Throughout several years of negative political guidance, Brazil remains one of the most vibrant, diverse and attractive countries for investment. Veteran investor and analyst Igor Cornelsen, writing for TheStreet.com, sees the economic conditions in Brazil absolutely perfect for foreign investment.
Despite failed radical economic policies by the majority Populist party, Brazil continues to grow. This country, with over 200 million hard-working people register a $2.6 trillion gross domestic product. The key to this economic vibrancy is the nature of Brazilian products. Simply put, the world needs food, and Brazil produces a lot of it. The abundance of vast natural resources in agriculture, lumber, minerals, and precious metals put Brazil at the top of attractive places for foreign investment.
Three important tips are outlined by Igor Cornelsen concerning investments by foreign entities in the Brazilian economy.
First, it is important to have native business connections. Investment partners with established ties in Brazil are the best human resources for solid communications in the South American marketplace. In short, don’t invest in Brazil alone!
Second, know that there is no such thing as “free money.” The choice to invest in the industry of a country like Brazil will be accompanied by a litany of red tape.
Third, be aware of foreign currency restrictions in Brazil before investing. The economic climate in Brazil is absolutely perfect for non-indigenous company start-ups and expansion. These three precautions are best managed with solid in-country connections aiding any new Brazilian business investment. It is absolutely possible to take advantage of Brazil’s emerging strong market. The trick is to connect, measure, and extend in the proper way.