Business clusters are the results of business-government collaboration. The

Business in BrazilAs one of the BRIC countries, Brazil has an emerging economic market, which helps develop the country through its contribution to the world’s trade with its agricultural products as well as its natural resources. Brazil has a vast diversity of activities, and it varies according to the natural resources, geographic location, local needs, and tax incentives. Brazil is broken in clusters. In general, clusters are the results of business-government collaboration. The local governments offer tax exemptions, infrastructure and local support. Clusters help develop the cities and surrounding areas, attract qualifies workforce, and create and encourages a pro-competitive behavior. Brazil is the fifth largest country in the world, which shares borders with a majority of the South American countries except Ecuador and Chile. Brazil borders the Atlantic Ocean, which provides the country with a tremendous benefit. Despite the country’s size, location, and physical attractions, Brazil has contributed to its growing economy with its global trading and foreign direct investment (FDI). This helps the country raise its standards of living, which reducing poverty.Brazil has used his resources to create comparative advantages. This is a theory that states that the ability of a country to have absolute advantage in the productions of two or more goods is to produce the one that is more efficient. Brail has a comparative advantage when it comes to land. This country has a beautiful, diverse topography, which includes mountains, hills, plains, creeks, and scrubs. Due to Brazil’s location along the Atlantic Ocean, it has continuous water supply and can act as hinterland for trade activities. Furthermore, Brazil’s location gives it an advantage. It also has different time zones, which is rapidly emerging as a global offshore service destination. It is said that Brazil’s biggest advantage over other nations is its natural resources. This nation exports around $90 million of pine every year and still have 600 varies of palm tress. Other strengths include iron ore, Bauxite, and seafood. Brazil’s soil is so rich; it basically can grow any crop. Brazil has advantages in exporting coffee, soya beans, rice, and tomatoes-just to list a few. To further this comparative advantage, Brazil has a huge population. This means that it can provide cheap labor to develop economies. The labor is cheaper than most of the European and North American countries.Although Brazil has some comparative advantages, there are some absolute advantages. Brazil is major producer and exporter of agricultural produce such as sugar, soybean, orange, and so forth. Due to the abundance of land, suitable climate, and cheap labor, with abundance of water and fertile soil, these all contribute to the production of resources the country produces. According to (xxx), Brazil is in 2nd place for the production and exportation of soybeans. However, Brazil has absolute advantage in the world in sugar production and export. Brazil is also ranked 1st in the production and export of orange juice, Brazil ranks 2nd largest producer of beef in the world, but ranks 1st in the export of beef. Also, Brazil ranks 1st in the world’s coffee production and export. With this production, Brazil maintains a good trade relationship with the United States, China, Germany, and Argentina. Today, Brazil’s government and industries are working together to establish competitive advantage for Brazil. The government gets help from international agencies such as the International Monetary Funds (IMF) and the World Bank to fuel the growth by investing big time on infrastructure and education. To understand the competitive advantage of a nation, Porter’s Diamond is used and can explain how the government can help to improve a country’s position in global competition. A component of the model is firm strategy, structure, and rivalry-the world is dominated by dynamic conditions, and direct competition is what pushes firms to work to increase its productivity and innovation. Due to Brazil’s liberalization in the 90s, it joined the Free Trade Agreement (FTA)-member countries agreed to reduce the barriers of trade, typically in the forms of tariffs and quotas-which helps the nation increase its competitiveness of local firms. This helped the nation become more informed and structures. This leads to a highly diversified and sophisticated service industry aiming to grow competitively. Today, Brazil has the second most advanced industrial sector in the subcontinent of the Americas. The next component of the model is demand conditions-the more demanding the customers in an economy, the more pressure the firm faces to improve their competitiveness, innovation, and quality. Growing consumerism and education makes the people of Brazil more informed and demanding. Therefore, industries are under high pressure for innovation and high quality products. To make things better, Brazil’s FTA with other countries created a larger market. The next component is related supporting industries. Majority of the industries in Brazil are automobiles, steel, and petrochemicals. These industries are related to abundant supply of natural resources. Furthermore, higher educational system supplies these industries with talented employees. The last component of Porter’s Diamond is factor conditions. It Brazil remains the largest recipient of FDI in Latin America and being the eighth largest recipient in the world. This nation currently is the fourth largest investor in emerging markets and the largest investor in Latin America (cite). Due to the country’s domestic market of nearly 210 million inhabitants, easy access to raw materials, diversified economy that is less vulnerable to international crises, and a strategic geographic position, brazil is attractive for foreign investors for several reasons. However, investing is still risky due to the corruption-the large embezzlement scandal revealed by Lava Jato investigation. Furthermore, there are heavy and complex taxation, bureaucratic delays, and rigid labor legislations. Despite this, the main investors There are pros and cons in investing in Brazil. This nation has extensive raw materials, a large pool of workers at various educational levels, a large domestic market, and a diversified economy. Due to the export sectors, Brazil’s product can there are a few restrictions when it comes to investments. Include more here Overall, the Brazilian government encourages and promotes FDI through tax exemptions. Companies who export at least 80% f their production in IT and communications are exempt from certain taxes on their exports. This has been extended to all exporting companies, but for three years only. Tax reduction is also granted to companies who set up in economically disadvantaged regions such as the North,….. Due to this, the government has abolished state monopolies. The National Investment Bank (BNDES) also encourages foreign direct investment. In 2013, BNDES disbursement rose 22% to reach BRL 190 Million (1BRL=0.30 USD). This made it one of the largest development banks in the world. Throughout the years, a lot of things have changed for Brazil. Most of the barriers to foreign investor activity have been removed-specifically in the stock market. Furthermore, a lot of the public companies have privatized It Avoidance. The power distance refers to the inequality believe that you always show respect to you elders and care for your family. The dimension of individualism versus collectivism refers to the strength of the ties that people have to others within their community. This nation has a score of 38, which means these individuals values more collective behaviors. It one’s wellbeing. PUT IN PARAGRAPH OF DOING BUSINESS IN BRAZIL!!!! Masculinity versus femininity refers to the distribution of roles between women and men. With a score of 49, it can a great value on cooperative efforts and services. When doing business, Brazilian leaders possess a strong concern for social harmony and human relationships. The last dimension is uncertainty avoidance, which describes how well people can cope with anxiety. Brazil has a high score of 76, which means that within this society, there is a strong need for rules and elaborate legal systems to have a structured life. Brazilians and precise rules. Therefore, if the situation is unknown, they are risk averse and will follow their policy. Although Brazilians have standards, Brazilians enjoys life, therefore leisure time Brazil has been characterized for its diverse culture, geography, as well as its history. Therefore, in order to do business in Brazil, you need to understand the cultural aspects of doing business within this nation. Brazilians have a famous saying, “to our friends, everything; to others, the law.” Therefore, a key element of their culture is personal relationships. Through cultivation and building trust, one can increase their odds of doing business in Brazil greatly.