International business Essay Example | Topics and Well Written Essays - 1250 words - 3

International business - Essay Example For the purposes of this essay, I intend to open up a logging business in Brazil. I will need to present a lot of information about the Brazilian economy and the logging industry in order to feel comfortable that my investment in Brazil will return dividends, be sustainable, and jump through the various legal and regulatory hoops. Brazil is by far the largest country in South America, both in geographical size and in population. It is nearly half of all of South America, with very diverse physical characteristics, and a population of nearly 200 million. It is a democracy, but it is a young democracy, with institutions that are still developing and are still slightly vulnerable. The main language is Portuguese (not Spanish) and there are colonial ties to Portugal. The population is very diverse, with native people mixed with African people, mixed with European peoples. The political system is similar to that in the United States. The President is elected and is head of government and head of state and appoints his cabinet. The current President Luiz Inà ¡cio Lula da Silva is a leftist, but he is also friendly to business. He has so far overseen a great deal of economic growth in the new millennium and also additional labour and environmental protections. The legal system in Brazil is based on civil law. The system is not very efficient and this is something to take into account when starting a business in Brazil. It can take years to resolve suits and enforce contracts. The tax system is also very difficult to navigate. According to one study it takes the typical Brazilian company 2,600 hours a year to comply with the tax code.1 These are important disincentives to investing in Brazil. I will have to spend extra money to find good accountants and lawyers to help me out. Starting a business is not always easy in Brazil, even if it is getting easier. A recent