Brazil cost

Brazil cost (Portuguese: Custo Brasil [ˈkustu bɾɐˈziw]) refers to the increased operational costs associated with doing business in Brazil,[1] making Brazilian goods and services more expensive compared to other countries.[2] There are several factors that contribute to the extra cost, including:

• High levels of public deficits;[3]
• The economy divided into cartels;[4]
• Inefficiency of public services;[5]
• Maintenance of high real interest rates;[6]
• Exaggerated net interest spread of financial institutions (among the highest in the world);[7]
• Excessive bureaucracy for importing and exporting, creating difficulties for foreign trade;[6]
• Low education levels and lack of qualified labour;[8]
• Excessive layers of bureaucracy (red tape), e.g., starting a company in Brazil takes at least 120 days;[9][10]
• High levels of corruption within the public sector;[9]
• High tax burden;[11]
• Expensive labour costs;[12]
• High social security costs;[13]
• Complex and inefficient fiscal legislation;[6]
• Economic instability;[9]
• High electricity cost;[14][6]
• Legal uncertainty;[15]
• High interest rates;[16][6]
• High crime rate, which adds extra security costs;[2]
• Underdeveloped infrastructure, including a deteriorated network for domestic shipping by rail, highway and coastal navigation*.[1][6]

*: In 2007 transport costs consumed 13% of GDP, 5% more than in the United States.[17] The high transport costs are exacerbated by the scattering of industry over Brazil's vast territory.[18]