Export barriers in the world: the case of Brazil
All countries in the world exported US$ 18.5 trillion in 2015 and Brazil exported US$ 191.1 billion, or the equivalent of 1.03% of world trade.
Brazil is the 9th largest economy in the world, but it ranks 23rd among exporting countries.
Brazil has more than 10 million companies, but only 23,548 managed to export in 2015, the equivalent of close to 0.23%.
With so many opportunities we see in the world, why does Brazil participate so little in world trade? Are we a recognized country of entrepreneurs who overcome daily difficulties to undertake and why do not we have the same impetus to undertake globally?
Many are the standardized and easy answers, such as blaming the exchange rate or blaming the “Brazil cost”. These factors have some relevance, no doubt, but this is not true when we see the continuum of Brazil’s lack of representation in world trade.
We can then analyze which are the main factors that hinder or impede the global vein of Brazilian entrepreneurs? We can. And we can focus these difficulties on three major export barriers to be overcome.
The Export Barriers
The third barrier – starting with the third barrier is the lack of greater use of logistics as a selling factor. It is not enough for the company to sell. She has to know how to deliver and deliver where her client wants to receive. The globalized world is preferring to receive what they buy at the door of their store or warehouse and no longer at the seller’s factory. We have to learn and get used to exploring the logistics of the door-to-door.
The second barrier – is information to know when and where the entrepreneur can reach out to potential clients. The world works permanently in the supply-demand function, because countries never produce everything they consume. The “law of comparative advantage” also shows that some countries are far better – and at lower costs – in producing one commodity than others. Therefore, the entrepreneur has to know how to seek this information. And the Brazilian government is failing to seek this information to supply its entrepreneurs, even because with eleven organs working in the same field evidently the coordination is the first victim!
The first barrier – and more importantly – is the lack of knowledge of international trade routines and procedures, from the calculation of prices and the issuance of Profoma Invoice, until delivery to the final destination. It is a phase of procedures with many actions of international trade and logistics, legal and accounting actions and economic and financial actions. Nothing that is so complicated as to be impeding, but needs a minimum knowledge and orientation so that the operation avoids errors that could be foreseen. In this sense it is good for the entrepreneur to follow a road map, which can be obtained from websites of SEBRAE, Banco do Brasil, APEX and other institutions, in the case of Brazil, for example, or use international business platforms to make international business such as the Intradebook.
Alfredo Kleper Lavor