Brazil cost

Brazil cost

Brazil cost (Portuguese: Custo brasil) refers to the increased operational costs associated with doing business with Brazil,[1] making Brazilian goods more expensive compared to other countries.[2] There are several factors that contribute to the extra cost, including:

  • the underdevelopment of infrastructure, including a deteriorated network for domestic shipping.[1] In 2007 transport costs consumed 13% of GDP, 5% more than in the United States.[3] The high transport costs are exacerbated by the scattering of industry over Brazil's territory.[4]
  • excessive layers of bureaucracy;[5]
  • corruption;[5]
  • high tax burden;[6]
  • expensive labour costs;[7]
  • economic instability;[5]
  • high interest rates;[8]
  • high crime rate, which adds extra security costs.[2]

See also

References

  1. ^ a b "From crisis to crisis in Brazil". The Economist. 24 July 2007. http://www.economist.com/node/9537065. Retrieved 29 October 2011. 
  2. ^ a b Parra-Bernal, Guillermo; Winter, Brian; Marfinati, Bruno (13 October 2011). "Epic bank heist exposes Brazil's security flaws". Reuters. http://www.reuters.com/article/2011/10/13/us-brazil-security-idUSTRE79C0OD20111013. Retrieved 29 October 2011. 
  3. ^ "Land of promise". The Economist. 12 April 2007. http://www.economist.com/node/8952466. Retrieved 29 October 2011. 
  4. ^ "Brazil’s industrial policy: Bungle in the jungle". The Economist. 17 February 2000. http://www.economist.com/node/284117. Retrieved 29 October 2011. 
  5. ^ a b c "Moving belongings overseas: Shipping blues". The Economist. 30 June 2010. http://dr.economist.com/blogs/gulliver/2010/06/moving_belongings_overseas. Retrieved 29 October 2011. 
  6. ^ "A survey of Brazil: An unfinished revolution". The Economist. 25 March 1999. http://www.economist.com/node/320213. Retrieved 29 October 2011. 
  7. ^ "UPDATE 1-Brazil throws $25 bln lifeline to sagging industry". Reuters. 2 August 2011. http://www.reuters.com/article/2011/08/02/brazil-industry-idUSN1E7710X620110802. Retrieved 29 October 2011. 
  8. ^ "Converging economies: One-track bind". The Economist. 24 September 2011. http://www.economist.com/node/21528985. Retrieved 29 October 2011. 


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