Business Experiences in Brazil: A View from Inside by Raul Herrera, Partner, Corporate Securities Group, Arnold & Porter, LLP. Presentation featured at the 2nd International Conference: Brazil: A pathway into the future from the Emerging Markets Institute at Cornell University's Samuel Curtis Johnson Graduate School of Management and Better Brazil

1. Business Experiences in Brazil: A
View from Inside
Raul Herrera
New York, September 20, 2012

2. Strengths:
 Solid democratic system
 Responsible fiscal policy
 Commodities: Brazil is the world’s largest producer of
coffee, sugar, chickens, beef and orange juice. It is one
of the world leaders in soybean and iron ore
 Strong financial system: targeting system; real time,
transparent payment system; transparency in the capital
market. Conservative and responsible regulators.

3. Weaknesses:
 Infrastructure
 Boasted and misdirected public expenditure
 High cost of doing business
 Relatively closed economy

4. Opportunities:
 Brazil will host of 2014 World Cope and of the 2016
Olympic Games
 Lively, varied and dynamic society
 Emerging middle-call willing to spend on services and
goods
 Growing influence in the Third World economies

5. Threats:
 Brazil stands on a thin balance of inflation, interest rate
and currency value
 Over-reliance on commodities and its impact on industry
 Government expenses

6. Doing Business in Brazil:
 Brazil’s differences from other emerging markets:
– Abundant natural resources; large and dynamic population; emerging middle-
class; stable democratic system.
 Current challenging and pressing issues
– Cost resulting from poor public services
– Quality of public education
 Key areas of growth and opportunity
– Commodities
– Services
– Infrastructure
 Major concerns
– One to add: uncertainty of judicial results