Brazil cost
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 vast territory.[18]
See also
References
- 1 2 "From crisis to crisis in Brazil". The Economist. 24 July 2007. Retrieved 29 October 2011.
- 1 2 Parra-Bernal, Guillermo; Winter, Brian; Marfinati, Bruno (13 October 2011). "Epic bank heist exposes Brazil's security flaws". Reuters. Retrieved 29 October 2011.
- ↑ http://economico.sapo.pt/noticias/custo-portugal_10362.html
- ↑ http://www.advivo.com.br/materia-artigo/entenda-o-custo-brasil
- ↑ http://revistaideias.com.br/ideias/content/o-preco-da-corrupcao-no-brasil-0
- 1 2 3 4 5 6 "Why everything costs so much in Brazil". Super Interessante. 29 April 2013. Retrieved 2 May 2013.
- ↑ "Archived copy". Archived from the original on 2009-12-28. Retrieved 2013-10-11.
- ↑ http://www.administradores.com.br/informe-se/informativo/mao-de-obra-desqualificada-e-um-dos-maiores-problemas-dos-empresarios/16371/
- 1 2 3 "Moving belongings overseas: Shipping blues". The Economist. 30 June 2010. Retrieved 29 October 2011.
- ↑ "Archived copy". Archived from the original on 2013-12-24. Retrieved 2013-12-23.
- ↑ "A survey of Brazil: An unfinished revolution". The Economist. 25 March 1999. Retrieved 29 October 2011.
- ↑ "UPDATE 1-Brazil throws $25 bln lifeline to sagging industry". Reuters. 2 August 2011. Retrieved 29 October 2011.
- ↑ http://www.fiesp.com.br/wp-content/uploads/2012/05/encargos-trabalhistas-e-impactos-no-brasil-e-no-mundo.pdf[]
- ↑ "Untangling the custo Brasil". The Economist. 20 August 2012.
- ↑ http://thebrazilbusiness.com/article/brazilian-tax-reform
- ↑ "Converging economies: One-track bind". The Economist. 24 September 2011. Retrieved 29 October 2011.
- ↑ "Land of promise". The Economist. 12 April 2007. Retrieved 29 October 2011.
- ↑ "Brazil's industrial policy: Bungle in the jungle". The Economist. 17 February 2000. Retrieved 29 October 2011.
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