Brazil Cost (Portuguese: Custo Brasil [ˈkustu bɾɐˈziw]) refers to the increased operational costs associated with doing business in Brazil, making Brazilian goods and services more expensive compared to other countries. There are several factors that contribute to the extra cost, including:
- High levels of public deficits;
- The economy divided into cartels;
- Inefficiency of public services;
- Maintenance of high real interest rates;
- Exaggerated net interest spread of financial institutions (among the highest in the world);
- Excessive bureaucracy for importing and exporting, creating difficulties for foreign trade;
- Low education levels and lack of qualified labour;
- Excessive layers of bureaucracy (red tape), e.g., to start a company in Brazil takes at least 120 days;
- High levels of corruption within the public sector;
- High tax burden;
- Expensive labour costs;
- High social security costs;
- Complex and inefficient fiscal legislation;
- Economic instability;
- High electricity cost;
- Legal uncertainty;
- High interest rates;
- High crime rate, which adds extra security costs;
- Underdeveloped infrastructure, including a deteriorated network for domestic shipping by rail, highway and coastal navigation*.
See also[edit | edit source]
References[edit | edit source]
- "From crisis to crisis in Brazil". The Economist. 24 July 2007. http://www.economist.com/node/9537065. Retrieved 29 October 2011.
- Parra-Bernal, Guillermo; Winter, Brian; Marfinati, Bruno (13 October 2011). "Epic bank heist exposes Brazil's security flaws". Reuters. http://www.reuters.com/article/2011/10/13/us-brazil-security-idUSTRE79C0OD20111013. Retrieved 29 October 2011.
- "Why everything costs so much in Brazil". Super Interessante. 29 April 2013. http://super.abril.com.br/blogs/crash/why-everything-costs-so-much-in-brazil/. Retrieved 2 May 2013.
- "Moving belongings overseas: Shipping blues". The Economist. 30 June 2010. http://www.economist.com/blogs/gulliver/2010/06/moving_belongings_overseas. Retrieved 29 October 2011.
- "A survey of Brazil: An unfinished revolution". The Economist. 25 March 1999. http://www.economist.com/node/320213. Retrieved 29 October 2011.
- "UPDATE 1-Brazil throws $25 bln lifeline to sagging industry". Reuters. 2 August 2011. http://www.reuters.com/article/2011/08/02/brazil-industry-idUSN1E7710X620110802. Retrieved 29 October 2011.
- "Untangling the custo Brasil". The Economist. 20 August 2012. http://www.economist.com/blogs/americasview/2012/08/electricity-taxes-brazil.
- "Converging economies: One-track bind". The Economist. 24 September 2011. http://www.economist.com/node/21528985. Retrieved 29 October 2011.
- "Land of promise". The Economist. 12 April 2007. http://www.economist.com/node/8952466. Retrieved 29 October 2011.
- "Brazil’s industrial policy: Bungle in the jungle". The Economist. 17 February 2000. http://www.economist.com/node/284117. Retrieved 29 October 2011.
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