Political and economic stability in Brazil are the drivers to its current economic status in the world. Sotero in his article Financial times History: Stability and democracy are catalysts of success said that the oil shocks of the 1970s in Brazil exposed fragility of the countries position in the global prominence and caused a crisis that accelerated the end of the military rule. He thus continues to say that it “took a decade for Brazil to find a route to an economic stability in a politically plural, open and competitive environment”. After this the combination of democracy and price stability, achieved in the countries history is known to be the route of the much of the current good news of Brazil’s economic stability (Sotero).
The economic stability which has been witnessed in Brazil since 2003 has brought reforms especially in the business environment. Financial times History: Stability and democracy are catalysts of success continues to say that “economic stability and income distribution programs have contributed to the decrease of the countries levels of inequality and the expansion of investment and business opportunities”. Another important aspect about the country’s economic stability is that Brazil was shielded from the worst effects of global meltdown by the shallowness of its capital markets and its limited exposure to the international economy (Financial times History: Stability and democracy are catalysts of success).
The most important prospects about Brazil and why the country has a great potential for business opportunities is that the country is economically and politically stable according to Wheatley and Lapper (Surfing a big wave of confidence, Brazil – Financial Times). They continue to say that the country’s home markets are booming and have become a huge magnet for foreign investment. Surfing a big wave of confidence, Brazil – Financial Times also indicated that “it is the capital markets which are attracting massive inflows from overseas will at the same time the Brazilian society is being constantly transformed the country has experienced an increase in income and a fall in inequality” (Wheatley and Lapper).
The country survived recession. Wheatley and Lapper said that although Brazil has a history of economic turbulence and also as a result of the recent runaway recession the country has survived. This is because the people and companies were quick to adapt to changing circumstances. In their article Surfing a big wave of confidence, Brazil – Financial Times Wheatley and Lapper said that due to changes in the law allowing lenders to foreclose on non-players it has helped in an increase in credit and also has created new forms of lending to new investors. According to Surfing a big wave of confidence, Brazil – Financial Times this shows that “Brazil has laid the foundation of growth hence there are strong prospects of both economic and political stability which are the basis for investment and business operations within the country” (Wheatley and Lapper).
Infrastructure plays an important role in marketing when exploring investment opportunities within a country. Global business management: a cross-cultural perspective stated that “the transportation system of Brazil is very extensive with 18,275 miles of railroad, 1,071,821 miles of highway roads and a vast waterway system” (189). The continued development in the telecommunication industry in Brazil is critical to the countries economic growth and has promoted its capability of competing in global markets therefore presenting potential opportunities for doing business within the country (Adekola and Sergi 189).