Political systems in Brazil can come with undue hardships for business owners, but many have found that the financial pay off of traveling abroad outweigh the negative issues. Brazil is in a collectivism economy, but the United States is an individualism economy. These differences are distinct especially with the idea of how people understand their role in society. In Brazil, people are known to belong in a group and people in the United States are more known to be individuals. The family members in Brazil protect other families in exchange for loyalty, but Americans are often more comfortable with doing work with people they do not know. Brazil’s political party is set up as a Federal Republic with twenty-six states. Although the number of states in Brazil is much smaller than the United States, the President’s in both countries hold office for four years.
The political economy in Brazil is much like that in the United States. They both have a mixed economy, but Brazil has developed more of a market economy. Brazil has a moderately free economy, while the United States has developed a completely free economy. However, with previously learned knowledge, it is known that a “free” market is never complete free due to government regulations. Brazil is the largest economy in South America, but the United States is the second largest economy in North America. From the data found on this topic, it is apparent that Brazil has more control over their economy than the United States due to different ways of being able to influence their economy.
Brazil’s economy includes the Laissez Faire system. This allows for transactions between private parties to be free from government restrictions in the form of tariffs and subsidies. Brazil needs more economic freedom from multiple examples. These issues include: protection of property rights, freedom from corruption, fiscal freedom, and business freedom. The amount of issues in Brazil outnumbers the amount of issues in the United States. The Brazilian government will continue currency market intervention in the future. With that, interventions are halting the rise valuation of the United States dollar and the depreciation of the Brazilian real.
The United States and Brazil joined the WTO in 1995. Along with this came other agreements that the countries joined such as the General Agreement on Tariffs and Trade. The political parties in Brazil are broken into thirty-two registered parties and five governing parties. These 5 governing parties include: Worker’s Party, Brazilian Social Democracy Party, Brazilian Democratic Movement Party, Democrats, and Progressive Party. Voting in Brazil is different than in the United States because Americans can vote in national elections while Brazilians cannot. Also, there is an age limit of 70 years old with voting in Brazil, but Americans are welcome to vote for as long as they are able.
Both countries have a Congress in the Legislative Branch of their government. Brazil has a National Congress that has 513 members in their Chamber of Deputies. The U.S. Congress has 435 members in the House of Representatives. Brazil is a Federal Presidential Representative Democratic Republic. The President in Brazil is also the Head of State, Head of Government, and the Head of a Multi-Party System. Brazil’s Legal System is based on Civil law that allows court decisions to be based on laws written in a code book that are strictly followed by all court systems in the country. The United States is based on the Common law, which is drastically different than Brazil.
When thinking of moving a business abroad to Brazil, there are some compliance issues that make moving difficult. These issues include: a lack of “Place of Business”, lack of fulfillment of the LTDA, corporate tax filings, employment law, and the FCPA regulations. According to a map that shows the political risk in all countries in the world, Brazil is at a moderate political risk while the United States is at a low political risk. Human rights in Brazil is borderline inexistent, but there are many advancement that are defending these rights. The main challenge for people in Brazil is the inability to express basic rights and citizenships. Overall, there are some compliance issues that would restrict business access, other political and financial gains allow for companies to move business abroad to Brazil.