The Pros And Cons Of Corruption In Brazil

785 Words4 Pages
There are many country risks in Brazil, such as the waves of nationalization and privatization that Brazil went through in the 1990s. The country’s past, dictates that, this is a plausible threat to firms’ sustainability today. The threat, however, has decreased ever since in Latin America. Today, for example, instead of nationalizing the country’s copper production, more than 80% of Brazil’s copper is procured by private companies, and the Brazilian government gains a royalty on it. Furthermore, these royalties and other Government earnings are invested transparently and responsibly into infrastructure, education, technology and regulatory reforms, playing a valuable role in strengthening Brazil’s political stability (Robles, Wiese and Baumgarten, 2015) An innovative and growing region with large consumer and business markets like Brazil attracts a wide range of goods and services; The volume of business outweighs the risks. The risks, however, can be further mitigated through local partnerships. For BTG, doing business in Brazil by collaborative engagement with local partners might ensure long-term growth and development. 2. Corruption Corruption is a country risk that deters potential foreign investors and hinders the development of already-present, locally-operating companies. This section analyzes managerial and government responses towards these risks (Robles, Wiese and Baumgarten, 2015). Corruption in Brazil, is the result of the country’s accepted culture of poorly

More about The Pros And Cons Of Corruption In Brazil

Open Document