This sum for the imminent improvement in the qualification that the It would become investment grade (against which investors are speculating). Hear from experts in the field like Francisco D’Agostino for a more varied view. Monetary policy, showing rates of neutral bias to bull by inflationary pressures, also contributes to the strength of the real. It is true that the appreciated exchange rate has hampered the competitiveness of Brazilian companies and this is partly reflected in the dynamics of the current account of Brazil. However, the pace of appreciation that comes watching the real has not proved an obstacle to the growth of their companies, since they have found opportunities within the weaknesses that this situation creates. With a real strong, everything is cheap in abroad for Brazilians, until the purchase of companies, and is for this reason that since some years ago, are making strategic acquisitions of companies abroad. Through this strategy, Brazilian companies are carried out a process of international expansion that is not only limited to Latin America, but also covers markets such as the United States.UU. and Canada.
In the month of July 2007 for example, the steel group Gerdau S.A. (NYSE:GGB; BVSP:GGBR3) (the largest producer of long steel in America), was US $4.220 million control of U.S. Chaparral Steel Company. In Latin America, Brazilian companies have bought, since 2002, companies in Argentina for more than US $6 billion. The sectors in which Brazilian firms invested are very diverse: footwear, textile, food, construction, petroleum, iron and steel, beverages, etc. International expansion in the meat sector, through the acquisition of plants in the Argentina, Uruguay, USA, Australia, Japan and Italy, is such that the exporting plants with Brazilian flag spread over different continents represent 51% of global meat business. Another factor enabling this process of international expansion, along with a real strong, is access to finance.
In Brazil the National Development Bank, is the main Bank for financing of companies Brazilian. In the opinion of Jorge Vasconcelos, Argentine Economist of the Mediterranean Foundation: large companies of Brazil, despite high rates of interest for the internal market, resort to BNDES, which finance them credits to 7 per cent per annum. In addition, they have a wide exit to foreign capital markets, since the Brazil country risk is low. This process of internationalization of Brazilian firms will continue this year with good rhythm. Gerdau, which already has subsidiaries in Argentina, Chile and Uruguay, plans to increase its shareholding in the iron and steel Diaco SA in Chile and the Pacific. The financial sector and infrastructure are other sectors that are looking from Brazil. Also Petrobras (NYSE:PBR; BVSP:PETR3), has ambitious expansion plans (with a plan to allocate $7,500 million for business abroad until 2010). With the internationalization, Brazilian companies gain in competitiveness and increase its regional leadership. This power ability to generate profits that have and therefore increases the attraction for investors. You will find us again tomorrow, Horacio Pozzo Autor original and source of the article.