Brazil’s Economy Invites Foreign Investors

According to surveys conducted a few months ago, Brazil’s economy has grown at a faster pace in the last three years. But the country’s investment sector experiences sluggishness time and again. This South-American country is introducing reforms to attract European and American investors, according to Alexandre Petry, the head of the investment unit at Apex-Brazil. With the flow of foreign investment the rising demand of translators and translation service companies is noticeable.

Traditionally, the European countries and mainly EU have invested in Brazil. But in the recent years, the Chinese and North American companies have started taking interest in bringing investment to the country. The South American region has been the main focus of the Chinese companies for getting raw materials to use in their industries. And the region has reaped great economic benefits as a result. The trade between China and Latin American countries totaled to about only a $10 billion dollars in 2010-11, whereas now it has risen to $241 billion. This clearly shows the interest of the second leading nation of the world in the region. This creates a need for Spanish and Chinese translators in the region. China has become the main lender to Latin America. According to an estimate, only in the year 2010, Chinese government sanctioned $37 billion dollars for the region. A big percentage of the loan went to Venezuela, Brazil, Ecuador and Argentina. But these loans will be repaid in the form of long-term commodity sales to China, which is a big compromise on the region’s natural resources. This exploitation of the natural resources of the region will definitely bring environmental degradation, but as things are, it cannot be helped.

Some European companies have heavily been investing in the automobile industry, banking sector,  telecommunication services and the petroleum industry of the region. And these companies are in there for a long haul. The country needs continuous investments in the above mentioned sectors. The recent investments in Brazil have undoubtedly helped the country to battle against the worst economic and financial crisis the Western world has experienced lately. Economic development   in the Latin American region, specially of Brazil has resulted in opportunities for translation agencies which are reaping the benefits of this newly rising investment tide.

Although a recent sluggishness has been noticed by the financial experts of Brazil, they are of the view that there are some sectors and niches which are experiencing an economic boom as well. For example, the Brazilian government has come up with a concessions program in the infrastructure and logistics sector which is going to include the railways, roads, ports and airports. Naturally, its going to cost a lot to the government and a lot of investment would be needed consequentially. All is not amiss for investment in the country and we can surely see a light at the end of the tunnel. New opportunities are opening up and once the country overcomes its temporary economic stagnation, Brazil would again become a goldmine for foreign investors. Apart from the foreign investors, it is a great opportunity for the translation service companies to reap the benefits of a rising demand for Portuguese translation services. Setting up small regional offices can increase access to translators and the foreign companies will feel no reluctance when dealing with a translation service company that has a regional office in the country as well.

How Environmental Factors Influence International Communications Strategies

Various environmental factors can influence international communications strategies.  Translation services workers should be as aware of economic, social/cultural and political/legal influences in foreign markets as they are of those in their native or domestic ones.

A nation’s size, per capital income and stage of economic development determine its feasibility as a candidate for international business expansion.  Nations with low per capita incomes may be poor markets for Boston Translation Services but good markets for agricultural hand tools.  These nations cannot afford the technical equipment an industrialized society needs.  Wealthier countries may be prime markets for the products of many US industries, particularly those involving consumer goods and advanced industrial products.

Another economic factor that translation companies must consider is a country’s infrastructure.  Infrastructure refers to a nation’s communication systems (television, radio, print media, telephone service) and energy facilities (power plants, gas and electric utilities).  An inadequate infrastructure may constrain business plans to manufacture, advertise and distribute products and services.  Infrastructure must be evaluated even when considering an international venture in an industrialized nation.  For example, to ensure investment and access to oil producing fields along the west coast of Africa, the governments of several countries hired construction firms to build new roads, housing compounds, power production plants and cellular communication networks for the thousands of new workers and businesses that would be needed to work the wells and move the raw petroleum crude to a port for export.

Changes in exchange rates can also complicate international business that in turn affects the language translation business.  An exchange rate is the price of one nation’s currency in terms of other countries’ currencies; in 1985, for example, $1 could be exchanged for 3.5 German Deutschmarks or about 240 Japanese Yen.  During this period, West German and Japanese consumers and industrial buyers considered Houston Translation Services relatively expensive, while American consumers thought the services provided by foreign translation services firms were attractively priced.  Overseas sales of many U.S. exporters suffered during this period; some firms even withdrew from certain export markets due to lack of sales and profits.  By 1988, the dollar had declined significantly against these and other currencies in the face of huge balance of trade deficits ad world concerns of a possible recession.