The neighbor's grass is greener… And it works wonders!

* by Daniel Toledo

I want to reflect on the structure and solidity of the market, appreciation, devaluation of currency and the security where investment is made or the origin of receiving assets, making a comparison between Brazil and the United States.

Designing the company in the American market means that the entrepreneur is acting on several fronts, which is excellent because beyond the greater profit margin, he does not suffer from the fluctuation of the economy as it happens today with those who only operates in Brazil. And when they go to internationalize the products the institutions grow, thrive and start earning more out there… And the result? They leave Brazil to close jobs and that's just one of the many negative impacts.

The search for internationalization is also a way of trying to escape the high rates practiced by the Brazilian government that prevents growth. Unfortunately, there is a certain point that the entrepreneur knows that if we increase the structure and consequently the gains, it will be even more taxed. We are talking about a completely demotivating environment for those who undertake. There is a stagnation because the country does not inject money and does not deposit security (credit) for those who are heating the economy.

And the one who stays follows massacring the consumer with high interest, after all, impossible to stay on the market if not this way. I separated an example to illustrate part of this chaos for which Brazil evolved. In 1996, a Santana model 97, complete then considered a luxury model and preferred by executives, cost around 18000 reais. At the time, the dollar was around 1.04 to 1.03, practically one by one.  If we take a vehicle with the same profile, like the Corolla, also the same year of manufacture only sold in the United States, we run into the price of 12,728 dollars, that is, the Volkswagen vehicle cost 6000 dollars more.

Bringing this scenario to 2018, a 0km Corolla in the United States, model already next year, costs 14,900 dollars, presenting an appreciation around 2000 dollars. What was in 1996 suffered little change in relation to current values.

Now we're going to travel to Brazil. The same car, in 1996, was sold for 18,990 dollars and is now marketed at the dealerships for 115,000 reais, almost ten times as much.  Some may say that now the dollar is 4 to 1, resulting then in 25000 dollars, then what would be the reason? Even if it is considered the devaluation of the currency, what happened from there to here? So there was this price explosion?

For all that I quoted, and besides a number of reasons, Dolarizar brings many benefits and security and this example of the car serves to illustrate. Putting a product abroad means achieving a certain stability that does not exist in Brazil.

To internationalize your curriculum, your service, product, company, you can get away from a very large variation, to structure in a homogeneous and structured way.

And even if there is a crisis, or an overvaluation, your receivable currency is stable. You will be in independent balance of the situation

* Daniel Toledo is * Daniel Toledo is a lawyer specializing in international law, business consultant and founding partner of Loyalty Miami. For more information, visit: Http://www.loyalty.miami or contact us by email @ loyalty. Miami. Toledo also has a YouTube channel with more than 55000 followers Https://www.youtube.com/loyaltymiamiusa with tips for those who want to live, work or undertake in the United States. The company is now headquartered in Portugal and Spain.



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