing companies in Brazil lacked proper production technique. Also, the government imposed heavy taxes on medicines. As a result, not many local investors were keen to invest in the sector. However, the situation today has changed drastically. The government now has reduced the prices of drugs and this has created a dynamic investment environment in the country. The Brazilian government today actively encourages new investors in the sector by providing them the option of preferential purchase in public tenders. The government also offers special financial investment conditions, which are beneficial for the investors. Thus, with the backing of the government, the investors can gain tremendous advantage from investing in the health industry of Brazil.<br />