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Establishing Business Unit in Brazil


            
             The need to increase International Widgets, Inc. (herein referred to as IWI) overall world market share, is the determining factor for this study of the Brazilian political environment. IWI is considering possibilities of a production facility located in Brazil. Historically, the lack of Brazilian political stability presents multiple challenges for IWI to consider conducting business; and becoming competitive, with this facility, in the global marketplace. The Political Environment Group is made up of various disciplines from within the company's enterprises, and its external consultants. .
             This study attempts to address Brazil's political history, stability, economic environment, and other facets of the Brazilian people and their relationship with the government. Then conclude to the Board of Directors whether an investment in Brazil would be conducive to a successful endeavor. The Political Environment Group is tasked with answering the following direct questions about the history of political stability, and its projected continuance over a 10-year period of time. Second, address the Brazilian peoples' attitude toward its government, how strongly its people support national institutions and leaders, and understand the people's perception of how the government is or should provide both political and economic environments. .
             As a member of The Political Environment Group, I am submitting the following recommendations based on the research completed for this study. .
             1. Does Brazil have a history of political stability? Is this stability likely to continue for at least 10-years into the future?.
             No. The following short historical synopsis clearly demonstrates Brazil possesses a history of political change and instability. "The evolution of government has ranged from "The Old Republic,"" where landed patrons had privilege and granted favor to the peasants who worked their land, also known as clientelism.


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