Domestic Tourism

When it comes to business-related profits, expansions, and growth, tourism and travel play an important role, as the number of people attending large events could influence the bottom line of a company. U.S.-based businesses that are looking to conduct mergers or acquisitions in Brazil would be wise to consider the tourism of the country as well as work with a Brazilian law firm to ensure all procedures are performed legally.

The Rio Times reported that the country’s largest carnival is expected to see fewer international tourists this year. The economic instability in Europe and the United States have traveling numbers in decline. However, domestic tourism is expected to make up the shrinking rate from international downfalls, as there has been a rise in Brazilians traveling to this carnival in recent years. The spending levels during this major event are likely to stimulate the local industries and leave larger profits at many businesses.

“In past Carnivals there was an average of between 65 and 70 percent of foreign tourists recorded in hotels, and the rest were Brazilians,” Alfredo Lopes, the President of Brazilian Association of Rio’s Hotel Industry, told the news source. “For Carnival 2013 the forecast is that this number will be equal – fifty percent foreigners and the other half Brazilian.”

In Brazil, tourism has risen as more people moved from poverty toward the middle class once the economy improved. Some other reasons behind the decline in international travelers includes the pricey hotels and high costs of living in Rio and São Paulo, the biggest cities in Brazil.

U.S.-based businesses that are interested in expanding to Brazil may see the rising domestic tourism as beneficial. When developing mergers or acquisitions, it is important to work with a Brazilian lawyer who can represent foreign clients effectively.

Dollar Weakens in Brazil

International businesses that are attempting to negotiate deals in Brazil would be wise to pay attention to the finances and economy of this country before making any long-term investments. This includes understanding the national tax laws as well as any other legal implications of trade within the nation. Working with a Brazilian law firm could prove beneficial for U.S.-based businesses that are considering expanding to this nation.

Forbes reported that the dollar is losing value in this country because the Central Bank prohibited its circulation out of currency markets for a number of months. The Central Bank finds a weakened dollar tolerable in order to strengthen the national economy and cut inflation, which is around 6 percent.

“Given our estimates of exchange rate pass through, the Central would have to guide the real about 10 percent stronger to make any meaningful dent in inflation,” Tony Volpon, a managing director at Nomura in New York, told the source. “We see the bank’s guidance of a stronger real as being limited in nature and serving more as a signal of its worry over the inflation outlook and an attempt to manage inflation expectations.”

However, the weakening dollar in Brazil has caused other problems, such as the country’s lack of competitiveness in the global markets, whether it comes to the shoe trade or other items. Currently, the stock market in this nation is declining while the unemployment rate is shrinking. At the end of 2012, this rate was only at 5.5 percent, which is the lowest its been since 2002. While the economy may have dropped, the currency is currently strengthening.

U.S.-based businesses will have to consider all of these factors when initiating deals, mergers, acquisitions or other transactions with companies located in this country. With the help of a Brazilian lawyer, international firms will be able to follow the business laws in Brazil.

Nightclub Fire

At the end of January, a nightclub fire in Santa Maria, Brazil was set off, killing 235 people, according to USA Today. The police force in this city arrested three people that were allegedly responsible for the inferno and are currently looking for a fourth person connected to the crime.

Inspector Ranolfo Vieira Junior explained that the arrests made were purely due to the overall investigation and have a limit of five days. The allegations at large are due to a pyrotechnics show that ignited the fire and led to one band member’s death. Two band members and a co-owner of the club were arrested.

The people at the nightclub attempted to flee but some were held up at the door by security guards who were making sure that bar tabs were paid. This further delayed escape and caused more than two hundred deaths.

“It was terrible inside – it was like one of those films of the Holocaust, bodies piled atop one another,” police inspector Sandro Meinerz told the source. “We had to use trucks to remove them. It took about six hours to take the bodies away.”

This disaster may have brought grief to families, but government officials are taking attempts to prevent such scenarios from happening in the future. The Rio Times reported that an investigation is taking place dealing with whether appropriate fire prevention regulations including health and safety laws are adequate and whether local authorities are following these laws in Brazil. Marco Maia, President of Brazil’s Chamber of Deputies, said that he will be reviewing safety regulations for nightclubs and may develop new federal legislation if necessary.

U.S.-based businesses attempting to trade overseas and develop transactions with Brazilian companies will need to comply with any new legislation, especially those centered around health and safety. By working with a Brazilian lawyer, such organizations will be supported effectively in order to grow their business.

Importance of International Trips

Businesses based in the United States may consider expanding or undergoing transactions internationally in order to sustain a growing company or gain a net profit. Conducting mergers or acquisitions in Brazil could be one option but a Brazilian law firm will need to be consulted in order to ensure that all global business laws are followed.

For instance, there are certain restrictions on imports and exports to and from Brazil, according to the Rio Times. Businesses will need to know the proper trade regulations within the country in order to conduct transactions effectively. Brazilian President Dilma Rousseff recently traveled to various nations to meet with their leaders and possibly decrease trade restrictions.

In December, Rousseff traveled to Russia to to discuss the ban on imports of meat and also made a stop in the United Kingdom for the Olympics. Her trips to Spain brought her to negotiate a number of business deals.

“The visits cement Brazil’s position as chief bridge nation between Latin America and Europe and, as if to underline this, the president’s first trip of 2013 will be to the Chilean capital, Santiago, for a joint summit of the Latin American and Caribbean States Community (CELAC) and the European Union, aiming to facilitate trade between the two regions,” the news source reported.

The president will also be present and give the opening speech at the UN General Assembly in the United States. In February, Rousseff is expected to travel to Africa to take part in the Africa-South America Summit. With such positive international dealings, the Brazilian government has shown businesses that expansion within this nation is encouraged.

However, entrepreneurs and business executives should confer with a Brazilian lawyer before taking part in any transactions to ensure they are following all business laws in Brazil.

Ethanol output in Brazil rose while weather dampers crop

Many different industries participate in business dealings within Brazil, including food manufacturers, car makers, technology firms and oil tycoons. All of these different sectors, however, must follow the business laws in Brazil in order to stay cost-effective and successful. For instance, tax laws can cause some businesses to undergo financial constraints while any monetary penalties for not complying with certain laws in Brazil could cause additional problems.

With the help of a Brazilian law firm, companies may remain more attune with the legislation of this country and have a greater chance of being successful. Bloomberg explained in a January 16 article that the oil and gas industry in Brazil is gaining strength. Ethanol output, in particular, rose 14 percent in the last year while the government has increased the mandatory amount of biofuel to be made into gasoline.

Because of the sugar-crane crop, ethanol output produced by mills is likely to grow, said​ mill Grupo Maubisa’s founder and chief executive officer, Maurilio Biagi Filho.

“We’ll produce more ethanol because of the increase in the blend,” Biagi told the source in an interview. “The mixture is returning to the level of two years ago … There’s a lot of sugar supply so the tendency will be that prices fall.”

South African corn will also make headway while Brazil undergoes a dry weather spell that has affected the growth of the nation’s crops. Exchange for white corn, in particular, grew 2.2 percent for the African country. Brazil, however, is having warmer temperatures and dry conditions that are causing a depletion of moisture within the soils.

Whether a company is geared at food producing or oil and gas drilling, a Brazilian law firm specializing in business law could help foreign parties develop the appropriate contracts to make transactions within this country.