Brazil

Brazil’s economy is diverse, encompassing agriculture, industry, and a multitude of services.The recent economic strength has been due in part to a global boom in commodities prices with exports from beef to soybeans soaring.Agriculture and allied sectors like forestry, logging and fishing accounted for 5.1% of the gross domestic product in 2007. A performance that puts agribusiness in a position of distinction in terms of Brazil’s trade balance, in spite of trade barriers and subsidizing policies adopted by the developed countries. The industry; from automobiles, steel and petrochemicals to computers, aircraft, and consumer durables; accounted for 30.8% of the gross domestic product. Industry is highly concentrated geographically, with the leading concentrations in metropolitan Sao Paulo, Rio de Janeiro, Campinas, Porto Alegre, and Belo Horizonte. Technologically advanced industries are also highly concentrated in these locations. Brazil is the world’s tenth largest energy consumer. Its energy comes from renewable sources, particularly hydroelectricity and ethanol; and nonrenewable sources, mainly oil and natural gas. A global power in agriculture and natural resources, Brazil witnessed tremendous economic growth over the past three decades. Brazil is expected to become a major oil producer and exporter, having recently made huge oil discoveries. The governmental agencies responsible for the energy policy are the Ministry of Mines and Energy, the National Council for Energy Policy, the National Agency of Petroleum, Natural Gas and Biofuels, and the National Agency of Electricity.

Demographic Data

Economic Data

Cultural & Other Data

GDP (PPP, $bn)

1,990

Capital

Brasilia

Area (sq. km.)

8,511,965

GDP Real

Growth (%)

5.2

Other Large Cities

Sao Paulo, Rio de Janeiro, Belo Horizonte, Salvador

Population (million)

198

PerCap GDP ($)

10,100

Primary Language

Portuguese

Population

Growth %

1.199

Prime Lending

Rate (%)

43.72

Urban

Population %

86

% Population

Under 15yrs

26.7

Inflation Rate%

5.8

Urban Growth %

1.8

Population below

poverty line (%)

31

Unemployment%

8

Literacy

(% of population)

88.6

Agricultural Workers

(% of population)

20

Foreign Direct

Investment($bn)

280.9

Education spending

as % of GDP

4

Industrial Workers

(% of population)

14

Debt-External

($bn)

236.6

CPI Score

(1-10)*

3.5

Service Workers

(% of population)

66

Exports ($bn)

200

Corporate Income Tax %

34

Labor Force (mil)

100.9

Imports ($bn)

176

Ease of Doing

Business Ranking **

125

CURRENCY EXCHANGE RATE

05/13/09 $1 = 2.05 BRL

Franchising Laws Overview

Disclosure laws:

  • Disclosure must be provided ten days prior to the execution of the franchise agreement (or “preliminary franchise agreement”) or the payment of any fee by the prospective franchisee to the franchisor or any related company or individual.

Relationship laws:

  • None.

Registration laws:

  • Registration of the agreement (translated into Portuguese) with the Brazilian Patent and Trademark Office (“INPI”) and Central Bank is required.
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