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In Brazil taxes do not "penalize" countries, products or companies. Right in the middle of the Amazon region there is a development zone where the majority of
by juusto 13y ago
In Brazil taxes do not "penalize" countries, products or companies.
Right in the middle of the Amazon region there is a development zone where the majority of the electronics are made, in the country, by multinationals. It is called a Zona Franca.
When built in the country the import taxes, which represent the majority of the cost for imports such as electronics, these taxes are removed and make the good much cheaper.
It is the same with Xbox and PS4 in Brazil. An Xbox is 4 times cheaper than a PS4. If Brazil would be against USA or it's companies then it would be the reverse.
Hope I helped.
ps. Many people in country complain about the taxes but forget that when companies move their industries to Brazil, jobs, money and know-how stay there too improving the competitiveness. Sadly the vast majority of the population will look the price tag and complain without knowing the implications behind.
- danmaz74 13y agoFor your ps: on the other hand, just think what would happen if every country did the same thing.
- oscargrouch 13y agoNot everybody could do it.. only countries with big markets could have this privilege.. Small contries would get simply ignored by the industries, since its too much trouble.. So it would get reduced to: China, Russia, Brazil, US, Japan.. and if managed in block: Europa.. This policy from Brazil is not a bad one if you think that the only other possibility left for industrial growth(technology transfer) would be one of the cheap labor.. like what happened in China, South Korea and the Asian Tigers..
- ericd 13y agoTariffs definitely do penalize foreign countries/products/companies. Not to say they're a bad idea for Brazil and other emerging countries with large markets, but if everyone had such harsh tariffs, free trade and progress in general would suffer.
- riffraff 13y agothanks, it was very interesting information.