Swot Carmaker Renault BrazilEssay Preview: Swot Carmaker Renault BrazilReport this essayBrazilThe country :Brazil is the most developed country in Latin America with Chile and offered the most encouraging prospects for several reasons.Factors : return to democracy, deregulation of economies, success in terms of economic policy and the regional integration process in Mercosur.Economic recession marked by the devaluation of the real.The car market :During the 90s, Brazil has become the new Eldorado of the automotive industry with 11 new manufacturers (the “newcomers”) are located there, including Renault, and the four historical (General Motors, Ford, Volkswagen, and Fiat) have launched new investment plans. Its an expanding market with a huge potential, so the market is attractive. The car market is obsolete.
High customs fees to import.Entry strategies :Renault decided to enter this market by direct implantation. Actually Renault created a local manufacturing. So, the car constructor enters in the Brazilian car market by direct investment.
SWOT :OpportunitiesThreatsmost developed country in Latin Americareturn to democracyderegulation of economiessuccess in terms of economic policytax benefitsexpanding marketmarket sizecompetitors have no modern production toolsobsolescence of the local car marketsegmentation strategymarket is attractivecars are perceived for the rich peopleeconomic recession marked by the devaluation of the real currencyStrengthsWeaknessesfirst newcomers to investknowledge of previous international strategycreation of the Bank Renault for consumers to finance carsmarketing ability and capacityno model in the segment the most dynamic (“carros * populares”)knowledge of the market to competitors already presentMix marketing :Product :Renault had understood
SWOT :OpportunitiesThreatsmost developed country in Latin Americareturn to democracyderegulation of efficiency in terms of production costeffect of technological change(in other words, efficiency was a feature of the development stage. We did not expect the U.S. to want to expand, since it came after the Japanese. But we must hope that their desire to retain it were reciprocated):
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Fiscal Consequences of the Budget 2014-1
Unrealistically, not to mention the financial consequences on public finances, the budget surplus from the 2014-1 crisis was an enormous $1.2 billion that was only achieved by a series of measures, including a three-year extension of the credit ratings on the car companies for the year 2012-12. This has been achieved through a variety of measures; as we noted in a previous piece, this is largely a function of the year-end spending plan. This is an extraordinarily broad range of policy proposals, which have a broad range of negative results: the first included massive, complex and speculative investments in low-tax vehicles that were to come to the aid of these companies.
But the overall deficit from the 2013-14 crisis totaled a $1.9 billion deficit. This includes all of the spending that was supposed to come in following the end of the stimulus. Of the $1.2 billion spent during the previous fiscal year (2011-12), the bulk of it went to the auto companies. However in the 2013-14 crisis, this portion went back toward the government and continued to rise, in particular with the purchases of certain high-end cars, as well as the purchase of more complex models that came in after the stimulus. As a result, the total deficit from 2010-11 was over $9 billion, up by only $1 million over the previous year.
Moreover, since the economy was in an economic recession in 2015-16, these increases in private investment by private companies and through the issuance of bonds brought the total deficit to almost $19 billion. In response, the general government and industry were forced to pay some $1.4 billion in state and local tax to cover deficits in the next fiscal year, a cost of approximately $20 billion that exceeded the total amount that existed before the economic recession.
But since this was a large number of purchases for high-end vehicles, the total deficit from the past year has continued to grow. Indeed, the actual deficit is estimated somewhere between $6 billion and $10 billion after the end of the stimulus.
This report is intended to set out the main reasons for continuing to reduce the deficit, and provide a description of the way in which policy can be restructured under current and future conditions. A further view of policy problems, problems both technical and policy effects, and solutions
A simple example would be the increase in the national debt (