Analysis of Brazil as a Potential Market for Digital Cameras

Running head: GLOBAL BUSINESS MANAGEMENT
Global Business Management
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1GLOBAL BUSINESS MANAGEMENT
Introduction
The demand of the digital cameras is hastily shifting from the developed nations to the
developed countries. The chief cause behind the shift in demand is that in developed countries,
demand for digital camera is reaching maturity stage due to high ownership level of digital
cameras among the consumers. On Contrary, the penetration level of digital camera is low in
emerging nations like Brazil which in turn results in growing demand from the 1st time buyers. In
this report, detailed analysis of Brazil as the chosen country for new entrance will be performed.
Discussion
 Political and social systems
Considering the fact that the political system of a country affects its labor, product and
capital market, it posses the potential to highly influence the revenue of any emerging
organization. In order to establish successful business in the digital industry of a foreign land,
the management of the company must assess the political environment of Brazil. The social
environment of Brazil also posses the potential to impose vital impact on the business of
digital camera in the nation. Currently the political environment of Brazil is stable. However,
as per the researchers, the nation posses the history of rapid changes in the political system.
Moreover, corruption is still considered to be a big issue in Brazil (Menezes et al. 2016). As a
result of that emerging businesses needs to pay additional payments to government official
which can be considered as a major obstacle for emerging market. However, recently the
government is working on globalizing the digital industry of the nation and as the result of
this the corruption level in the mentioned industry is low.

2GLOBAL BUSINESS MANAGEMENT
When it comes to social environment of Brazil, Class distribution in the nation is
comprised of a huge portion of individuals with low or moderate income rate. As a result of
this, Brazil lacks technological advancement. This will be beneficial for the company since
lack of technological advancement mean that majority of the middle class people in Brazil
uses mobile that lacks high quality camera. Thus the company will be able to establish a
successful business in Brazil.
 The degree of openness of the economy :
The degree of openness of the economies of a country is highly crucial since it
determine whether international investors are welcomed to the nation or not. According to
researchers, a country where globalization is highly acceptable tends to have lower barrier to
entrance which in turn impose positive impact on the revenue of the international business
(Prado Jr et al. 2016). Considering the fact that, with the emergence of middle class in the
Brazilian society, the demand for technological goods are increasing, the government of
Brazil is getting incline to globalize the digital industry (Low 2016). Thus, the openness of
the government towards foreign investors has got increased over time. This will positively
affect the company since lower barrier to market means lower investment costs, lower tax
rates and higher cooperation of the government.
 The labor market of Brazil
As per a survey conducted in the year 2018, almost 78 percent of the population falls
under the age group of 17-51 years (Fujiwara 2015). Thus it can be clearly understood that
unlike majority of the developed nation, the population in Brazil is not an aging population.
This in turn has imposed a positive impact on the labor market of the nation. Moreover, being