Market Profile Analysis- Cultural, Political, and Economic Insights for Strategic Expansion

Market Profile Analysis- Cultural, Political, and Economic Insights for Strategic Expansion

Cultural Profile

Category	United States	Brazil
Commonly Spoken Languages	English	Portuguese
Commonly Practiced Religions	Protestantism, Catholicism, and non-specific Christians.	Protestantism, Roman Catholicism, and other Christians
Power Distance Index (PDI)	Low power distance	High power distance
Individualism Versus Collectivism (IDV)	Very high in individualism (91) (Leng & Botelho, 2010)	Low in individualism (38) (Leng & Botelho, 2010)
Motivation Towards Achievement and Success (MAS)	Masculinity culture is associated with the desire for material wealth.	Feminine culture associated with cooperation and quality of life.
Uncertainty Avoidance Index (UAI)	Low uncertainty avoidance (46)	High uncertainty avoidance (76)
Long-Term Orientation Versus Short-Term Normative Orientation (LTO)	Short-term orientation	Long-term orientation
Indulgence Versus Restraint (IVR)	Indulgent society (68) (Leng & Botelho, 2010)	Indulging society (59) (Leng & Botelho, 2010)

Political and Economic Profile

Category	United States	Brazil
Political System	Democracy	Democracy
Current Leaders	Joe Biden	Luiz Inazio Lula da Silva
Economic Classification	Developed country	Developing country
Economic Blocs Impacting Trade	NAFTA (the North American Free Trade Agreement)	MERCOSUR
Gross Domestic Product	$25.44 Trillion	$1.92 Trillion
Purchasing Power Parity	$64,623	$20, 685.
Gross Domestic Product Per Capita	$80, 412.41	$11, 178

Legal and Regulatory Profile

One of the vital regulatory frameworks that will affect a new business is labor laws. In the US, labor laws are diverse and vary across different states. However, there are universal laws regarding minimum wage, anti-discrimination, and workers’ safety (Bolaky & Freund, 2004). The US operates on an at-will employment framework, which means employers are free to hire and fire. However, the case differs in Brazil, where the regulatory frameworks focus on employee protection (Ernst, 2005). Employers must offer a paid vacation, 13th-month bonuses, and other benefits. Besides, there are strict termination regulations that protect employees against unfair termination and offer severance packages in case termination materializes.

Also, both the US and Brazil impose non-tariff barriers to avoid dumping and protect local players. The US has relatively friendly non-tariff barriers such as intellectual property regulations, sanitary requirements, and quality standards (Bolaky & Freund, 2004). On the other hand, Brazil is historically known for its stringent and bureaucratic non-tariff-based restrictions, including stringent trade requirements and long customs clearance procedures (Ernst, 2005). Brazil’s trade regulations require foreign businesses to be pragmatic and form partnerships to evade some of the implications of the regulations.

Another impactful trade-based arrangement that affects business in the US and Brazil is membership in trade blocs. On the one hand, the US has multiple bilateral and multilateral agreements impacting trade such as USMA and NAFTA. However, although Brazil has pursued multilateral agreements, it is to a lesser extent when compared to the US. A business focusing on overseas exports and imports may have a hard time in Brazil compared to the US. One of the advantages of trade agreements is the lifting of tariff and non-tariff barriers for member states, which means that companies in the affected country benefit from reduced operational costs. Since Brazil has limited trade agreements, foreign businesses that rely on imports for factory processes and later export products will likely incur more costs in some markets.

References

Bolaky, B., & Freund, C. L. (2004). Trade, regulations, and growth (Vol. 3255). World Bank Publications.

Ernst, C. (2005). Trade liberalization, export orientation, and employment in Argentina, Brazil, and Mexico. ILO, Employment Analysis Unit.

Leng, C. Y., & Botelho, D. (2010). How does national culture impact consumers’ decision-making styles? A cross-cultural study in Brazil, the United States,s and Japan. BAR-Brazilian Administration Review, 7, 260-275.

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Prompt
In this milestone, you will continue to use the Business Brief Template (located in the Guidelines for Submission section of this document) to complete Section Two. Use course resources as well as the INT 220 Library Guide to support your responses.

Specifically, you must address the following rubric criteria:

Market Profile: Explore and explain the cultural, political, and economic environment of your selected market to help inform future business decisions regarding expansion from the domestic market.

Cultural Profile: Compare and contrast important cultural elements of your selected market against those in the domestic market, including communication, dimensions of culture, attitudes, common business etiquette and practices, and at least five other important aspects of culture.
Political and Economic Profile: Compare and contrast important political and economic factors for your selected market against those in the domestic market, including political systems and ideologies, current leaders, economic measures or characteristics used in classification, and government intervention on trade.
Legal and Regulatory Profile: Compare and contrast important legal and regulatory requirements of your selected market against those in the domestic market, including trade restrictions, regulations of products or services, legal processes for business transactions, and import restrictions or documentation.
What to Submit
Template: Business Brief
Submit the template as a 500- to 650-word Microsoft Word document. As you completed Section One for Milestone One, the template you submit for this milestone should have Section One and Section Two completed. Sources should be cited according to APA style.

My chosen country is Brazil