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International Marketing Outlook: Brazil

Market OpportunityHome to half of South America s population and one of its emerging market economies, Brazil is a nation with many prospects for investment. The Brazilian economy s healthy GDP growth rate of 5.4% in 2007 suggests sustained future prosperity and continued growth in consumer spending. With the Brazilian real steadily appreciating against the American dollar, Brazilian importation of U. S. goods should only strengthen in the future.

Another market opportunity for reaching potential customers is direct marketing. Brazil has an excellent postal service, and direct marketing is a proven way to reach over 35 million middle-class Brazilian consumers. Online marketing will be discussed later in this report. Lastly, U. S. firms should emphasize the quality of their products in order to compete successfully with possible lower prices offered by Chinese and other country s imports to Brazil.

On the other hand, limitations do exist in the Brazilian economy. Brazil maintains a highly unequal income distribution, a pressing problem for its society. The top ten percent of income earners constitute 44.8% of consumption. In addition, crime, <ins>'''personal injury lawyers philadelphia'''</ins> drug abuse, poor public education, and environmental degradation are prevalent. Black and gray markets hamper tax collection and promote technological and consumer goods piracy. Furthermore, an overloaded legal system has led to low enforcement of business law and long delays in hearing cases.

Best Industry SegmentsBrazil requires significant investment in virtually all areas of its economy and infrastructure, providing compelling opportunities for American firms seeking expansion into foreign markets. Insurance is the largest imported good as $5.9 billion in U. S. insurer participation was issued in Brazil in 2005. Brazil will purchase a projected total of $3.3 billion in oil and gas equipment from the U. S. this calendar year. ''Car Accident Lawyers Philadelphia'' Other industries among high demand in the Brazilian economy include medical equipment, airports products, and telecommunications equipment, whose estimated import values from the U. S. for 2007 are $792 million, $671 million, and $641 million, respectively. In addition, Brazil represents the tenth largest pharmaceutical market worldwide, with an estimated [http://phillypersonalinjurylaw.info/ http://phillypersonalinjurylaw.info/] $624 million in imports from the U. S. this year alone. And due to recent increases in consumer spending, American companies should consider exporting their consumer products to Brazil.

Regulatory and Tariff <ins>Car Accident Attorney Philadelphia</ins> LandscapeSignificant trade barriers exist in Brazil. High tariff rates in many areas, from 0-35%, stem mainly from the Import Duty II, Industrialized Product Tax IPI, and Merchandise and Service Circulation Tax ICMS. Challenging customs regulations such as import licensing also inhibit expansion into the Brazilian market.

Online ''philadelphia personal injury lawyer'' Marketing ProfileThe Brazilian people compose the sixth largest population of internet users worldwide and thus there is enormous potential for success for internet marketing in Brazil. Its fifty million routine web navigators represent 3.6% of the global online community and crossover with consumers from Portugal. However, difficulties remain in the acceptability of credit cards for e-commerce transactions.

Many American companies find that the opportunities for increasing revenue through internet marketing in Brazil outweigh the risks. Portuguese is the eighth most popular language among internet users and thus marketing in Brazil, with its relatively high purchasing power compared to other South American countries, is a very lucrative potential business venture. However, despite the Brazilian market potential, important challenges remain for U. S. businesses seeking to expand into Brazil.