Although Brazil has been poised for quite some time now to become a major player in the world economy, it has not fully achieved its potential just yet.
In order to help facilitate its transition, and also offer insight into the complex factors at work in Brazil’s economy, Igor Cornelsen recently released a few key tips that any investor should be aware of. As originally reported on cnbc.com, the tips are well worth knowing, even for those that may not necessarily be looking into investing Brazil right now.
In Brazil, community is an important social construct and is something that those from other cultures may not immediately grasp. Igor Cornelsen reminds potential investors to treat their business connections with respect and familiarity, and to not be surprised about the value Brazil places on networking as a whole.
Interestingly enough, Cornelsen is quick to point out that nearly 1 in 4 Brazilians are entrepreneurs, ensuring that there’s a potential networking opportunity in practically every market imaginable.
Despite the rapid growth of Brazil’s markets, Cornelsen still advises people to be aware of the considerable amount of “red tape” in the country. There are a number of restrictions placed on the labor market in Brazil, as well as a variety of other regulations that stem from a sizeable bureaucracy.
Even though it can be difficult for an investor to get their foot in the door,
Cornelsen says that the potential growth far outweighs any potential regulatory setbacks that may come up throughout the process. Learn more about Igor Cornelsen: Adicione uma descrição a este tópico
Finally, one of the most important tips that Cornelsen has for traders is to be aware of foreign currency restrictions. There are only a handful of banks in Brazil that are authorized by the government to handle transactions involving foreign currencies.
In addition, there is no centralized exchange rate. Instead, the exchange rate varies based on the nature of any specific transaction, and Brazil’s Central Bank can also influence this rate at any time. Still, these difficulties can also be turned into advantages if an investor plays their cards right.
Expanding an existing business into Brazil may seem difficult at first, but as Cornelsen says, “there’s no such thing as free money.” If you put the effort in, then you’ll find that Brazil is an excellent opportunity that shouldn’t be passed up.