Brazil cost

From Wikipedia, the free encyclopedia
Jump to: navigation, search

Brazil Cost (Portuguese: Custo Brasil [ˈkustu bɾɐˈziw]) refers to the increased operational costs associated with doing business in Brazil,[1] making Brazilian goods and services more expensive compared to other countries.[2] There are several factors that contribute to the extra cost, including:

  • High levels of public deficits;[3]
  • The economy divided into cartels;[4]
  • Inefficiency of public services;[5]
  • Maintenance of high real interest rates;[6]
  • Exaggerated net interest spread of financial institutions (among the highest in the world);[7]
  • Excessive bureaucracy for importing and exporting, creating difficulties for foreign trade;[6]
  • Low education levels and lack of qualified labour;[8]
  • Excessive layers of bureaucracy (red tape), e.g., to start a company in Brazil takes at least 120 days;[9][10]
  • High levels of corruption within the public sector;[9]
  • High tax burden;[11]
  • Expensive labour costs;[12]
  • High social security costs;[13]
  • Complex and inefficient fiscal legislation;[6]
  • Economic instability;[9]
  • High electricity cost;[14][6]
  • Legal uncertainty;[15]
  • High interest rates;[16][6]
  • High crime rate, which adds extra security costs;[2]
  • Underdeveloped infrastructure, including a deteriorated network for domestic shipping by rail, highway and coastal navigation*.[1][6]

*: In 2007 transport costs consumed 13% of GDP, 5% more than in the United States.[17] The high transport costs are exacerbated by the scattering of industry over Brazil's territory.[18]

See also[edit]

References[edit]

  1. ^ a b "From crisis to crisis in Brazil". The Economist. 24 July 2007. Retrieved 29 October 2011. 
  2. ^ a b Parra-Bernal, Guillermo; Winter, Brian; Marfinati, Bruno (13 October 2011). "Epic bank heist exposes Brazil's security flaws". Reuters. Retrieved 29 October 2011. 
  3. ^ http://economico.sapo.pt/noticias/custo-portugal_10362.html
  4. ^ http://www.advivo.com.br/materia-artigo/entenda-o-custo-brasil
  5. ^ http://revistaideias.com.br/ideias/content/o-preco-da-corrupcao-no-brasil-0
  6. ^ a b c d e f "Why everything costs so much in Brazil". Super Interessante. 29 April 2013. Retrieved 2 May 2013. 
  7. ^ http://www.estadao.com.br/noticias/economia,spread-bancario-custa-r-261-bi-aos-brasileiros-em-12-meses,487268,0.htm
  8. ^ http://www.administradores.com.br/informe-se/informativo/mao-de-obra-desqualificada-e-um-dos-maiores-problemas-dos-empresarios/16371/
  9. ^ a b c "Moving belongings overseas: Shipping blues". The Economist. 30 June 2010. Retrieved 29 October 2011. 
  10. ^ http://www.colunasdehercules.com.br/2012/02/abrir-empresa-no-brasil-demora-120-dias.html
  11. ^ "A survey of Brazil: An unfinished revolution". The Economist. 25 March 1999. Retrieved 29 October 2011. 
  12. ^ "UPDATE 1-Brazil throws $25 bln lifeline to sagging industry". Reuters. 2 August 2011. Retrieved 29 October 2011. 
  13. ^ http://www.fiesp.com.br/wp-content/uploads/2012/05/encargos-trabalhistas-e-impactos-no-brasil-e-no-mundo.pdf
  14. ^ "Untangling the custo Brasil". The Economist. 20 August 2012. 
  15. ^ http://thebrazilbusiness.com/article/brazilian-tax-reform
  16. ^ "Converging economies: One-track bind". The Economist. 24 September 2011. Retrieved 29 October 2011. 
  17. ^ "Land of promise". The Economist. 12 April 2007. Retrieved 29 October 2011. 
  18. ^ "Brazil’s industrial policy: Bungle in the jungle". The Economist. 17 February 2000. Retrieved 29 October 2011.