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Brazil as emerging market by sayyed khawar abbas

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Sayyed Abbas

The document provides an overview of Brazil as an emerging market. It discusses Brazil's inclusion in the BRIC and BRICS groups of emerging economies and provides statistics on Brazil's GDP and economic growth. Key industries in Brazil like agriculture, mining, manufacturing and services are outlined. The document also summarizes Brazil's economic history and reforms. Major Brazilian companies active in sectors like aviation, oil/gas, pulp/paper, mining and telecom are profiled. Brazil's competitive advantages in areas like natural resources, tourism, and sporting events are highlighted. Future challenges for Brazil's economy are also noted.

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BRAZIL- EMERGING MARKET PRESENTED TO MAM PROF DR. MUQADDAS REHMAN
PRESENTED BY Sadia Arshad MC15-502 Umm-e-Aimen MC15-512 Mariam Ramay MC15-523 Kiran Saeed MC15-525 Salman Haidery MC15-529 Sehrish Iftikhar MC15-531 Shakaib Khalil MC15-532 Adeena Safdar MC15-533 Muhammad Imran MC15-548 Sayyed Khawar Abbas MC15-605
EMERGING MARKETS "Emerging Markets are countries that are restructuring their economies along market-oriented lines and offer a wealth of opportunities in trade, technology transfers, and foreign direct investment. (Chuan Li of University of Iowa's Center for International Finance and Development) The term "emerging markets" was coined by Antoine van Agtmael and dates back to 1981.
BRIC BRIC is a grouping acronym was coined in 2001 by Jim O'Neill from investment bank Goldman Sachs in a paper entitled "Building Better Global Economic BRICs They might overtake the G7 economies by 2027 (SOME SOURCES) Goldman Sachs has argued IN 2050 could eclipse TO G7
BRIC B Brazil R Russia I India C - China
BRIC These countries encompass over 25% of the world's land coverage, 40% of the world's population and hold a combined GDP (PPP) of 33,690 billion dollars. GDP (PPP) Total : $33,690 billion (2015) China $18,976 billion India $7,997 billion Russia $3,458 billion Brazil $3,259 billion
BRIC to BRICS August 2010 Jim O'Neill of Goldman Sachs argued that Africa could be considered the next BRIC South Africa was officially admitted as a BRIC nation on December 24, 2010, President Jacob Zuma attend the BRICS summit in Sanya in April 2011 as a full member
BRAZIL Largest and most populous country in South America. 5th largest country by geographical area. 5th most populous country in the world. 4th most populous democracy in the world.
BRAZIL-FDI FDI 5455 USD Million in January of 2016 FDI averaged 3375.62 USD Million from 1995 until 2016 All time high of 20427 USD Million in December of 2010 2007 List by the UNCTAD 11TH , 2013 List by the CIA World Factbook 13TH
BRAZIL Source: McKinsey Global Institute (2014). Connecting Brazil to the world: A path to inclusive growth.
The Opening Phase (1964 - 1974) Brazilian military coup occurred in 1964 Priority was to reverse the high inflation rate to reduce the public deficit Imports allowed, because not yet developed "Economic Miracle. 1969 and 1973, the National Development Program
The Closure Phase (1974 -1979) Duetothefirstoilcrisisin1973, BrazilsgovernmentlaunchedthesecondPNDin1974 Newforeignloans,searchfornewexportmarketsandtheattempttosubstituteimports ThenationalalcoholprogramalsoknownasPr坦Alcool waslaunched in 1975 ThePetrobr叩sdiscoveryofnewoilfieldsinRiodeJaneiro In1976theimportofautomobilestoBrazilwasprohibitedbythegovernment
The Lost Decade secondoilcrisis,in1979, increase the import prices Jo達oFigueiredo'sgovernment(1979to1985)introducedimportrestrictionsandpricecontrols
The End of Dictatorship In1985, Figueiredo'sgovernmentwasdeposed 1988,importtaxrateof85%wasunfavorableforcheapermodels Accumulatedinflationremainedin1782.90%in 1989 in 1990thatcarimportswerefinallyallowed, openingmarket
The End of Dictatorship Planlaunchedin1994in ordertostabilizethenationalcurrency,From1995to2000,theimportsresultedon adeficitofUSD24.1 billion Against asurplusofUSD60.4billion, from1990 to1994.In2000,accordingtotheWorld TradeOrganization, Brazilparticipatedinworldtrade,with0.9%ofimports
Government of Brazil Federal Government of Brazil Democratic Republic Executive Legislative and Judicial Executives: Dilma Rousseff Head of State and Head of Government of Brazil (Since 1 January 2011) Michel Temer Vice President of Brazil
Global Market Share Rank in the world trade 2014: Merchandise 25 Commercial services 32
Merchandise Trade Its share in the world total export is 1.8 Breakdown in economy's total export: Agricultural product 39.0 Fuels And Mining 24.4 Manufacturers 33.3 By main destination: European Union 18.7 China 18.1 United States 12.1 Argentina 6.3 Japan 3.0
Commercial Services Trade Its share in world total exports 0.79 Breakdown in economy's total export: Goods related services 1.0 Transportation 14.9 Travel 17.5 Other commercial services 66.7
Sectorial Break-up World bank report 2014
Top Ten Exports 1. Oil seed: US$21.2 billion (11.1% of total exports) 2. Ores, slag, ash: $16.7 billion (8.7%) 3. Oil: $13.7 billion (7.2%) 4. Meat: $13.1 billion (6.8%) 5. Machines, engines, pumps: $11.4 billion (5.9%) 6. Vehicles: $9.6 billion (5%) 7. Iron and steel: $8.9 billion (4.7%) 8. Sugar: $7.8 billion (4.1%) 9. Food waste, animal fodder: $6.2 billion (3.2%) 10. Coffee, tea and spices: $6 billion (3.2%)
Industry: Agriculture & Commodities Agriculture & Commodities In the foreign markets, it answers for 25% of global exports of raw cane and 50% of refined sugar; Reasons: Rapid expansion of sugar cane production at globally competitive prices. Decline in exports by previously large suppliers, particularly the EU and Cuba. Highly competitive costs of production . Brazil, especially in the Center/South region, retains cost advantages from large average mill size and long crushing season.
Brazil maintains dominant share of world sugar exports
Industry: Agriculture & Commodities It is the world leader in soybean exports and is responsible for 80% of the planets orange juice. A pioneer and leader in the manufacture of short- fibre timber cellulose, Brazil has also achieved positive results within the packaging sector, in which it is the fifth largest world producer.
Diversified Industry Brazil accounts for three fifths of the South American economys industrial production. Accounting for one-third of GDP, Brazil's diverse industries range from Automobiles, Steel Petrochemicals, Computers Aircraft, Consumer durables. Top companies among these diversified industries are: Embraer Aracruz Celulose
Brazil Crude oil exports by Region and Country
Industry: Service Sector Brazil has a diverse and sophisticated services industry as well. During the early 1990s, the banking sector accounted for as much as 16% of the GDP. Top performers in this sectors are: Banco Bradesco Banco do Brasil
Brazil, One of the Biggest E-Sales Opportunity in the World Brazil is the 4th largest Internet market globally with 120 million Internet users out of a total population of more than 200 million. According to Am辿ricaEconom鱈a Intelligence, Brazil represents about 60% of all B2C e-commerce in Latin America.
Top Ten Exports
Larger International Trade Players from Brazil Petrobras (oil, petrochemicals) Vale S.A. (diversified metals, mining) JBS S.A. (food, beverages) Grupo P達o de A巽炭car (retail including online) BRF S.A. (food) Oi (telecommunications)
International Trade Players from Brazil According to global trade intelligence firm Zepol, the following smaller companies are also examples of Brazilian exporters: American Safety Razor Brazil (razor blades, adipic acid) Hapag Lloyd Brazil (containers, siliceous earths, white cement) Vanguard Logistics Services Do Brazil (transmission belts, rubber/plastic molds, malt beer) Inergy Automotive Systems Do Brazil (combustion engine internal pumps, gas station external pumps) Afil Import Export E Comercio (garlic, flaxseed, corn)
Leading Brazilian Firms Embraer ( NYSE: ERJ) Headquartered in S達o Paulo, Brazil. Embraer is a Brazilian aerospace conglomerate. The company produces commercial, military, and corporate aircraft, as well as providing related aerospace services. It also has maintenance and commercial sites in the USA and commercial offices in France, Singapore and China. It recently replaced Canada based Bombardier Inc. to become the 3rd largest producer of aircrafts. Brazil only comprises about one-fifth of Embraer's revenue. At the end of 2014, Embraer had a order backlog totalling US$20.9 billion.
Manufacturer: Embraer It has delivered more than 1000 of these aircrafts. In 2003, Embraer entered a partnership with the Harbin Aircraft Manufacturing Corporation of Harbin, Chinato produce ERJ 145 for the Chinese market.
Revenue Per Region
Commodities: Petro Bras Petrobras (NYSE: PBR) Is a semi-public Brazilian energy company headquartered in Rio de Janeiro founded in 1953. in 2008, Petrobras was the worlds fifth-largest company worth $310 billion. Since then it has lost more than 90 percent of its value. The market cap of Brazils oil giant stands at just $19 billion with its shares trading near $1--and some analysts say the actual equity value is zero. Its shares trade at just 0.21 times the companys book value, the least among its oil industry peers, according to Bloomberg data. It operated the world's largest oil platform - the Petrobras 36 Oil Platform - until an explosion on 15 March 2001 led to its sinking on 20 March 2001. Petrobras is a world leader in development of advanced technology from deep-water and ultra-deep water oil production.
Petrobas Assets Seen as less and less valuable
Core Competencies Petrobras works extensively with foreign acquisitions too, buying and controlling the most important energy companies in South America and exploring huge deep-water fields of West Africa and the Gulf of Mexico.
Materials: Aracruz Celulose Founded in 1972. In 2009 the company merged with VCP and renamed Fibria. Is a major Brazilian manufacturer of pulp. It is headquartered in Sao Paulo. The company is the world's leading supplier of bleached eucalyptus pulp. The company has an annual production capacity of 2.4 million tons, through two mill sites. Aracruz Celulose (Fibria) posted net income of R$ 614 million in the second quarter of the year. Principal Competitors:Companhia Suzano de Papel e Celulose; Industrias Klabin de Papel e Celulose S.A.; Votorantim Celulose e Papel S.A.; Bahia Sul Celulose S.A.
Mining: Vale It is one of the largest logistics operators in Brazil. In addition to being the second-largest mining company in the world, it is also the largest producer of iron ore, pellets, and second largest of nickel. Total iron ore reserves of about 14 billion metric tons. A $150 billion diversified mining company, it has the capacity to produce about 400 million tons of iron ore a year and accounts for more than 80% of Brazils total iron ore exports In the electric energy sector, the company participates in consortia and currently operates nine hydroelectric plants. Vale has managed to establish itself as a global mining company through joint ventures and acquisitions abroad. Vale has participation on mining operations in Finland, Canada, Australia, Mongolia, China, India, Angola, South Africa, Chile, Peru and other countries. .Vales chief rivals are the Australian diversified mining groups BHP Billiton and Rio Tinto
Global Iron ore Market Share
Oi (Telecmunication) Oi formerly known as Telemar, is the largest telecommunications company in Brazil and South America, both in terms of subscribers and revenues. It is headquartered in Rio de Janeiro. OOi'smajor subsidiaries include Telemar and Brasil Telecom. Brazils telecom revenues reach R$234 billion At the end of 2013 Oi had 74.5 million subscribers, including 16.9 million for landline, 50.3 million for wireless , 5.3 million for ADSL, and 1 million for other services.
CORE COMPETENCIES A Changing Business Climate World-class Sporting Events Diversified Economy Natural Resources Tourism
A CHANGING BUSINESS CLIMATE The Brazilian government is trying to simplify its business licensing processes to make it easier for companies to become legitimate. If it succeeds, strong small companies will grow, which will help the Brazilian economy overall. The World Bank ranks Brazil 124 out of 183 economies for ease of doing business in 2014
World-class Sporting Events Hosting mega events have traditionally been a privilege of developed nations. 2007: Brazil was the sole bidder and won the right to host 2014: 2nd time brazil hosted FIFA event October 2, 2009: International Olympics Committee (IOC) announced Brazil as the host country of the 2016 Summer Olympics This marks the first time that South America has ever hosted the Olympics.
World-class Sporting Events Contd. Hosting the games will inject $51.1 billion into Latin Americas largest economy through 2027. Additionally, the Olympics and Paralympics will create nearly 121,000 jobs a year in the seven-year period. With just two deals, the organizers have already secured an estimated $700 million in local sponsorships, which was a new record for the Olympics.
DIVERSIFIED ECONOMY Brazils diverse economy is characterized by well developed agricultural, mining, manufacturing and service sectors. There is increased globalization where the Brazilian government policies favor exports. A diverse economy offers many investment opportunities in several segments in manufacturing and services industries More business friendly environment than other emerging countries. Established transportation networks and distribution channels in most industrialized areas.
NATURAL RESOURCES Vast amount of natural resources Bauxite, gold, iron ore, manganese, nickel, phosphates, platinum, tin, rare earth elements, uranium, petroleum, hydropower and timber. No need to import large quantities , good local availability of key resources. With its ideal agricultural climate, Brazil boasts a healthy export trade in coffee, sugar, soya beans, textiles and electrical equipment.
TOURISM Brazil is a land filled with joyous people, beautiful landscapes, the Amazon Rain forest, untouched tropical beaches some of the most beautiful in the world historical cities with incredible night life and some of the worlds most breathtaking waterfalls. The growing tourist and eco-tourism industries cater to all tastes. In more recent years it has begun to attract foreigners from around the world. In 2012, 5.7 million international tourists visited Brazil. Tourism is expected to soar further as the country will host the 2016 Olympics.
Future Challenges 1.Productivity growth 2.Tax burden ("Brazil Cost) 3.Integration into global markets 4.Focus on key commodities 5.Expand infrastructure
Brazil as emerging market by sayyed khawar abbas

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Brazil as emerging market by sayyed khawar abbas

  • 2. PRESENTED BY Sadia Arshad MC15-502 Umm-e-Aimen MC15-512 Mariam Ramay MC15-523 Kiran Saeed MC15-525 Salman Haidery MC15-529 Sehrish Iftikhar MC15-531 Shakaib Khalil MC15-532 Adeena Safdar MC15-533 Muhammad Imran MC15-548 Sayyed Khawar Abbas MC15-605
  • 3. EMERGING MARKETS "Emerging Markets are countries that are restructuring their economies along market-oriented lines and offer a wealth of opportunities in trade, technology transfers, and foreign direct investment. (Chuan Li of University of Iowa's Center for International Finance and Development) The term "emerging markets" was coined by Antoine van Agtmael and dates back to 1981.
  • 4. BRIC BRIC is a grouping acronym was coined in 2001 by Jim O'Neill from investment bank Goldman Sachs in a paper entitled "Building Better Global Economic BRICs They might overtake the G7 economies by 2027 (SOME SOURCES) Goldman Sachs has argued IN 2050 could eclipse TO G7
  • 5. BRIC B Brazil R Russia I India C - China
  • 6. BRIC These countries encompass over 25% of the world's land coverage, 40% of the world's population and hold a combined GDP (PPP) of 33,690 billion dollars. GDP (PPP) Total : $33,690 billion (2015) China $18,976 billion India $7,997 billion Russia $3,458 billion Brazil $3,259 billion
  • 7. BRIC to BRICS August 2010 Jim O'Neill of Goldman Sachs argued that Africa could be considered the next BRIC South Africa was officially admitted as a BRIC nation on December 24, 2010, President Jacob Zuma attend the BRICS summit in Sanya in April 2011 as a full member
  • 8. BRAZIL Largest and most populous country in South America. 5th largest country by geographical area. 5th most populous country in the world. 4th most populous democracy in the world.
  • 9. BRAZIL-FDI FDI 5455 USD Million in January of 2016 FDI averaged 3375.62 USD Million from 1995 until 2016 All time high of 20427 USD Million in December of 2010 2007 List by the UNCTAD 11TH , 2013 List by the CIA World Factbook 13TH
  • 10. BRAZIL Source: McKinsey Global Institute (2014). Connecting Brazil to the world: A path to inclusive growth.
  • 11. The Opening Phase (1964 - 1974) Brazilian military coup occurred in 1964 Priority was to reverse the high inflation rate to reduce the public deficit Imports allowed, because not yet developed "Economic Miracle. 1969 and 1973, the National Development Program
  • 12. The Closure Phase (1974 -1979) Duetothefirstoilcrisisin1973, BrazilsgovernmentlaunchedthesecondPNDin1974 Newforeignloans,searchfornewexportmarketsandtheattempttosubstituteimports ThenationalalcoholprogramalsoknownasPr坦Alcool waslaunched in 1975 ThePetrobr叩sdiscoveryofnewoilfieldsinRiodeJaneiro In1976theimportofautomobilestoBrazilwasprohibitedbythegovernment
  • 13. The Lost Decade secondoilcrisis,in1979, increase the import prices Jo達oFigueiredo'sgovernment(1979to1985)introducedimportrestrictionsandpricecontrols
  • 14. The End of Dictatorship In1985, Figueiredo'sgovernmentwasdeposed 1988,importtaxrateof85%wasunfavorableforcheapermodels Accumulatedinflationremainedin1782.90%in 1989 in 1990thatcarimportswerefinallyallowed, openingmarket
  • 15. The End of Dictatorship Planlaunchedin1994in ordertostabilizethenationalcurrency,From1995to2000,theimportsresultedon adeficitofUSD24.1 billion Against asurplusofUSD60.4billion, from1990 to1994.In2000,accordingtotheWorld TradeOrganization, Brazilparticipatedinworldtrade,with0.9%ofimports
  • 16. Government of Brazil Federal Government of Brazil Democratic Republic Executive Legislative and Judicial Executives: Dilma Rousseff Head of State and Head of Government of Brazil (Since 1 January 2011) Michel Temer Vice President of Brazil
  • 17. Global Market Share Rank in the world trade 2014: Merchandise 25 Commercial services 32
  • 18. Merchandise Trade Its share in the world total export is 1.8 Breakdown in economy's total export: Agricultural product 39.0 Fuels And Mining 24.4 Manufacturers 33.3 By main destination: European Union 18.7 China 18.1 United States 12.1 Argentina 6.3 Japan 3.0
  • 19. Commercial Services Trade Its share in world total exports 0.79 Breakdown in economy's total export: Goods related services 1.0 Transportation 14.9 Travel 17.5 Other commercial services 66.7
  • 21. Top Ten Exports 1. Oil seed: US$21.2 billion (11.1% of total exports) 2. Ores, slag, ash: $16.7 billion (8.7%) 3. Oil: $13.7 billion (7.2%) 4. Meat: $13.1 billion (6.8%) 5. Machines, engines, pumps: $11.4 billion (5.9%) 6. Vehicles: $9.6 billion (5%) 7. Iron and steel: $8.9 billion (4.7%) 8. Sugar: $7.8 billion (4.1%) 9. Food waste, animal fodder: $6.2 billion (3.2%) 10. Coffee, tea and spices: $6 billion (3.2%)
  • 22. Industry: Agriculture & Commodities Agriculture & Commodities In the foreign markets, it answers for 25% of global exports of raw cane and 50% of refined sugar; Reasons: Rapid expansion of sugar cane production at globally competitive prices. Decline in exports by previously large suppliers, particularly the EU and Cuba. Highly competitive costs of production . Brazil, especially in the Center/South region, retains cost advantages from large average mill size and long crushing season.
  • 23. Brazil maintains dominant share of world sugar exports
  • 24. Industry: Agriculture & Commodities It is the world leader in soybean exports and is responsible for 80% of the planets orange juice. A pioneer and leader in the manufacture of short- fibre timber cellulose, Brazil has also achieved positive results within the packaging sector, in which it is the fifth largest world producer.
  • 25. Diversified Industry Brazil accounts for three fifths of the South American economys industrial production. Accounting for one-third of GDP, Brazil's diverse industries range from Automobiles, Steel Petrochemicals, Computers Aircraft, Consumer durables. Top companies among these diversified industries are: Embraer Aracruz Celulose
  • 26. Brazil Crude oil exports by Region and Country
  • 27. Industry: Service Sector Brazil has a diverse and sophisticated services industry as well. During the early 1990s, the banking sector accounted for as much as 16% of the GDP. Top performers in this sectors are: Banco Bradesco Banco do Brasil
  • 28. Brazil, One of the Biggest E-Sales Opportunity in the World Brazil is the 4th largest Internet market globally with 120 million Internet users out of a total population of more than 200 million. According to Am辿ricaEconom鱈a Intelligence, Brazil represents about 60% of all B2C e-commerce in Latin America.
  • 30. Larger International Trade Players from Brazil Petrobras (oil, petrochemicals) Vale S.A. (diversified metals, mining) JBS S.A. (food, beverages) Grupo P達o de A巽炭car (retail including online) BRF S.A. (food) Oi (telecommunications)
  • 31. International Trade Players from Brazil According to global trade intelligence firm Zepol, the following smaller companies are also examples of Brazilian exporters: American Safety Razor Brazil (razor blades, adipic acid) Hapag Lloyd Brazil (containers, siliceous earths, white cement) Vanguard Logistics Services Do Brazil (transmission belts, rubber/plastic molds, malt beer) Inergy Automotive Systems Do Brazil (combustion engine internal pumps, gas station external pumps) Afil Import Export E Comercio (garlic, flaxseed, corn)
  • 32. Leading Brazilian Firms Embraer ( NYSE: ERJ) Headquartered in S達o Paulo, Brazil. Embraer is a Brazilian aerospace conglomerate. The company produces commercial, military, and corporate aircraft, as well as providing related aerospace services. It also has maintenance and commercial sites in the USA and commercial offices in France, Singapore and China. It recently replaced Canada based Bombardier Inc. to become the 3rd largest producer of aircrafts. Brazil only comprises about one-fifth of Embraer's revenue. At the end of 2014, Embraer had a order backlog totalling US$20.9 billion.
  • 33. Manufacturer: Embraer It has delivered more than 1000 of these aircrafts. In 2003, Embraer entered a partnership with the Harbin Aircraft Manufacturing Corporation of Harbin, Chinato produce ERJ 145 for the Chinese market.
  • 35. Commodities: Petro Bras Petrobras (NYSE: PBR) Is a semi-public Brazilian energy company headquartered in Rio de Janeiro founded in 1953. in 2008, Petrobras was the worlds fifth-largest company worth $310 billion. Since then it has lost more than 90 percent of its value. The market cap of Brazils oil giant stands at just $19 billion with its shares trading near $1--and some analysts say the actual equity value is zero. Its shares trade at just 0.21 times the companys book value, the least among its oil industry peers, according to Bloomberg data. It operated the world's largest oil platform - the Petrobras 36 Oil Platform - until an explosion on 15 March 2001 led to its sinking on 20 March 2001. Petrobras is a world leader in development of advanced technology from deep-water and ultra-deep water oil production.
  • 36. Petrobas Assets Seen as less and less valuable
  • 37. Core Competencies Petrobras works extensively with foreign acquisitions too, buying and controlling the most important energy companies in South America and exploring huge deep-water fields of West Africa and the Gulf of Mexico.
  • 38. Materials: Aracruz Celulose Founded in 1972. In 2009 the company merged with VCP and renamed Fibria. Is a major Brazilian manufacturer of pulp. It is headquartered in Sao Paulo. The company is the world's leading supplier of bleached eucalyptus pulp. The company has an annual production capacity of 2.4 million tons, through two mill sites. Aracruz Celulose (Fibria) posted net income of R$ 614 million in the second quarter of the year. Principal Competitors:Companhia Suzano de Papel e Celulose; Industrias Klabin de Papel e Celulose S.A.; Votorantim Celulose e Papel S.A.; Bahia Sul Celulose S.A.
  • 39. Mining: Vale It is one of the largest logistics operators in Brazil. In addition to being the second-largest mining company in the world, it is also the largest producer of iron ore, pellets, and second largest of nickel. Total iron ore reserves of about 14 billion metric tons. A $150 billion diversified mining company, it has the capacity to produce about 400 million tons of iron ore a year and accounts for more than 80% of Brazils total iron ore exports In the electric energy sector, the company participates in consortia and currently operates nine hydroelectric plants. Vale has managed to establish itself as a global mining company through joint ventures and acquisitions abroad. Vale has participation on mining operations in Finland, Canada, Australia, Mongolia, China, India, Angola, South Africa, Chile, Peru and other countries. .Vales chief rivals are the Australian diversified mining groups BHP Billiton and Rio Tinto
  • 40. Global Iron ore Market Share
  • 41. Oi (Telecmunication) Oi formerly known as Telemar, is the largest telecommunications company in Brazil and South America, both in terms of subscribers and revenues. It is headquartered in Rio de Janeiro. OOi'smajor subsidiaries include Telemar and Brasil Telecom. Brazils telecom revenues reach R$234 billion At the end of 2013 Oi had 74.5 million subscribers, including 16.9 million for landline, 50.3 million for wireless , 5.3 million for ADSL, and 1 million for other services.
  • 42. CORE COMPETENCIES A Changing Business Climate World-class Sporting Events Diversified Economy Natural Resources Tourism
  • 43. A CHANGING BUSINESS CLIMATE The Brazilian government is trying to simplify its business licensing processes to make it easier for companies to become legitimate. If it succeeds, strong small companies will grow, which will help the Brazilian economy overall. The World Bank ranks Brazil 124 out of 183 economies for ease of doing business in 2014
  • 44. World-class Sporting Events Hosting mega events have traditionally been a privilege of developed nations. 2007: Brazil was the sole bidder and won the right to host 2014: 2nd time brazil hosted FIFA event October 2, 2009: International Olympics Committee (IOC) announced Brazil as the host country of the 2016 Summer Olympics This marks the first time that South America has ever hosted the Olympics.
  • 45. World-class Sporting Events Contd. Hosting the games will inject $51.1 billion into Latin Americas largest economy through 2027. Additionally, the Olympics and Paralympics will create nearly 121,000 jobs a year in the seven-year period. With just two deals, the organizers have already secured an estimated $700 million in local sponsorships, which was a new record for the Olympics.
  • 46. DIVERSIFIED ECONOMY Brazils diverse economy is characterized by well developed agricultural, mining, manufacturing and service sectors. There is increased globalization where the Brazilian government policies favor exports. A diverse economy offers many investment opportunities in several segments in manufacturing and services industries More business friendly environment than other emerging countries. Established transportation networks and distribution channels in most industrialized areas.
  • 47. NATURAL RESOURCES Vast amount of natural resources Bauxite, gold, iron ore, manganese, nickel, phosphates, platinum, tin, rare earth elements, uranium, petroleum, hydropower and timber. No need to import large quantities , good local availability of key resources. With its ideal agricultural climate, Brazil boasts a healthy export trade in coffee, sugar, soya beans, textiles and electrical equipment.
  • 48. TOURISM Brazil is a land filled with joyous people, beautiful landscapes, the Amazon Rain forest, untouched tropical beaches some of the most beautiful in the world historical cities with incredible night life and some of the worlds most breathtaking waterfalls. The growing tourist and eco-tourism industries cater to all tastes. In more recent years it has begun to attract foreigners from around the world. In 2012, 5.7 million international tourists visited Brazil. Tourism is expected to soar further as the country will host the 2016 Olympics.
  • 49. Future Challenges 1.Productivity growth 2.Tax burden ("Brazil Cost) 3.Integration into global markets 4.Focus on key commodities 5.Expand infrastructure