Description of the country:

Brazil officially the Federative Republic of Brazil is the fifth largest country
by both area and population. Brazil is the largest country to have Portuguese as
an official language, and the only one in the Americas. Brazil is South America's
most influential country, an economic giant and one of the world's biggest
democracies. It is one of the rising economic powers - otherwise known as BRIC
nations - together with Russia, India, China and South Africa.
Brazil is the largest country in South America and the Latin America. It is the
largest Portuguese-speaking country in the world. Brazilian economy is the
world's seventh largest by nominal Gross Domestic Product. It is one of the
world's fastest growing major economies and its economic reforms gives the
country new international recognition and influence. Brazilian law is based on
Roman-Germanic traditions and civil laws. The Brazilian Federation is the
"indissoluble union" of the States, the Municipalities and the Federal District and
these are called as spheres of Brazilian government.
At present, voting is compulsory for all Brazilian residents that are literate
and between the ages of 18 and 69 years.
The government of Brazil is divided into :
1) executive branch,
2) legislative branch and
3) judicial branch.
There are 27 states and more than 5 500 individual municipalities, each of
which is run by a mayor. Each municipality is headed by an elected mayor and a
legislative body that handles the legal aspects of running the municipal area. The
elections take place across Brazil at the same time.
Executive Branch
Jair Messias Bolsonaro
38th president of Brazil.

The president is elected via ballot votes and he or she will hold executive
power. The president’s term is four (4) years.The president leads the executive
branch and is the commander-in-chief of the Brazilian armed forces. The vice
president would replace the president and assumes the role of presidency while
the president is abroad. The cabinet administers assist the president in the
exercise of the executive power by administrating a corresponding government
ministry.The president and vice president are elected by the citizens of Brazil by
absolute majority vote through a two-round system.
Legislative Branch
The federal senate is the upper house of bicameral congress. The chamber
of deputies is the lower house.The federal senate has 81 members who are
elected by plurality vote in multi-member constituencies. The chamber of
deputies has 513 members who are elected through an open-list proportional
representation system.
Federal Senate: 8 years; Chamber of Deputies: 4 years.
Each state in Brazil is assigned a governor and an elected legislature.
Judicial Branch
The Supreme Federal Tribunal exercises the ultimate judicial power.
The judiciary is separate from other government entities.Justices are appointed
by the president and approved by the federal senate.
Mandatory retirement age of 70
Each of its judges is elected by the tribunal members and their term is life-long.
The judicial system is responsible for contesting and supporting any decisions
made by the government that will affect the rights of Brazil’s individual
residents.This gives the judicial system a huge amount of power within the legal
system of Brazil.
The political factors affecting business
The political factors affecting business are often given a lot of importance.
Several aspects of government policy can affect business. All firms must follow
the law. Managers must find how upcoming legislations can affect their activities.
The political environment can impact business organizations in many ways.
It could add a risk factor and lead to a major loss. You should understand that the
political factors have the power to change results. It can also affect government
policies at local to federal level. Companies should be ready to deal with the local
and international outcomes of politics.
Changes in the government policy make up the political factors. The change can
be economic, legal or social. It could also be a mix of these factors.
The political environment is perhaps among the least predictable elements
in the business environment. A cyclical political environment develops, as
democratic governments have to pursue re-election every few years. This
external element of business includes the effects of pressure groups. Pressure
groups tend to change government policies.
list of political factors affecting business:
Government stability and related changes
Lack of political stability in a country effects business operations. This is
especially true for the companies which operate internationally.The stability of a
political system can affect the appeal of a particular local market.Governments
view business organizations as a critical vehicle for social reform.Governments
pass legislation, which impacts the relationship between the firm and its
customers, suppliers, and other companies.The government is liable for
protecting the public interest.Government actions influence the economic
environment.Government is a major consumer of goods and services.
Brazil is still considered a developing nation, and although that is often
interpreted as a precursor for ‘high growth levels’, it also means that several
areas of the economy remain underdeveloped. The consumer base, regulatory
environment and sphere of investment are not as mature as those of developed
nations, and considerations must be made to that effect.

Bureaucracy
The reform of the laws and regulations for opening and running a business
in Brazil has not adapted at the rate with which the economy has grown,
presenting many hurdles to overseas corporations.
Brazil ranked 125th out of 190 countries in the World Bank’s latest annual
global report which evaluates the ease of starting a business, dealing with
construction permits, registering property, and paying taxes. On average, it takes
11 procedures and around 90 days of work* to start a business in Brazil - though
this used to be almost 120 days - and construction permits demand an average 20
procedures and 404 days to finally get authorised.

Corruption level
Corruption is a barrier to economic development for many countries. Some
firms survive and grow by offering bribes to government officials. The success and
growth of these companies are not based on the value they offer to consumers.
While Brazil is among the world’s leading investment destinations and is formally
a well-functioning business environment, corruption and bribery are still serious
obstacles. The federal structure of the political system means there is a wide
range of regulatory agencies, which can lead to demands for bribes from public
officials. In 2016, Brazil was ranked 76 in Transparency International’s corruption
perception index, and organised crime is a significant problem in some parts of
the country. However, this is something the government is fighting hard through
a so-called integrity programme.

Regulation and deregulation

Governments could alter their rules and regulations. This could in turn have
an effect on a business.Brazil ranked 125th out of 190 countries in the World
Bank’s latest annual global report which evaluates the ease of starting a business,
dealing with construction permits, registering property, and paying taxes. On
average, it takes 11 procedures and around 90 days of work* to start a business in
Brazil - though this used to be almost 120 days - and construction permits
demand an average 20 procedures and 404 days to finally get authorised.

Tax policy (tax rates and incentives)

Increase or decrease in tax could be an example of a political element. Your
government might increase taxes for some companies and lower it for others. The
decision will have a direct effect on your businesses. So, you must always stay up-
to-date with such political factors.Government interventions like shifts in interest
rate can have an effect on the demand patterns of company.
Brazil’s tax regime is one of the driving forces behind its complexity. More
than 90 taxes, duties and contributions are charged in Brazil, and all taxes are
based on different government spheres of federal taxes, state taxes and
municipal taxes. The launch and roll-out of eSocial has created a single system
that replaces the need for companies to send separate reporting to Social
Security, the Internal Revenue service and Brazil’s Ministry of Labour and
Employment, but the new system has led to increased short-term complexity in
reporting.

Trade control
 Brazil is the 21st largest export economy in the world; in 2016, the country
exported $182bn and imported $135bn worth of goods, resulting in a positive
trade balance of $46.4bn. Imports, however, are decreasing at an annualised rate
of -19.552%. Businesses can often be confronted with complications when
exporting and importing goods. Most imported goods are held in port for some
time while the correct procedures take place and the average cost per container
is relatively steep. Compliance when exporting can take 71 hours at a cost of
1185. High duties may make an export too expensive for the Brazilian market.
Infrastructure
Being on the world stage for the football World Cup and the Olympic
Games pushed the Brazilian government to urgently improve the country’s
infrastructure, auctioning road, railway and airport concessions as well as cutting
financial transaction tax on several major projects. According to the World
Economic Forum, Brazil ranks 107th out of 144 countries in the level of
infrastructure development. That said, the build was fraught with controversy,
and the long-term impact is yet to be truly assessed.

Mitigation of Risk
Buying political risk insurance is a way to manage political risk. Companies
that have international operations use such insurance to reduce their risk
exposure.There are some indices that give an idea of the risk exposure in certain
countries. The index of economic freedom is a good example. It ranks countries
based on how politics impacts business decisions there.

verious laws in favour of bussiness

Government involvement in trade unions and agreements.Freedom of the
press,tariffs,education law,anti-trust law, employment law,discrimination
law,data protection law,environmental law,health and safety law,competition
regulation and consumer protection and e-commerce.