American Brands Dominating the Brazilian Market

 People are still optimistic about Brazil, even though there are ongoing corruption problems and economic uncertainty, and even though it is one of the hardest places in the world to do business. Brazil is still the best place for US companies to invest in Latin America. For more than one hundred years, the two biggest economies in the Americas have worked together in business. In fact, the American Chamber of Commerce in Rio de Janeiro is the oldest in Latin America, and trade goes both ways and is very large and varied. The US is still one of the main places where direct investment comes from in Brazil. In 2014, the most recent year for which data is available, the Brazilian Central Bank said the US had the biggest single-country stock of FDI in Brazil, worth US$112 billion. Brazil is a "must play" market for US companies because it has more than 200 million people, which is almost 3% of the world's consumers. In 2016, the US sent 16% of all goods brought into Brazil, making it the second-largest exporter of goods after China. Germany, Argentina, and South Korea came in at the top of the list. Also, the US sells a lot of services in Brazil; in 2016, US goods sent there were worth almost $25 billion.

Brazil is a good place for US companies to start doing business in South America because it borders 10 other countries

Just keep in mind that people there speak Portuguese, not Spanish. Businesses in the area are happy for US companies to come in and work with them. One way for a US company to get into the Brazilian market is to partner with a local business. The local business can help the US company understand the complicated rules and laws, and the government is said to like this kind of arrangement. But if you want to do business in Brazil, you need to know a lot about the country's distribution system, government procedures, employee benefits, environmental laws, and complicated tax system. You also need to know about the "custo Brasil," which are the direct and indirect costs of doing business. The US Olympic Committee says that for the Olympics in Rio, they set up a store for Team USA. To begin, it had to set up a business, which according to local rules required a Brazilian president. To do this, they chose a lawyer from a firm in Rio. Adecco, the store's sponsor, helped them hire people by making sure there was a strict mix of locals to foreigners. It was also necessary to deal with a sales system that had to send real-time tax returns to the government, as well as store records and customer receipts. They said the last problem was getting the goods into Brazil because packages often get held up in customs for months. It cost more for buyers to buy things than it would cost in the US after all the problems were fixed.

In addition to having to deal with high tariffs

US businesses have to deal with a complicated legal system and customs processes. This is because the Brazilian government buys the most goods and services from the US. Don't forget that Brazil is not a member of the WTO Government Procurement Agreement. When Brazilian companies bid on government contracts, they often get "margins of preference." If US companies don't have a strong foothold in a country, either through partnerships or a subsidiary, they may lose out on business opportunities. Also, keep in mind that Brazil does have a reputation for being crooked. "Operation Carwash" has found a complicated web of corruption in the public sector, fraud on contracts, money laundering, and tax cheating that come from routinely charging too much for government work. But the fact that the investigation is going on shows that Brazil wants to fix its image and take steps to improve its place in the world. Brazil has great chances for investment and economic growth. It has the ninth largest economy in the world and the fourth largest country in the world, with 207,1 million people living there. The country also has a lot of land and nice weather. The following are the five best areas to invest in Brazil:

Farming business

The United States makes more food than any other country in the world. About 60% of the country's land is used for farming, and 77% of the food produced is shipped. In 2017, the government gave USD$175,5 billions in tax breaks to farmers. It's a great way to spend your money.

Automobile

The economic downturn affected the car industry, but there is a plan for it to grow in 2017 and 2018. This industry makes up 22% of Brazil's GDP and is the second most important to the country's economy. In terms of foreign sales, Brazil is the seventh largest market for cars. In 2017, the Brazilian government also announced a new project called Route 2030. This project will protect investors and make Brazil more competitive on a global scale.

Solutions for the environment and renewable energy

Brazil has a great chance to grow its renewable energy because it has a lot of land and is the seventh country with the most natural resources. Hydropower, biofuel, wind, and solar energy are some of the main types of energy that Brazil gets. Natural gas, industrial gas, oil, and coal are some of the other types of energy that Brazil gets. Because they sell energy plans to private companies, the government has been making programs since 2003 that help businesses.

Gas and oil

Brazil could become the third-largest oil and gas provider, just behind the US and Russia, if OPEC holds out hope. The Brazilian government hopes that programs like "Gas para Crescer" and "REATE" will bring in foreign investment and make the market more competitive.

Life Sciences and Health

Brazil saw the health business as a must since it has the fifth most people in the world. As of 2015, healthcare costs made up almost 10% of the country's GDP. This is 50% more than in 2006. The country hopes to have the fifth-largest market until 2021, beating out the UK and France. This will make the sector open to foreign investment.