6. The Basics
BR 2012 MX
198m Pop. 110m
8,5m km2 Area 2.0m km2
$12670/
12820
GDP Per
Capita/PPP
$10420/
18760
0.9 a/a Growth 3.7 a/a
78.5 Mobile p/100 69.4
127
Ease of
Business
51
Cachaca Drink Tequila
Futbol Sport Futbol
Cancun Beach Rio
7. • Language & history (Portugal vs Spain)
• Formal vs. informal
• Psychological and physical distance
• Superficial knowledge (not deep)
Similar yet Different
8.
9. •Growth, democracy and inclusion
(new middle class)
• Mexico – Regaining competiveness, exports more
manufactures than rest of Latin America
• Brazil – Diversification and resources
Positives
10. • Mexico – Dependent on US, “So far from God
and so close to the USA”
• Brazil – Underweight in exports especially value
added, declining industrial productivity, “Brazil
cost” & “God is Brazilian” so everything is OK
Some Concerns
11. • Mexico – Energy - decline in PEMEX production
and lack of new discoveries
• Brazil – Energy - Difficulty in fulfilling the promise
of the Pre-Salt deep water finds; hydroelectric
• Both countries – Sustainability of models
Concerns
12. • The Dragon in the Room
• China importer of commodities & exporter of
manufactured goods
• How to compete?
Concern
s
13. • Relatively insignificant, below potential (2%)
• 2012 First time 10 billion total
• 65% of total is automobile industry
• California-Mexico: 62 billion in 2012
• California-Brazil: Only 4 billion 2012
Trade Brazil Mexico - 2012