Brazil is becoming an increasingly important trading partner of the Netherlands. Exports to the South American country compared to all exports are still relatively low, but they are increasing rapidly. This is partly due to the growth of Brazil. Anyone trading with Brazil would do well to take into account any exchange rate fluctuations of the Brazilian real against the euro. The mentality of the Brazilians is also different. Read all about it in this article. More and more goods are being exported to Brazil. The country is becoming an important trading partner of Europe. At the same time, exports still make up a relatively small part of all Dutch exports. In 2010, this amounted to half a percent of total Dutch exports. There was a growth of 62 percent compared to a year earlier. The main goods exported were gas oil, pumps and chemical production. Total exports had a value of approximately 1.8 billion euros.
Export to Brazil
Brazil, together with Russia, India and China, is referred to as BRIC countries. This is an abbreviation of the first letter of the different countries. The term is used to describe large emerging economies that are rapidly emerging. Brazil has been gaining an important place on the global economic stage since the beginning of the 21st century. The country is now the largest economy in the world and the sixth largest economy in the world. For many years, Brazil was mainly known for its poverty. The country had large slums where there was a lot of poverty. There was a lot of corruption and many companies were state owned. As a result, they were not governed effectively. In 2002, the socialist Lula was elected as the new president. The financial markets were frightened because they had little confidence in a socialist in power. However, he turned out to do exceptionally well. He privatized a large part of the government companies.
The rate of the Brazilian real
It is important to take the rate of the Brazilian real into account when trading with Brazil. That is the currency of Brazil. When you buy something in Brazil you probably pay in reals. There may be a delay between concluding the purchase and payment. If the exchange rate of the real increases compared to the euro, you will lose more money than you may have originally thought. It could even be that your purchase is not beneficial at all. It is also possible the other way around. The real becomes less valuable and you actually make more profit. It may be possible to take out insurance to cover yourself against losses due to price drops. Another option is to pay as quickly as possible or exchange your money into reals in the meantime.
How does trading with Brazilians work?
Anyone who wants to trade would be wise to take a number of things into account. For example, it is important to know that most Brazilians do not speak English. The national language is Portuguese. So you would do well to learn this language or find someone who speaks this language. Furthermore, Brazilians attach great importance to personal contact. That is important in building a good business relationship. This takes some getting used to for many Dutch people, because they are naturally quite businesslike. A final characteristic of the Brazilian is that they are often short-term oriented. This often contrasts with the Dutch mentality, which often acts with a view to the long term.