Foreign Investment In Brazil - Research Paper Example

A country’s external environment will play a key role in facilitating as well as dampening new entering foreign firms. External environment constitutes various factors particularly cultural, political, economic and legal factors. To initiate and actualize a successful entry, firms have to study all these external environmental factors in-depth, so they can formulate apt strategies including entry strategies, recruitment strategies, marketing strategies, operational strategies, etc, etc. Only when studying these factors, the organizations and the management team will come across various aspects, which may aid them to carry out a successful entry as well as aspects, which may impede them in the entry.

So, there will be advantages as well as challenges. For example, the South American country of Brazil has some distinct environmental factors, which will surely act as an advantage as well as challenge for the new firms, who are planning to enter it. This is applicable to the cell phone firms as well. So, this paper will analyze the designated foreign market of Brazil, by summarizing its different external environmental factors that could make an impact on the cell phone company, which is planning to enter Brazil.

Brazil is a land of diversity and so its external environmental factors of culture, political, economic, lifestyle, etc is also of very diverse nature. Historically speaking, Brazil became the land for the migrants from different parts of the world. From early centuries and during the colonial period, Native Americans, Portuguese from European continent and the Africans started settling in Brazil and formed the bulk of Brazilian population. This coexistence and mixing of three groups of population and importantly their culture lead to the evolution of the basic Brazilian culture.

Then, more European and Asian migrants started arriving in Brazil in the late 19th century and mingled with the