A Case Study of Barriers to Entry that Swedish companies face in the Brazilian market

Abstract: Background Through globalization, the world has changed a lot the latest decades and given people more freedom. Free trade is part of globalization and spreads prosperity and wealth. Sweden is a small and international economy and Brazil is a large and growing economy. More establishments of Swedish companies in the Brazilian market would benefit both Brazil and Sweden in many ways. Purpose The purpose of this study is to create an understanding of the barriers to entry that Swedish companies can face when they choose to establish themselves in the Brazilian market. Method This case study is deductive with a qualitative approach. We have conducted interviews on site in Brazil, with representatives from Swedish companies and organizations. The data from these interviews form the basis of our analysis. We chose to supplement the analysis with secondary data in the form of reports from the Swedish Embassy and Swedish organizations. Results In our case study we have found that the biggest barriers to entry the Brazilian market for Swedish companies are high import duties, bureaucracy, expensive labor force, criminality, high tax burden, lack of knowledge in the English language, a complex tax system, and basic cultural differences.