Professional

Report

Name: Registration: 02734278.

Alejandra Gpe. Ortiz Beltrán. 02742570.
Giselle Granados Sánchez. 02671566
Prisilla Lara González. 02727728.
Roberto Mata Márquez.

Course title: Teacher’s name:

Business in Americas. Gabriela Gámez Corona.

Module: Activity:
Doing business in Central and South Assignment 8
America.

Date: 19th/April/2016. Team: Canada.

Bibliography:
 Singapore, são paulo. (2016). Trasparency Triumph. May 2015, de
Trend Watching Sitio web:
http://trendwatching.com/trends/transparency-triumph/

Objective:
To detect business opportunities based on local trends.

Procedure:
 We read the article and then identify the three current trends in Latin
America.
 We created five business ideas for a small Mexican company wanting to
expand their market.
 We believe the same company and a country of Latin America, analyze
the pros and cons based on cost of capital, Transparency and corruption,
ease of doing business, number of procedures to start a business,
bureaucracy, Foreign Inverciones, The tax rates, R & D and clusters and
human capital.
 Finally we conclude.
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Results:
1. Identify the top three current trends in Central and South America,
according to this article.

Transparency: Thanks to their increasing ability to access (and distribute)

information, Latin Americans expect to know everything about products,
services, experiences and brand stories before they purchase. A long history of
bad brand behavior means the time for trust is long gone. Now, the only option
for brands is a transparency triumph. Against this dire backdrop, brands need to
embrace transparency wholeheartedly to earn back any confidence from
consumers.

There are 3 paths for TRANSPARENCY in 2015:

1. PROCESS, PRODUCT, PRICING & PEOPLE: Brands are being

transparent and honest across all aspects of their business.

2. OPEN FOR (BETTER) BUSINESS: Brands and governments are

inviting the participation of the crowd.

3. LIFTING THE VEIL: Consumers are embracing services that lift the
veil on opaque and corrupt organizations.

2. Based on that list, come up with five trendy business ideas for a Mexican
small business eager to enter any of those markets.

1.NIGHT ECOLOGIC DIAPERS

In the statistics that the article mentions is the confidence in quality, so by doing
different diapers, a combination with nature. A product that gives a twist of
disposable, biodegradable diapers. By creating a product like this, new diapers
night and hypo-allergenic soft, ultra provide night time protection and advanced
innovative technology of thin base of up to 20% more absorption. ultra-thin with
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super soft, dry to the touch top sheet design provides superior comfort for a
good night's sleep.

2. TOMATO COSMTICS

A trend recently become personal care and natural style, we would take
advantage with an idea of the agriculture of Sinaloa. Here the history of
production would be shown to leverage customer confidence, mentioning the
possible allergic effects because it would be a new product ever created.

3. BUS BREAKFAST
May exist a breakfast business, but we will create a mix, here we would be
giving an extra customer service, would not exactly a home service, if not a plus
being close to the customer, taking their trust. It would be a mobile kitchen
where people to hear the song of the business or see the logo will know that
breakfast service is at your disposal.

4. CHICKPEA FLOUR

Chickpea flour for all kinds of pastries. It would support the healthy trend,
because the benefits are here to help the cholesterol and serious suitable for
diabetics, bread, hot cakes, pastries and more. Here serious cereal chickpea
base which is easy to produce, and is known that Sinaloa is the number three
worldwide producer.

5. ORTOPEDIC HEELS

It is known that no templates or ground floor and shoes designed, but should
take into account all events requiring a woman, so is the creation of a line of
ortpedic heels, where the set and this template.

3. Consider that same Mexican small business and a Latin American

country of your choice, to highlight the pros and cons of its business
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environment based on these elements:

Mexican small business: Bus Breakfast.

Country: Brazil.

a) Cost of capital

The cost of capital is used to make investment decisions, in these case it will
help us to make an study to see if is profitable to invest in that business in the
country. And obviously the disadvantage is for the owner when the project is
implemented under consideration.
Is important to considered Brazil as a developing country and, although often
interpreted as a precursor of "high growth" also means that they are not yet
developed various aspects of the economy. The consumer base, the regulatory
environment and the investment sphere are not as mature as in developed
countries, so that should take into account some details.

b) Transparency and corruption

Brazil has a transparency law which allows free access to information to all
persons present in the country regardless of any gender or social status.
On the other hand the corruption damages the functioning of the administrative
machinery, preventing it from responding to strategic guidelines aimed at
developing their capacity and effectiveness. Progressive administrative
agendas impedes the achievement of effective results and promotes stagnation.
Brazil became known by the levels of corruption among politicians and
businessmen with senior officials. However, a recent study by The Economist
suggests that the country is finally ready to polish your performance, and it is
estimated that in 2013 more corruption will result in increased prison sentences,
so there will be a weakening effect.
c) Ease of doing business
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Doing business in Brazil refers to the time, steps and other requisites that the
process of starting up a business in the country requires. The ease of doing
business is a key component of a country's competitiveness and as such it is
included as part of the Government Efficiency factor in the competitiveness
index of the IMD World Competitiveness Center. The ranking includes three
indicators of doing business:
1. The number of days needed to start-up a business
2. The number of procedures required to do so
3. The costs of terminating a redundant worker (or redundancy costs).

d) Number of procedures to start a business

1. Check the name of the company

2. Pay registration fees
3. JUCESP register for the NIRE and CNPJ
4. Get the INSS
5. Register to ICMS
6. Registration in the Register of Taxpayers Municipal (Municipal
Secretariat of Finance) of the City of São Paulo
7. Apply and obtain digital certification for the use of electronic invoicing
8. Apply to the municipality for a permit operation (auto license operations)
9. Registration and payment TFE (Registration Fee Inspection
Establishments) Municipal Register of Taxpayers
10. Registration of employees in the social integration program (Social
Integration Program PIS)
11. Open a special unemployment fund (FGTS) in the bank
12. Notify the Ministry of Labour (General Registry of Employment and
Unemployment, CAGED)
13. Registration in the Patronal Union and the Union of Employees

The advantage of this, is that there will not be problems to start with the
business as long as we comply with these requirements. The cons is that is
enough work to do and maybe it could be a option to give up this project.
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e) Bureaucracy

The reform of laws and regulations for the opening and administration of a
company in Brazil has not kept pace with economic growth, which has several
obstacles to foreign corporations.
Brazil is ranked 126 among 183 countries in the latest Global World Bank
report, which assesses the ease of starting a business, deal with construction
permits, registering property and paying taxes. On average, 13 procedures and
119 days of work are required to start a business in Brazil; while building
permits require an average of 17 procedures and 469 days to finally get the
authorization.

f) Foreign investments

Foreign direct investment into Brazil boomed over the period 2009-2011, but
has been slowing down ever since. After reaching USD 64 billion in 2013, FDI
inflows to Brazil declined to USD 62 billion in 2014 and again to USD 56 billion
in 2015, a 23% decrease on the previous year. However, Brazil remains the
largest recipient of FDI in Latin America and the fifth largest recipient in the
world. The country is currently the fourth largest investor in emerging markets
and the largest investor in Latin America.

g) Tax rates.

 Individual Income Tax:Brazil has a progressive personal taxation system

under which individuals are taxed up to a maximum of 27.5% of their
income

 Corporate tax: The applicable tax rate will vary from 4% to 17.42%,
depending on the type of activity—industry, commerce, services, and so
on.

 Social security tax:

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o Employer: 37.3% of the gross salary comprising 28.8% social
security and 8.5% for severance fund.
o Employee: 7.65% to 11% of the gross salary. The employee’s
payment, which is capped, is based on a contribution salary table,
provided by the government.

 Capital gains tax: Capital gains are generally subject to tax at 15% (with
exceptions), and gains from the sale of securities on a public stock
exchange are taxed at 20%, for all Brazilian residents.

h) R&D and clusters.

Industrial clusters, which are commonly targeted to receive financial support
allocated to locally based development projects, are seen as an effective
industrial policy tool for improving productivity and generating employment.

i) Human capital.
Brazil: size matters Countries with population > 150 million Countries with
area > 5 million km2 Countries with GDP > USD 600 billion Brazil is a
BIG country EUA Brasil China Rússia Índia Japão Indonésia Paquistão
Nigéria Bangladesh México Países baixos Reino Unido Coréia do Sul Itália
Espanha França Alemanha Canadá Austrália Fonte: MIC (Brasil &
Parceiros 2005)

Conclusion:
Brazil is a very good option for investing your money. Its a country with a very
nice culture and many great traditions.
People are nice and friendly even doing business, its important to know about
Brazilians couture before doing business.