The role of Brazil in the modern international cooperation

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Brazil is the most economically developed country in Latin America. Brazil's economy is characterized by modern development of the agricultural and industrial production, the modern mining industry and massive the services sector. By its own production in the country is provided to 90 % of the domestic demand for manufactured goods. Demand on machinery and equipment is met by more than 80 %. A number of competitive Brazilian goods (aircraft, buses, cars, trucks, tractors, road-building machinery, power equipment, electrical and electronic equipment, etc.) are supplied to the world market. One of the specific features of the Brazilian economy in recent years is the rapid development of its world economic relations.

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Moscow Aviation Institute  
(National Research University) 
Engineering-Economic Institute

 

 

CHAIR 501 
 
Coursework on discipline

 

«Comparative analysis of Brazil and Norway to identify business opportunities in Russia»

 

 

 

 

 

 

 

 

Work done by students

Danilina L., Lazukina A.

Group 5O-210B

 

 

 

 

 

 

Оглавление

 

 

 

Introduction

1. The role of Brazil in the modern international cooperation

Brazil is the most economically developed country in Latin America. Brazil's economy is characterized by modern development of the agricultural and industrial production, the modern mining industry and massive the services sector. By its own production in the country is provided to 90 % of the domestic demand for manufactured goods. Demand on machinery and equipment is met by more than 80 %. A number of competitive Brazilian goods (aircraft, buses, cars, trucks, tractors, road-building machinery, power equipment, electrical and electronic equipment, etc.) are supplied to the world market. One of the specific features of the Brazilian economy in recent years is the rapid development of its world economic relations. Leading role plays foreign trade. Significant changes have occurred in the foreign trade, were related with a change in the development model of the Brazilian economy. Dynamics and structure of the Brazilian foreign trade in the 90s was largely determined by government policies aimed at liberalizing foreign trade (including the abolition of import licenses and the decrease in the average rate of customs duty is more than three times) and the acceleration of the integration process of MERCOSUR.

Brazil is a member of several international economic organizations. The country is a member of the WTO, MERCOSUR, UNASUR, G8 +5, G20 and the Cairns Group. In addition, Brazil is playing an active role in the BRICS and IBASE (India, Brazil and South Africa). 
Currently, according to the UN classification, Brazil is ranked among the "newly industrialized countries". In addition, it is also among the countries with "emerging" markets.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2. The level of foreign economic relations of Brazil with Russia

In recent years, Brazil has firmly holds the first place in Russia's trade with Latin America. Brazil is also among the major partners of Russia in the world. Brazil considers Russia more as a market for agricultural products. Brazil was the first country in Latin America, with which Russia established diplomatic relations, due to the fact that Brazil was then a monarchy.

 

Russia supplies to the Brazilian market for:

  • fertilizers
  • ethyl alcohol
  • cars
  • cameras
  • other industrial goods.

 

The basis of Brazilian imports into our country are:

 

  • agricultural and food products: coffee, sugar, cocoa beans and cocoa products
  • shoes and others.

 

In the term structure of trade turnover is expected to increase the share of high technology products, including such industries as aerospace, nuclear power, metallurgy, telecommunications and other. 
Planned expansion of investment activity at the expense of participation of Russian companies in realization of projects of construction and modernization of hydropower, nuclear power plants, Railways, laying gas and product pipelines, reconstruction of sea ports and other Brazil is also interested in joint with Russia using spaceport in Alcantara on the North of the country to launch artificial satellites.

 

Russian-Brazilian trade is characterized by:

 

  • growing positive balance in favor of Brazil.  
    Steadily increasing the volume of imports from Brazil: pork, beef, poultry meat, sugar. This led to an increase of accumulated negative for the Russian side, the balance of trade

 

  • limited nomenclature of Russian supplies, bearing the raw-material orientation 
    The base of Russian exports to Brazil being fertilizers - more than 91 %, mineral products (coal and diesel fuel) - 4 %. It should be noted the low competitiveness of Russian goods on the Brazilian market, the needs of which can be ensured by developed-output linkages TNK international.

 

  • dominated in the structure of Russian imports from Brazil of goods with a low degree of processing 
    Agricultural and food products (raw cane sugar, pork, poultry, beef, tobacco) continue to be the basis of our purchases in Brazil - their share is about 87%.

 

  • growing negative for Russia's trade balance for the group of machine-technical products

 

  • continued decline in the share of export of Russian machine-technical products

 

  • high share of American and European intermediaries, including financial institutions when implementing the Russian export operations (delivery of fertilizers and mineral products).

3. International companies selected country on the Russian market

Activities of multinational companies in Brazil in the Russian Federation.

Current investment projects with the participation of the Brazilian capital on the territory of Russia are:

 

 

Plant for the production of hamburgers «Marr Russia»

Plant on production of refrigerating equipment Metalfrio Solutions

Region

Moscow region, Odintsovsky district

Kaliningrad region, Bagrationovsky district, vill. Nivenskoe

Industry

Food production

Industrial equipment

Project stage

Built

Built

A brief description of the market

Supply of semi-finished products for the McDonald and Russia

Supply racks refrigerators and horizontal freezers for sales networks

Description of the project

processing capacity of 25 thousand tons of meat per year, 400 jobs created, estimated revenue of 40 million euros per year

Estimated revenue to $ 50 million. The USA in a year

Link (Web):

www.marr.ru

www.metalfrio.com.br


 

 

Marr Russia

 

MARR RUSSIA is one of the leaders in the supply of products for the catering market over 12 years. Today MARR not just a distributor, but also the largest manufacturer and supplier of meat products to restaurants. 
 
The range of more than 1800 names of various food products: meat and poultry, fish and seafood, groceries, dairy products and cheeses, various vegetable oils, fruit and vegetables, confectionery and bakery products, etc. 
 
The current enterprise quality control system provides constant control over the observance of all norms and standards related to food at all stages: acceptance, storage and shipment of products. 
 
Own motor-vehicle pool totals more than 80 vehicles equipped with temperature control systems. Deliveries are made to more than 3,500 customers in different cities of Russia and CIS countries. 
 
Company strives for mutually beneficial cooperation with our clients and understands how important it is for the professionals to receive useful information, to know more about the products and be sure in their quality. On the specially equipped kitchen MARR known chef from Europe, America and Russia hold regular master classes and presentations. And company’s specialists undergo continuous training to improve the quality of work. 
 
The company MARR regularly participates in charity events «Charitable Fund, Ronald McDonald», «Embassy of Italy in Russia, as well as in the organization of food packages for veterans and pensioners. 
The company is expanding and has branches in St. Petersburg, Rostov-on-don and Novosibirsk.

 

Metalfrio Solutions

 

Metalfrio Solutions operates in the plug-in commercial refrigeration market. Its leadership, production capacity, innovation, commitment and dependability have helped it build a strong partner relationship with customers for nearly fifty years.

 

It is a global company that combines expertise, technology and flexibility, always anticipating its customers and its customers’ customers’ needs. Metalfrio Solutions’ customers include the leading international and regional brands of beverages, ice cream, food and retail businesses all benefiting from the customized solutions that make a difference in displaying the most varied products at the point of sale.

 

Metalfrio Solutions comprises several commercial refrigeration brands – Metalfrio, Derby, Caravell and Klimasan – to meet its customers’ various needs and markets. With the most complete portfolio of commercial refrigeration products, Metalfrio Solutions is currently one of the largest refrigeration companies in the world and continues to grow as a result of a strong expansion program.

 

Metalfrio provides much more than just refrigeration products. It offers merchandising tools for the point of sale, as well as the best business strategy for its customers through the customization of complete solutions from product concept development to production, distribution and postsale services. By providing these solutions the Company has built a solid commitment to its customers by following their growth and meeting their needs worldwide.

 

With a production capacity of 1.5 million units per year, the company operates on nearly every continent, with 4 strategically located production facilities – Brazil, Mexico, Turkey and Russia. These locations produce state-of-the-art technology equipment with global distribution reaching more than 80 countries.

 

You can rely on Metalfrio Solutions to make a difference at the point of sale, showcasing your products and your brand with the best display always.

 

Production and distribution.

• Production capacity of 1.5 million units per year. 
• Strategic positioning - 4 production facilities located in Mexico, Turkey, Russia and Brazil 
• Global distribution capacity: 220 distributors in over 80 countries 
 
Reliability 
• Metalfrio Solutions has built a reputation for reliability for the past 50 years through constant research and development of cutting edge solutions 
• Its respect for the environment is a key issue: Metalfrio was the first company to have a fully eco-compliant production facility in Latin America 
 
Focus on the Client 
• Complete solutions: from product concept development to production, distribution and post-sale services 
• Deep understanding of market needs and the business of its customers 
• Delivery of fast and reliable solutions 
• Innovations result in customized products for each customer’s needs 
• Commitment to our customers: quality, timeliness and competitiveness

 
 
Leadership 
• Leader in the Latin American market 
• One of the world’s largest producers of plug-in commercial refrigerators 
• Global structure to assist customers with local growth strategies 
• Innovative products that combine technology, quality and reliability 
 
Products 
• Complete product portfolio: hundreds of models of upright, horizontal and custom-made equipment 
• The largest commercial refrigerator facility in operation in Latin America 
• Four different product brands with a collection of models to cover the most diverse client needs

 

Metalfrio Solutions is a global company, providing solutions that cater to the regional needs of its customers. All around the world, its expertise and tradition follows these customers in their expansion efforts, since the Company relies on an infrastructure that allows it to understand and meet each market’s needs, providing fully customized solutions. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4.  The role of Norway in the modern international cooperation

The economy of Norway is a developed mixed economy with heavy state-ownership in strategic areas of the economy. Although sensitive to global business cycles, the economy of Norway has shown robust growth since the start of the industrial era. Shipping has long been a support of Norway's export sector, but much of Norway's economic growth has been fueled by an abundance of natural resources, including petroleum exploration and production, hydroelectric power, and fisheries. Agriculture and traditional heavy manufacturing have suffered relative decline compared to services and oil-related industries, and the public sector is among the largest in the world as a percentage of the overall gross domestic product. The country has a very high standard of living compared with other European countries, and a strongly integrated welfare system. Norway's modern manufacturing and welfare system rely on a financial reserve produced by exploitation of natural resources, particularly North Sea oil.

 

The Norwegian economy is a prosperous mixed economy, with a vibrant private sector, a large state sector, and an extensive social safety net. The government controls key areas, such as the vital petroleum sector, through extensive regulation and large-scale state-majority-owned enterprises. The country is richly endowed with natural resources - petroleum, hydropower, fish, forests, and minerals - and is highly dependent on the petroleum sector, which accounts for the largest portion of export revenue and about 20% of government revenue. Norway is the world's third-largest natural gas exporter; and seventh largest oil exporter, making one of its largest offshore oil finds in 2011. Norway opted to stay out of the EU during a referendum in November 1994; nonetheless, as a member of the European Economic Area, it contributes sizably to the EU budget. In anticipation of eventual declines in oil and gas production, Norway saves state revenue from the petroleum sector in the world's second largest sovereign wealth fund, valued at over $700 billion in January 2013 and uses the fund''s return to help finance public expenses. After solid GDP growth in 2004-07, the economy slowed in 2008, and contracted in 2009, before returning to positive growth in 2010-12, however, the government budget is set to remain in surplus.

 

 

 

 

 

 

 

 

 

 

 

5.  The level of foreign economic relations between Norway and Russia

For Norway, the North-West region of Russia traditionally prominent place in bilateral cooperation on a wide range of areas. Most investment projects with Norwegian capital is concentrated in the Russian Northwest. A survey in late 2011 by the Norwegian company SIVA survey of 32 foreign companies (of which 22 - Norwegian), leading its activities in the Murmansk region , 45.2 % of respondents believe that the results of their business activities in the region in 2011 were much better than in 2010 . And only 29 % reported that their companies have reduced their activity.With regard to the investment attractiveness of the North- West region as a whole, 28.1 % of respondents believe that, compared to previous years the investment climate is improved, however, almost 60 % believe that there was no improvement . Despite a number of "traditional" Russian for problems such as corruption, etc. , the companies intend to maintain its position in the region.

 

Murmansk region

For the first nine months of 2011 from Norway to invested 17.8 million U.S. dollars, which is 9 times higher than the same period of 2010. In the structure of investments made in 2011, direct investment up 99 %. 11-13 November 2011 in the settlement Nickel Days took the Murmansk region of the Russian- Norwegian border cooperation , with the support of the Ministry of Regional Development of the Russian Federation and the Government of the Murmansk region. With financial support from the Norwegian Barents Secretariat in 2011 in the Murmansk region began the project : " Development Plan manufacture of products for the aviation industry ," the company JSC " BR Electronics " and " Customs Project , Phase 2 ", aimed at improving the efficiency of on point skip "Borisoglebsk - Storskog ." The Government of the Murmansk region to support these projects allocated from the regional budget subsidies in the amount of 500 000 rubles.

 

Arkhangelsk region 
During the first 9 months of 2011, the foreign trade turnover of the Arkhangelsk region and Norway amounted to 4.61 million ( 0.11 % of total turnover in the region ) . Of which exports to Norway - 0.02 million U.S. dollars , import - 4.59 million U.S. dollars. Most relevant areas of cooperation in the sphere of education and science include: development and implementation of international educational programs and research projects that contribute to the integration of regional universities in the Bologna process , the development of distance learning , expansion of student and teacher mobility , optimizing export of educational services , the development of information technology.Regular partners Arkhangelsk universities are: University of Tromsø , Bodø Regional University , the University of Stavanger , Institute of Public Health , Oslo University College Finnmark University College g.Harstada , Norwegian University of Science and Technology Trondheim , College g.Narvika etc. Among the successful projects of cooperation can be distinguished master's programs in the implementation of management training and engineers in the oil and gas industry , as well as experts in the field of environmental engineering , implemented within the framework of the Memorandum of Cooperation " Statoil " with the regional government .The development of partnerships in education promotes activity Norwegian- Pomeranian University Center Information Center and the Norwegian Barents Secretariat , created on the basis of PSU named . University, and contributing to the implementation of joint projects , organization of student internships in Norway, conducting courses in Norwegian language and summer language schools in Norway.

 

St. Petersburg 
Imports from Norway to St. Petersburg traditionally make up most of the supply of fishery products . Norway is a leading supplier of frozen fish on the St. Petersburg market share of these supplies in recent years, ranging from 70 to 90% of total imports from Norway. Promising areas of cooperation in St. Petersburg and Norway remain cooperation in shipbuilding and ship repair and other projects.

In May 1998, in St. Petersburg works Norwegian university center is a public institution , representing the University of Tromso, Trondheim , Bergen and Oslo. The main objective of the center is to strengthen scientific ties between Norway and Russia , to create conditions for Norwegian scientists and graduate students and the implementation of joint programs.

Established and developing contacts with St. Petersburg universities. The main partner of the center by the scientific institutions is Saint-Petersburg State University , conducted the most active cooperation with the Center for Russian language and culture , as well as eastern and philological faculties . In conjunction with the Consulate General of Norway Center spends evenings Norwegian culture , Norwegian students studying Russian language.

17 years successfully developing cooperation in the field of business education at Baltic State Technical University with the University of Bodø ( Nordland province ).

 

Leningrad region 
Over the past year mainly exported to the following products : pneumatic tires, of rubber , fuel wood , timber. In imports were products of these groups , " electrical machinery , equipment and parts ", " industrial equipment , its parts ." In 2011, in the framework of the agreement on the program selection of business partners of Norwegian and Russian companies signed in 2009 , continued to search for partners for Norwegian companies among the enterprises of the Leningrad region and St. Petersburg . The purpose of this project is to assist in the development of cooperation between enterprises of the two countries , assistance in output Norwegian and Russian companies on the Russian and Norwegian markets. At present, this work continues.

 

Republic of Karelia 
Norway is currently not included in the number of significant trade partners of the Republic of Karelia, its share in the foreign trade of the Republic does not exceed 1.5 %. During the first 9 months of 2011, exports to Norway increased by 16.2% and amounted to $ 12.9 million in export commodity nomenclature prevailed delivery of fish and seafood , their share was 82.6% , an increase of 19% . In previous years, played a significant role also exports such as ferrous and nonferrous metals, machinery , iron ore pellets .According Kareliastat , the republic among the organizations with foreign capital , producing goods and providing services , 1.4% or 2 companies with investors from Norway. Norwegian capital accumulated in the economy of the Republic of Karelia , directed from the country , less than 1% of total accumulated foreign capital of the republic. Cooperation between Karelia and Norway developed in several directions: As part of the Barents cooperation Karelia actively interacts with three Norwegian provinces - Troms , Finnmark and Nordland . Subject cooperation with Norwegian provinces within BEAR related to health, environment , the study of natural and cultural heritage , support for indigenous peoples. The main form of cooperation are traditionally small projects funded by the Norwegian Barents Secretariat ( Kirkenes ) . Petrozavodsk State University has extensive links with the University of Tromsø . In 2011, continued student exchanges with funding programs of the Ministry of Education of Norway , the Norwegian Barents Secretariat , the European student exchange programs . Under the chairmanship of Petrozavodsk State University is actively working within the framework of the Working Group on Higher Education and Research BEAR. Traditionally, active contacts between the organizations representing the interests of indigenous peoples. 26-27 September 2011 in Petrozavodsk , the regular meeting of the Working Group on Indigenous Populations of the Barents Region to discuss issues of cooperation in this field , as well as activities planned to take place in 2011-2012.

Vologda region 
The main products of mutual interest are the ferrous metals, it is on them annually accounts for more than 90% of exports and imports.Foreign trade operations in this area of the Vologda region carries Metallurgical Company "Severstal". In September 2010, "Severstal" has acquired 21.7 % stake in the Norwegian company Intex Resources ASA (mining) for U.S. $ 13 million.

Until the mid- 2000s, the region has actively cooperated with Norway in the forest industry , which is one of the leading consumers of Vologda timber , sawlogs, balances , log cabins saunas, MDF . Norwegian companies have invested in logging . The company " Telemark Wood Company" in 1993 established a branch in Vologda and acted as a mediator for a number of Russian enterprises in the export processing enterprises directly roundwood . The company also assisted in restoring the twinning between the town of Skien (Norway) and Belozersky district (Vologda region).

 

Trade mission and the Government of the Vologda region worked business presentations ( business mission) in the 1st half 2012 the delegation of the area. The main focus - on the industrial park "Sheksna" (deep metal processing , construction industry , production of automotive components ) and Industrial Park "Sokol" ( woodworking , construction industry , production of soft roofing materials , furniture and accessories).In 2011 trade mission organized and participated in the activities of the delegation visits Russian regions. From 23 to 29 October 2011 a delegation of Norway administrations gg.Sankt Petersburg and Kaliningrad . The trip was please agree . Several workshops on the theme " business and communal services of major cities" (Bergen , Oslo), organized a visit to " Centre for Climate Research" (Bergen) .

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