Brazil-U.S. business: how it is working; how you can participate - special advertising section

Nation's Business, April, 1988 by Christopher Lund, Rik Turner, John Barham, Julia Michaels

233 Successful businesses, located in Brazil and featuring BRAZIL/U.S. Cooperation, invested over a quarter of a million dollars to bring this exclusive report to you.

It cost executives like you, in companies like yours, over two hundred and fifty thousand dollars to bring this information to you. Here's why we'd like you to read it

Why would 233 CEO's of successful business enterprises and associations in Brazil (listed on the final pages of this supplement), some of which are neither Brazilian nor American, pay out over a quarter of a million dollars to bring this special supplement to you?

First, because all are committed to and confident in the future of Brazil. From a simple "return-on investment" point of view, we feel that the Brazil-U.S. "business connection" offers extraordinary opportunities for companies like yours and ours We want to tell you about it.

Second, we believe that more Brazil-U.S. business relationships, like the ones you will read about further on, are important to prospects for our own businesses and vital to the best interests of both nations, economically, politically, and strategically, short and long term.

Finally, because we feel that healthy business relations generate mature relationships in all other areas, and that businesspersons active in the Brazil/ U.S. business connection are normally extremely sane and sensible voices in their home countries when it comes to resolving potentially volatile international disputes. A good recent example is the contribution made by American and Brazilian businesspeople to a negotiated settlement to the impasse over Brazilian government policy restricting access to its computer market. Many in Brazil urged their government to take measures acceptable to the U.S., making the market more accessible to foreign companies. Simultaneously, many in Washington recommended that their government postpone retaliation until such measures could be taken and that, when taken, they be interpreted in a positive light. As of this writing, negotiations continue without resort to retaliation, and we see this as hopeful.

So, 233 successful businesses and associations are investing a quarter of a million dollars to give you the facts about Brazil-U.S. business successes and, hopefully, bring more American and Brazilian businesses together in mutually profitable ventures, aligned with the national aspirations of both countries.

BIG PICTURE STUFF

Before that, it is worthwhile touching on the "big picture". Why are Brazil and the U.S. among the most natural partners in the hemisphere?

On the one hand, because of their similarities: Brazil's territory is roughly that of the continental United States, and its population of 140 million makes it the second largest democracy in the hemisphere and the third in the world. Like the U.S., Brazil is a "melting-pot" and has a population made up of all races, colors, creeds and nationalities.

Among the characteristics responsible for Brazil's peaceful return to democracy in 1985 are a natural affinity for freedom and an appreciation for much of what has come to be called the "American way of life". Furthermore, Brazil is often regarded, against its own wishes, as dominant in South America Like the U.S., therefore, Brazil has at least continent-wide responsibilities. In a way, what the U.S. is to North America, Brazil is to South. And, if the implications of Nicaragua's eventual political direction are a source of concern to the U.S., those of Brazil's would logically seem much more so.

And, as a business partner, Brazil offers extraordinary "macro" credentials. Here are a few facts, merely to give you an order of magnitude:

1. Physically, Brazil is the 5th largest country in the world. It occupies roughly half of South America and represents 35% of all Latin America (including Central America and Mexico). It has 17,000 miles of borders, and if you superimposed a map of Europe on Brazil, Sao Paulo would be on Milan and Manaus on Moscow.

2. It has the largest known iron ore reserves in the world and the largest project in the world (Carajas) to exploit ore. This project also can produce 1.2 billion tons of copper, 25 million tons of manganese, and 48 million tons of bauxite. Brazil also has 20% of the world's fresh water and 25% of its trees.

3. It is the world's largest producer of coffee and sugar, second of soy and cattle and third of corn. It is using only 25% of its arable land and the remainder is 25% of what is left in the world.

4. Its population, as a market indicator, is 140 million today, projected to 180 million by 2000. It accounts for 35% of Latin America's population, and half its population is under 20.

5. Its GDP is the eighth in the world, up from 47th in the forties. It has averaged roughly 7% growth per year over the last 30 years and is the largest of the developing economies. Its GDP is 50% greater than Spain, 65% larger than India, 100% bigger than Australia, and double Mexico. (Sao Paulo state's product alone is larger than Argentina's and, in all of Latin America, second only to Mexico.)