Brazil Presented to: Apple inc. Presented by: Location • Mathematical Location: Latitude: Between 4 degrees North, And 73 degrees south Longitude: Between 40 and 70 Degrees west Situation: On the East coast of South America, East of Peru. Formal Region: South America Functional Region: Brasilia Demographic Comparisons Country Name Population Growth HDI (Human Development Index) Life Literacy Expectancy Per Capita GDP Brazil 1.166% 0.699 72 Years 88.6% $10,100 Peru 1.193% 0.723 71 Years 92.9% $8,500 Bolivia 1.72% 0.643 67 Years 86.7% $4,700 Demographic Analysis Brazil contains a healthy, well educated population who are willing to work for approximately 10,000 dollars per year. It has similar demographic status to other nations in the region and therefore has no imminent threats surrounding it. Brazil has an infant mortality rate of just 21 deaths per 1,000 live births which helps contribute to its average life expectancy of 72 years, one of the highest in the region. Demographic Transition Model Brazil is currently in stage three of development. This is the stage best suited for industry. Brazil has a large working population with a healthy but manageable natural increase rate which ensures that Brazil both has a large enough population to allow manufacturing to thrive, and one small enough to support into the future. Economic Development • Current Primary, Secondary, and Tertiary Employment: – Primary: Petrochemical, Mining – Secondary: Automobile Manufacturing, Electronics Assembly – Tertiary: Telecommunications, Retail, Utilities, Wholesale Brazil’s level of Development is the best possible for Manufacturing, because of the rapidly industrializing economy and population. This level of development also houses a great number of skilled workers. Site Factors: Land and Labor Site Factors: Resources • Proximity to Inputs: Some inputs (metal computer casings) can be produced in Brazil. Others (Silicon-based processing chips) may have to be imported. • Bulk-Gaining Industry: Electronics Manufacturing is a bulk-gaining industry, meaning the finished product has more mass than the inputs required to make it. • Inputs: Situation Factors • Brazil is full of many major markets like Brasilia and Sao Paulo. Except for the region known as Amazonia, there are many major cities. All in-country distribution could be done inexpensively by truck due to the relatively high concentration of large markets concentrated in almost every Brazilian state. Infrastructure: Transportation • Brazil’s Infrastructure has been relatively slow to develop due to opposition to reform projects from private parties. In general, each state has only one major airport with most air traffic controlled by one of two companies. Brazil has a very elaborate highway system, and most large market centers are located near large ports. Other nations in Latin America, such as Bolivia and Paraguay, however, lag behind Brazil in the efficiency of their physical infrastructure. Infrastructure: Communication • Brazil is Central America’s largest Information Technology and Communications market with 45% of Latin America’s total IT investment. Most major communications systems are centered around large cities and industrial areas. The rural areas of the nation have received little Communications distribution, but in areas of strong markets, communications are very well in place. Compared with its’ neighbor Bolivia, Brazil’s communication infrastructure is very well developed. Taxes Social Stability • Human Rights: Brazil Boasts one of Latin America’s most progressive and socially stable economies. After the country became democratically ruled in 1984, the country has flourished and many human rights bills have been passed. • Corruption: Like all Latin American nations, Brazil’s government is full of corruption. However, Brazil is one of the least corrupt nations in Latin America. • Brazil’s government is a Democracy where there are open elections held every four years. The main political opposition is seen between the various parties and some wealthy private sector investors. Conclusion • Brazil is a very large and quickly growing economy. There are many large markets and resources within relatively ease access by the nation’s expansive highway network. The nation lacks a highly developed transportation infrastructure and for international exports, products can take up to 39 days to clear international customs. For products such as Apple’s, this would not be of great concern. Brazil has a large, highly educated population with a thorough communications infrastructure in place in urban areas. All of these positive aspects outweigh the drawbacks, making Brazil an excellent location for a new Apple production facility.