Taxes scare foreign
investors
Research shows that taxes and Brazil cost inhibit
investments in the country.
Factors that most
inhibit foreign investments in the country continue to be the national tax
structure and the so-called Brazil cost, a concept that involves variables
that range from losses due to corruption and bureaucracy, to high domestic
interest rates. The conclusion was based on a research conducted by Simonsen
Associados that interviewed 132 companies, members of Amcham
Committees.
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Taxes are still the major
barrier to new investments in the Country
High taxes are still the major reason for executives to give
up productive investments in the country. This was one of the conclusions
from a research conducted by Amcham (American Chamber of Commerce) and
Simonsen Associados – a consulting company that coordinated the
research – with 132 companies.
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Domestic market is one of the
main factors stimulating productive investments
Research
conducted by Simonsen Associados and American Chamber of Commerce shows that
market growth and size of the economy are the factors that most influence
productive investment in Brazil.
Foreign investors prefer large
and medium size companies
As discussed during
the release of Amcham (American Chamber of Commerce) research about factors
that stimulate and inhibit investments in the country, conducted by Simonsen
Associados, foreign investments do not arrive to small cap companies,
reaching mainly mid cap and large corporations. Foreign investors look for
minimum size companies to invest in, and local small companies do not meet
this pre-requisite.
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Research: return on capital
stimulates new investments in the country
According to 132
Amcham affiliated companies interviewed in a research carried out by
Simonsen Associados, factors that most stimulate productive investments in
Brazil are domestic market growth potential and size of the economy. Results
show that the most important factor, obviously, is the return on invested
capital.
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Market potential attracts productive investments
According to a
research conducted by Simonsen Associados with 132 Amcham affiliated
companies, factors that most stimulate productive investments in Brazil are
internal market growth potential and size of the economy.
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Crime affects investment
projects
Economy-related factors weigh favorably in investment
decisions. Political factors are the ones that most de-stimulate businessmen
decisions. Among political factors, taxes, corruption and the combination of
criminality, violence, and kidnapping are the ones that most bother
executives. According to the research at Amcham (American Chamber of
Commerce) coordinated by Simonsen Associados, the importance of these
aspects in the decision-making process for new investments is growing.
Investor evaluates cost of
violence
The concern among executives about violence, corruption
and impunity grew in the past year and weighs negatively in the
decision-making process of new investments. This is one of the conclusions
from the research “The main factors that stimulate and restrain
productive investments in Brazil”, conducted by Simonsen Associados
consultants with members of Amcham (American Chamber of Commerce)
committees.
Taxes, followed by the
"Brazil cost", are the factors that lead the rank
of hindrances to new investments.
Taxes inhibits new
investments, according to research
Among the factors that most inhibit foreign investments
in Brazil, high taxes is the most eminent. According to a research conducted
by Simonsen Associados and requested by Amcham (American Chamber of
Commerce), taxes is on the top of the list of unfavorable factors to new
investments in the country.
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Research: Brazilian market estimulates new investments
According to a research conducted by Simonsen Associados
and requested by Amcham (American Chamber of Commerce), internal market
growth potential and size of the economy lead the list of factors that most
stimulate productive investments in the country.
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Taxes and Brazil cost restrain investments in the country
According to a survey conducted by Simonsen Associados
consultants team with members of Amcham (American Chamber of Commerce), in
2002 taxes and Brazil cost are the two factors that can most inhibit
productive investments in the country.
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