Introduction

Our firm is selling baby’s milk powder, we had already market our product in malaysia, we had also wellknown trademark and slogan. The purpose of planning to export our product to overseas is we would like to expand our firm to become a international business company. We would like to develop to larger organization. The country that our firms chosen is Brazil, because we believes Brazil had the potential buying power of our product!

Brazil is located in the middle of south America with the lattitude of 10 degree0’0”S and the longtitude of 55 degree0’0”W. Brazil has a quite stormy and bloody history. There were lots of coups d’etat, riotings etc in brazil.

The yeras before 1822 brazil is rule by Portugal, so Brazilian history is always connected with Portuguese rules. Since 7^th of September 1822, Brazil has been an independent country, 7^th of September is the independent day of Brazil.

The population of Brazil in 2010 is approximately around 191,241,714, and Brazil birth rate is 18.43 (births/1,000 population). The population in Brazil is not so high is because the hospital facilities in same rural area is not so advance. But Brazil had turn into a developing country in this few years. So we believe the birth rate will be higher in the next few years.

Being such a large counrty, the climate of brazil can be divided into 5 regional climate zones which is: equatorial, tropical, semi-arid, highland tropical and subtropical. The states that in the different cliamate zone has different cliamte and temperature. The main cities on the inland plateau, Sao Paulo and Brasilia, enjoy mild weather with average temperatures of 19°C. The coastal cities and area like Rio de Janeiro having warmer climates, although tempered by trade winds. Rio’s average temperature is around 26°C but when it is summer its temperature can goes over 38°C. Down south Brazil experiences a subtropical climate with hot summer and chilly winters. Between July and August, the southern winter, temperatures fall below freezing. The Amazon basin is warm and wet, and with high humidity but temperatures is peaking around 32°C. Amazon has abundant rain between November and May, and less precipitation between June and October, although it is well soaked all year round.

Geographical

Our firm is planning to sells the baby’s milk powder starting first in the urban area, because the income of the people in the urban area is much higher which they could afford higher price goods and import goods. In the other hand living cost in the urban area is also higher. The location that we choose is the capital of Brazil which is Brasilia positioned in the central part of Brazil. Previously, Rio de Janeiro is the capital of Brazil, but later Brasilia was chosen as the capital for its convenient positioning in the center-west of Brazil. It is closer to the other regions of Brazil in comparison to Rio de Janeiro.

Physical Geographical environment impact

Population

The population in Brasilia approximately around 2.3 million, according to the information there are lot of people migrating from the rural part of Brazil to the capital in this few years. Because there are more job opportunities in the urban area, which means the population in Brasilia will growth, in the other hand the birth rate in this city will also growth. Our firm believes that we will have a good selling of our goods in this city.

Climate

The climate in Brasilia Brazil is mild and comfortable any time of year. It is not hot like most of Brazil, and there is no winter season with heavy rainfall. The climate in Brasilia is one of the things that make it a great destination.

The 2 diagram shows the rainfalls and the temperature in Brasilia. The temperature in Brasilia is between 14°C-30°C throughout the year. Brasilia having the raining seasons in between November to May, the highest rainfall is in December. In conclusion Brasilia weather is not .so hot compare to other part of Brazil, consumer usually likes to shop under this type of weather. This is the physical advantages for our product selling in Brasilia.

Landscape

Brasilia is having most of the 80% of flat land, and It’s lies within the Federal District of Brazil, 570 miles (917 km) northwest of Rio de Janeiro, the city is linked with the coast by road and rail and has an international airport. Airlines provide the chief links with the rest of the country. The city is notable for its urban plan and modern buildings. Brasilia is having nearly most flat land, and advanced route. This is also the advantages for us to delivery our goods to the city.

Human Geographical impact

The facilities of hospital

As we know Brazil is still a developing country and its facilities in the hospital in some rural area are so poor, this is why the reason of low birth rate 18.43 (births/1,000 population). But now Brazil is developing and the government is also improving the hospital facilities in other area, so it result the birth rate will be growth. When the birth rate is growth, the demand of baby’s milk powder will also increase.

Female Career

Why is the birth rate in some develop country is so low? For example the birth rate in united state America and Singapore. Because those develop countries female has their own career, because of they are busy of their working and they had no time to take care of their kids. Therefore educated woman is having their own career so therefore their give birth will be lesser than those women who not educated. As we know Brazil is a developing country and there are not much woman is educated. In conclusion we are having another advantages because uneducated woman give birth rate is higher. Maybe they are having 4 to 5 children, and for educated woman they are only having 1 or 2 children.


You can get the more accurate geographies of brazil from:  
 http://www.weather-and-climate.com/average-monthly-precipitation-Rainfall,Brasilia,Brazil

Political situation & its impact on the product to be exported

Brazil is a Federal Republic with 26 states and over 5000 municipalities and which comprised of the Federal District. The federal capital is Brasília which is located in the federal district.  Furthermore, the federation is set on five principles which are sovereignty, citizenship, dignity of human beings, and social values of labor and freedom of enterprise, and political pluralism. The 1988 constitution grants broad power to the federal government, made up of executive, legislative, and judicial branches. The executive and legislative are organized independently in all three spheres of government and the judicial is organized only at the federal and state or federal district spheres.

The basic law of the country is the Brazilian constitution which are establishes the system of government, the attribution of powers to the Legislative, Executive and Judiciary branches of government and the legislative competence of the  federal, state and municipal administrations. Although Brazil is an economic leader in Latin America, it has failed to become an effective global power due to the social and economic problems. After the act of shielding Brazil from the 2008 and 2009 financial crisis by President Lula and his economic team, although they were affected but it was not a major hit as opposed to other countries.

Since January 1996, profit of Brazilian company paid to the foreign investors not subject to any withholding tax. Brazil is relatively open to foreign countries and do encourage the incoming and outgoing investments of the country. Foreign investment is not subject to government approvals or authorizations, and there are no requirements for regarding minimum investment or local participation in capital.  But except in very limited cases such as financial institution, insurance companies and other entities subject to the regulating authority of the central bank of Brazil. There is free of any tax if you invest foreign capital in Brazil within the amount stated in the foreign direct investment mode of the electronic system of registration of the central bank of brazil  may be repatriated at any time and there is no minimum period of investment. But if any excess over the amount which you stated in the foreign direct investment mode will be treated as a capital gain and it will subject to a 15% withholding tax.

In addition, Brazil is one of member of the World Trade Organization and is a member of the Latin American Integration Association. Brazil follows the World Trade Organization standards for tax classification, customs valuation, dumping, and subsidy and so on. Brazil is also signed the Treaty of Asuncion that created MERCOSUL is composed of 4 sovereign member states which are Argentina, Brazil, Paraguay and Uruguay. Which are presently includes Venezuela and Chile, Bolivia, Peru and Ecuador as associated members. The objective of MERCOSUL is free transit of production goods, services and non tariff restriction between members of states. They also fixing of a common external tariff and adopting of a common trade policy against with nonmember states, and get the balance of position in regional and international commercial. The main goal of MERCOSUL is to stimulate existing trade market and foreign investments among its member. Brazil is one of MERCOSUL of members, so it brought us easily to export on our milk powder for babies to others country. 

Besides that, human rights in Brazil are protected by Brazilian constitution and laws but the unavoidable abuses are still persisting nowadays. One of the serious issues that the government are fights actively against was Slave Labor and the sadness condition was resulted Brazil been remarked poor record since last century.

The slave labor referring to the workers are forced to work to pay their debt to the employee. The debt is an ever-increasing debt. Although it is prohibited by the Brazil government, the group of slave still exists in most of the industry. According to last investigation of local newspaper, over 40,000 Brazilian who find themselves serve the company for no real wages and individual freedom was limited from certain distant of work place from where they live.

It has brought us advantage on export the milk powder business. The countries that our firm targeted to export the products was grouped as high-cost country sourcing. In Brazil, we managed to get labor in slightly low cost compared to putting business in supplier countries said USA and UK. Not to say increase the numbers of slave labor, but the company come out with a plan of helping them to clear the debt while they work for us for the wages.

Brazil economic condition

Brazil’s economic is the largest among all South American and also is the world's eighth largest in nominal GDP and ninth largest in purchasing power parity. Brazil has moderately free markets and inward-oriented economy. Besides that, Brazil is one of the fastest-growing major economies in the world with an average annual GDP growth rate of 5%.  Brazil's economy grew at its fastest rate in at least 14 years in the first three months of 2010. Its GDP surged by 9% compared with the same period a year earlier.

     Brazil is characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, Brazil's economy outweighs that of all other South American countries and Brazil is expanding its presence in world markets. Since 2003, Brazil has steadily improved macroeconomic stability, building up foreign reserves, reducing its debt profile by shifting its debt burden toward real denominated and domestically held instruments, adhering to an inflation target, and committing to fiscal responsibility. In 2008, Brazil became a net external creditor, Brazil's external debt totaled less than its foreign reserve holdings, and two ratings agencies awarded investment grade status to its debt. After record growth in 2007 and 2008, the onset of the global financial crisis hit Brazil in September 2008. The Brazil was the 10 biggest purchasing parity countries in the world with $2.013 trillion in US dollar in 2009. Brazil’s inflation rate was 4.2% in 2009.

    Brazil's currency and its stock market (Bovespa) saw large swings as foreign investors pulled resources out of Brazil. Brazil experienced two quarters of recession, as global demand for Brazil's commodity-based exports dwindled and external credit dried up. However, Brazil was one of the first emerging markets to begin a recovery. Consumer and investor confidence revived and GDP growth returned to positive in the second quarter, 2009. The Central Bank expects growth of 5% for 2010. The Brazil economy has been predicted to become one of the five largest economies in the world.                                                       

https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjOTe9DeSTiAaSfRA_88KxyjzXh3cuQ3tBs25RC_Xc64nlgGgBcCY_rtTw9RaNqRS2gJC70dhARyNDfcpAEvhtpOdGYiO331TUMPcoigIh906AK99cnlDvqFq54-hZK7yHVwNNh8e9s9GYf/s1600/11jun3.bmp

        So we can see Brazil’s economic was growth very fast. But the Much of Brazil's economy is driven by domestic consumer demand rather than exports; it means the Brazil domestic demand was better than Brazil exports. The Brazil’s distribution family income was 56.7. It means Brazilian is affordable to buy baby milk powder; the price of baby milk powder won’t bring a big problem to Brazilian.

      Brazil’s freedom to start, operate, and close a business is limited by Brazil’s regulatory environment. Starting a business takes more than three times the world average of 35 days, and obtaining a business license takes much longer than the global average of 218 days. So it will quite hard to export baby milk powder to Brazil.

       In 2008, Brazil’s weighted average tariff rate was 7.9 percent. Import bans and restrictions, market access barriers in services, high tariffs, border taxes and fees, restrictive regulatory and licensing rules, subsidies, complex customs procedures, and problematic protection of intellectual property rights add to the cost of trade.

Socio-cultural background & its impact on the product to be exported

Brazilian culture is a very different nature of the culture. Between an ethnic and cultural mix of Indians in the colonial period, the Portuguese and Africans formed the subject of Brazilian culture. In the late 19th and early 20th century Italy, Germany, Spain, Arab and Japanese immigrants settled in Brazil, played an important role in their culture to create a multi-cultural and multi-ethnic society.

Brazil's unique cultural heritage has been different people and different
Culture. First of all, by the indigenous tribes living in the 8000 years ago, Brazil became Portugal Colony in the 16th Century; it was discovered by the Europeans. 1822, Brazil received the emerged since independence, its rapid growth as the population around the world to settle there. Traditional agriculture based on a very economic and Brazil with its production of sugar, coffee, soybeans, orange juice and beef. Brazil also has a very strong service Fuel and industry in the last century economy.

Social cultural of diversity of Brazil is a remarkable national / particularly in the Atlantic rain forest diversity in multi-language country from colonial rule began. According to the Brazilian Geography and Institute for Statistics (IBGE), more than 100,000 immigrants came to Brazil, to date (including the 4 million African slaves). The manufacture of whole milk powder is a highly skilled and professional business in Malaysia with quality and consistency an upmost parameter. This has helped our manufacturer build a reputation for quality that is second to none and is a critical element of the service they supply so that we can export baby milk powder to Brazil.

Lastly, once we have verified the country socio-culture, we are going to exporting our good which is baby milk powder. Baby milk powder is a product also considers for a service, it might be used by every baby. Almost every day have thousand babies born. So we will get Infant Formula Stage 3 Baby Milk Powder. It comes from Victoria Australia. Besides that, it got many vitamin such as Vitamin C, Vitamin A, Beta-Carotene, Vitamin D, Vitamin E, VitaminK1, Vitamin B1, Vitamin B2, Vitamin B6, Vitamin B12, Biotin, Niacin,Folic Acid, Pantothenic Acid, Taurine, Choline, Inositol. This impact to our buyers to have confidence in our products which is baby milk powder will increase our company profit and to earn more foreign exchange and began a company's products enhance the visibility and understanding of company's profits.

In addition, it is not easy to export to another country's goods or services because all countries to protect its domestic business product. The reason is to encourage local people to support their own manufacture. Therefore, there will be obstacles to prevent imports of products from other countries.

recommendation on important aspects to look out for

As the international business development manager, when we want to export baby care product to Brazil there are so many important aspects that we need to pay attention look out for achieve a successful business, such as population of baby aspects, quality aspects and religion aspects.

The graph shown as below, there is showing population birth rate in Brazil. Data collected is by per 1000 persons average annual number of birth during a year in mid-year population. Population birth rate in Brazil is obviously increasing 14.85% from 2007 to 2008.  As we can see, during 2007 table shown as below it show per 1000 person only to constitute 16.3 births in Brazil. But during 2008, birth rate is obviously increasing 2.43births. The data is continuity maintain during 2009. It is show rate of population growth is slightly increasing at the same time. This graph is created by depends on both the level of fertility and the age structure of the population. Government of Brazil commitment to privatization and lower tariffs .Hence, Brazil is not only the largest economy in Latin America; Brazil also has huge potential growth in consumer market. So this is great opportunity that we export our product of milk powder for babies.

Secondly, standard of quality on infant formula (milk powder) is very important to a new born baby. It is because infant formula is the only source of nutrition for them other than breastfeeding. There are few ingredients which are consisting in infant formula such as carbohydrates, proteins, lipids, minerals and vitamins. Typical raw materials in different proportions can cause different result in final output. If bad quality of infant formula will cause children deaths are link with nutrition problems. According to news of earth times, (http://www.earthtimes.org/articles/news/233520,53000-babies-sickened-by-milk-powder-cover-up-found--summary.html)  hospitalized found out 53000 infant linked to the consumption of powdered milk laced with the chemical melamine. Furthermore, company of SanLu had covered up for months the contamination of its infant formula products. Our company strictly to fight against about this problem happens on our infant formula products.  So our milk powder emphasis on nutrients which can protect children drink with healthy even without breastfeeding. The primary goal of our company is achieve human need which is we will look out carefully with manufacture department. We promise that we will not mistake on human error and our product will not cause infant take risk with their healthy problems. Our product is easily adjusting any type of formulation and which on truly in basis. We not only offering quality good product it also reducing production costs and it can achieve market growth which existing in current market.  

Lastly, religion aspect is another one important aspects in Brazil that we must pay attention on it. Most of Brazilians are breastfeed their infant for the first six month of their lives. But some people think breastfeeding is not every woman can do it. (http://www.bbc.co.uk/news/health-10851615) Even religion of Brazil is support breastfeeding but we can argue that some woman choose infant formula feeding is because they feel their babies is not getting enough of milk. Meanwhile, babies of them will continued cry after not enough full and this will cause mother no longer having encourage to breastfeeding to their babies. I believe most of women will getting when they are not produce adequate quantity of milk to feed their babies Apart from that, most of mothers do not notice that what they eating or drinking will affect quality of breastfeeding to their babies. For example, if a mother taking alcohol during breastfeeding period might lead to accidently delivered toxic to the baby through the mother’s milk.  Thus, infant formula product is another option for feeding babies. The benefit of Infant formula is to increase babies’ nutritional needs without breastfeeding. This is another great opportunity that our companies enter this market of baby health product. Infant formula not only subsidiary of breastfeeding it also helps who mothers feel uncomfortable when make it breastfeeding or facing some personal healthy problem and their babies still can receive nutrient.  

http://www.youtube.com/watch?v=M8BjnGCNahU

Challenges or Limitation

The limitation that we may face export baby milk powder to Brazil is the competitor. For example, the main competitor is that compete with us is Nestle, as we know, Nestle is an international company, and they also have a good reputation among all the people. So it will very tough for us to compete with those companies.
Since, the milk crisis has sparked global concerns about food products made with Chinese milk or milk powder. Brazil was indefinitely banned all Chinese food imports because of safety concerns. Brazil's National Agency for Sanitary Vigilance said it acted because of the contaminated milk crisis in China that has killed four children and sickened another 54,000 in the Asian nation. Since this milk crisis was happened, Brazilian will choose the good reputation milk powder rather than the new branded milk powder.
As Brazil enters the 2010s and a new president is set to take office in 2011, the new administration will face a myriad of policy challenges over the coming decade. The impressive economic performance under President Luiz Inácio Lula da Silva has significantly raised the bar for any future administration, leaving a delicate combination of policy objectives from continuing to improve living standards and addressing a widening fiscal shortfall to meeting the security and infrastructural challenges ahead of the FIFA World Cup in 2014 and the Rio de Janeiro Olympic Games in 2016. However, we must also aware the political risk in Brazil. Political risk could suffer as a result of political changes or instability in a country. Instability affecting investment returns could stem from a change in government, legislative bodies, other foreign policy makers, or military control. Political risks are notoriously hard to quantify because there are limited sample sizes or case studies when discussing an individual nation.


Besides that, import licensing rules are very tough. The import of most of the products implies issuing a preliminary a license at the SECEX (Secretariat of Foreign trade), which is the only organization authorized to issue this license. However the list of the products subject to this preliminary license is not publicized. It is available only with registered and authorized users. These licenses are valid for 60 days starting from the date of dispatch of the goods, sometimes it starts from the date of applying for the license. This period is often insufficient. It is then necessary to apply for a new license. For textiles, rules are even stricter. The license is granted only if the payment is effective within 30 days from the date of B/L. Importers compulsorily have to prove that they effectively made the payment within 30 days.


The imported goods are always blocked in customs because of documentary problems. All the imports should be accompanied at least with 2 copies of the commercial invoice and the B/L. If they do not match the legal requirements of the country, Customs are entitled to levy heavy fines, which may go even up to 100% of the usual customs duties. It is therefore advisable to work through a very good broker in Brazilian customs, who is able to get the information on time about the appropriate customs rules. So it means not that easy export our milk powder to brazil.