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Country feasibility for Burger King in Brazil - Research Paper Example

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Export is an influential component of the present economic growth rate that Brazil is experiencing, which has been described by commentators as highly impressive and fast track. Brazil’s success in export is widely attributed to the kind of trade partners it has the kind of…
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Country feasibility for Burger King in Brazil
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Download file to see previous pages For instance, it is documented that from China alone, Brazil made as much as US$30.8 billion in the year 2010. The chart below gives a detailed value of trade for the top ten trade partners of Brazil.
In terms of trade surplus, China was identified as the strongest with $5.2 billion achievement in 2010 while Argentina gained $4.1 billion with the United States of America recording $7.8 billion. Workman notes that “it appears that the lower American dollar paid dividends in 2010, driving up Brazilian demand for comparatively lower-priced U.S. goods.”
In terms of macroeconomic indicators, Brazil could be classified as an excellent performer in the past few years, counting as one of the world’s major economic competitors. The table below is a summary of figures of some of Brazil’s major macroeconomic indicators for various years.
Laws that govern foreign direct investments are very crucial to the economic development of every nation, including companies and corporate bodies who would be seeking for investment in one country or the other. To this, Brazil has a number of foreign ownership laws that are meant to be of great economic cover to both Brazil as a country and foreign investors such as Burger King. Some highlights of the laws include the fact that the percentage of foreign ownership allowed is 30% as of 2002 (Encyclopedia of the Nations, 2012). This is a figure that could be said to be of very good favor to foreign investors, of which King Burger can take advantage. In fact, since 1995, “the petroleum, telecommunications, mining, power generation, and internal transportation sectors were opened up to foreign investment” (Encyclopedia of the Nations, 2012).
Brazil boasts and benefits from a very large consignment of foreign investor profits. However, “repatriation of foreign capital registered with the Central Bank of Brazil to its country of origin requires no prior ...Download file to see next pagesRead More
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