Essay about Brazil - Pestl Analysis and Swimwear Industry Review

Words: 5566
Pages: 23

| RESEARCH ASSIGNMENT | Brazil: Swimear & Surfwear | | Warwick Brown (87354922) | |

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Contents EXECUTIVE SUMMARY 1 SITUATION ANALYSIS 1 POLITICAL 1 ECONOMIC 2 SOCIAL 3 TECHNOLOGICAL 5 LEGAL 6 ENVIRONMENTAL 7 THE SWIMWEAR INDUSTRY 8 BRAZILIAN BRANDS 9 AUSTRALIAN BRANDS 10 MARKET ENTRY STRATEGIES 12 EXPORT 12 JOINT VENTURE 12 DIRECT INVESTMENT 13 PREFERRED STRATEGY 13 APPENDIX 15 BIBLIOGRAPHY 16

EXECUTIVE SUMMARY
Brazil is the largest economy in South America, with GDP of $US 1,314 billion and a population of 192 million. It is also one in which there is enormous inequality of wealth distribution, which presents challenges for the government, and the economy. Largely
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Recent economic data suggests the country is well on the way to recovery. The benchmark Bovespa index BVSP has rallied more than 55 percent this year. Second-quarter gross domestic product grew by 1.9 percent from the previous quarter and GDP growth of 2 to 3 percent is anticipated in the third quarter (Lopez 2009). From January to August 2009, Brazil accumulated a trade surplus of $19.9 billion, up 18.7 percent year-on-year. Exports reached $13.8 billion, up 7.2 percent from July, and imports totalled $10.7 billion, up 5.1 percent. Despite the improvement, exports this August were 29.9 percent lower than in August 2008, and imports were down 38.3 percent over the same period. (Field 2009).
The positive economic outlook is a result of many factors. Brazil’s currency (Reais) has depreciated by as much as 30% following the collapse of Lehman Bros in September 2008, however the devaluation has helped exports. Brazil's Central Bank, has assisted companies to repay foreign debt and allowed commercial banks to draw down some of the funds they are required to deposit at the Central Bank in normal times. State owned development banks have increased their lending. (The Americas: Pain but no panic; Latin America's economies 2009)
Brazil has relatively low exposure to international trade. Its largest trading partner is the United