Negócios Internacionais: Internacionalização de Empresas Brasileiras (International Business)

Good morning, everyone! My name is Expedito Silva; I’m specialist in Business Administration, Besides that experiences as a teacher, I also got other experiences in Financial Institutions and Logistics fields. I spent a decade on each one of those fields The last three years I have worked as Project Manager of Apex-Brasil, the Brazilian Government official agency for foreign trade promotion. Well, I will be based in this set of experiences for our class today. I will talk about a subject that isn’t usual for all of you, but is so common for your life. It’s about this question that I wanna all of you to answer, at end of our class: “What’s the relation between Internationalization and your life?” I will use it as a support for realize all importance of this subject and you will follow me. A conceptual source that I will use is, A concept several times mentioned, few of you known, but, it´s less complicated than you think: Macroeconomy! Even those who never ever studied Macroeconomy, don’t need be worried about it. As illustrated here, It’s something that is very connected. Not only in terms of one country, but in terms of world, too. However, it’s also more simple than its own name suggests. So, I will use this scheme here. Becouse it’´s Very familiar for all of you: A tube’s set with water taps. From this illustration we will explain how the Macroeconomy works. A basic concept that we will need to understand
, before we go ahead. Here, above, we have all companies creating jobs and paying salaries for all society
. Bellow, we have all families receiving salaries and spending it incames buying goods. It provides refeeding to companies and creates a wealth circle, keeping all economy working. There is other factor, here that is very important understand. Technicians call it: “Leaks”. In fact: Taxes paid by companies and people, Savings, when incomes are saved instead of being spent buying goods. All that´s what we call: “External leaks”. However, in fact, that’s not bad, as we will see. Because, there is another technical expression called by economists: “Injections”. It’s the public spending Public spendings comes back to the system as payroll of public workers and all government spendings. The way as the government manages it spendings is called: “Fiscal Policy”. In the opposite side we have the: “Monetary Policy”, regulating the interest rates. It determines the cost of savings made by society. It savings is offered to the companies to invest and increase the production. So, if all of you understood what is Macroeconomic basic model
, then, We are ready to move to the next point: The understanding about internationalization of Brazilian companies. We will starting with the “national conjuncture”
. The current scenario of Brazilian economy
. [At first] We have the overvalued Real [Brazilian currency]. So, every night all of you watch the TV News anchor speaking: “The Real still overvalued against the Dollar
“. How it affects your life: Doctor, Lawyer, Engineer? The overvalued Real makes Brazilian goods overvalued and Brazilian companies less competitives abroad. In consequence of that – retaking the previous concept of Macroeconomy that we saw before – The generation incomes, jobs and salaries will be affected. As well as all incomes of the same society will be affected. So, each person who would pay the Doctor bill, who pays the lawyer, who contracts a teacher, who contracts a engineer
, As well as companies that could contract all those professionals, Will be also affected by the same question that affects your lives. Followed by the level of “Domestic Savings”, that isn’t enough and are expensive, As we saw before, savings are one source for companies reinvesting back to society, If savings are not enough as well as are expensive, So, companies’ health will be also affected. Doctor. Consequently, your financial health will be affected, too. Consequently, it companies’ health will be affected, Doctor, your financial health will be affected, too. As well as financial health of Lawyers, Engineers, etc. All that are intrinsically imbricated. So, when Obama sneezes… we also get flu. In sum, it brings to us a negative national conjuncture, in terms of international competitiveness. It’s added by another questions that affects the competitiveness. All of you also usually watch at night, the Tv News anchor talking about: “Elevated taxes”. If taxes are high I will need put it into my prices
. Consequently, it will generate an international competitiveness problem
, too. The same problem happens if the qualified workforce isn’t enough
. If I haven’t an enough offer of qualified workforce, I will need improve salaries in order to attract more workers. Consequently, my price will be affected by this workforce’s costs. And my competitiveness will be affected, too
. All that is added by our deficient infrastructure. All this set of factors bring to us a low level of international competitiveness. Now, lets take a look to “international conjuncture”. Here, we have one breaking news from the Financial Times: “Emerging markets point the way forward.” “Emerging markets would pick up stack as their US and European counterparts hunkered down.” In other words, the international markets have been receptive for Brazilian companies. The country is in evidence
. It’s favorable from the marketing´s point of view. It’s publicity; Free advertisement! It means that the environment is friendly for Brazilian companies abroad. In other words, the international conjuncture is positive for us. Here, we have other factors that are favorable for internationalization. Our problem of not enough level and expensive Domestics Savings. Abroad, savings are plenty and cheap. It, added by other internal weakness: overvalued Brazilian currency, Becomes a strong point to us. Because foreign assets, Such as: facilities, factory’ plants, are undervalued for companies that has revenues in Brazilian currency. Consequently, it also makes the international conjuncture favorable to us. Because, we can buy foreign assets undervalued in foreign currencies. In others hands, our low competitiveness, foreign markets barriers against importation can be seen as an favorable international business environment. All that are favorable good reasons for operating directly into foreign target-markets. It was what old multinational companies have done, since the international business environment became the same that we are facing, now. Foreign companies have gone beyond borders, to reach foreign target-markets. from this particular conjuncture, all of you will finding other national bottleneck resolved, too. Well, not exactly resolved in all, but, at least attenuated and friendly, because, it is fact that abroad there is an higher qualified workforce offer. Because, there is a high level of unemployment abroad. Well, in a general way, it was what I wanna to emphasize for all of you. I usually repeat a Brazilian popular aphorism: “If you stand, the beast will eating you. If you run, the beast will catch you up.” If you stand, the beast will eating you. Because, the immobility caused by the comfort of a big internal market, might seen as positive, but isn’t. However, if you don’t plan it before go, the beast could eat you, too.

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