Aspects for Investiments in Brazil

Positive:
• Brazilian culture: western values;
• Political Stability: democracy has become a real value for the Brazilian society;
• Economic stability: the effects of the Real Plan (enhanced economic activity with freedom of prices) are eliminating the "inflationary memory" and society's tolerance of inflation;
• Availability of an efficient, smooth and modern financial and bank system;
• The dimension of the domestic market: large enough to ensure, alone, economies of scale in most economic activities;
• Expanded market: MERCOSUL;
• Low direct labor cost;
• Low electric power cost;
• Diversification and maturity of the industrial complex;
• Availability of infrastructure for factories;
• > labor (administrative, managerial, and production line levels) experienced in factory activities;
• > networks for the distribution of parts and services;
• direct links with the international market;
• open doors to foreign capitals (with profit remittance duly regulated).

Negative:
• High interest rates;
• Corruption;
• Congress votes not according to country?s interests;
• Burden the circulating capital;
• Tax load and structure;
• Large diversity of taxes;
• High percentages;
• Collection system characterized by complex bureaucracy;
• High labor taxes;
• Inefficiency of infrastructure services;
• Roads and railroads in bad shape;
• High cost and inefficiency of the port network;
• High cost and technological gaps in the telecommunications network;
• Slow judicial proceedings.