As the world's 10th-largest economy and one of the fastest to emerge from the global recession, Brazil is the hot market of the moment, and not just because of its famous beaches. With a stable currency; a growing, consumption-oriented middle class; and a gross domestic product expected to rise at 4 percent to 5 percent a year over the next 10 years, it's no surprise that Latin America's biggest market is attracting attention: nearly one-third of finance chiefs considering international market expansion over the next two years have set their sights on Brazil, according to the Duke University/CFO Magazine Global Business Outlook Survey.
But the promise of growth doesn't come without strings attached. Finance chiefs and other experts who have been in the market for years warn that Brazil's tax and legal systems are among the world's most convoluted. A thicket of labor laws can also ensnare unsuspecting businesses, and corruption and personal security remain much more significant concerns than in more-fully developed markets.
