JRI signs memorandum of understanding with Brazil’s Getulio Vargas Foundation (FGV) on cooperation in business technical advisory
April 16, 2013
The Japan Research Institute, Limited (JRI) on April 15, 2013 signed a memorandum of understanding with Brazil’s Getulio Vargas Foundation (Fundação Getulio Vargas; FGV) on future cooperation in the business technical services.
1. Date of memorandum of understanding
April 15, 2013
2. Purpose of memorandum
JRI and FGV, recognized as one of the leading higher education and research institutions in Central and South America, have signed this memorandum of understanding with the intention of cooperating with a view to the creation of new business opportunities in Japan, Brazil and related countries and regions. The memorandum was signed with the intention that the parties will hold seminars and other events using the networks and expertise they have built up, and provide technical advisory services to companies that have business interests in the region and with companies from the region.
3. Business with Brazil and JRI’s future approach/initiatives
Brazil is enjoying stable economic growth, and is likely to see still further growth in the lead-up to its hosting of two global events – the 2014 FIFA World Cup and the 2016 Summer Olympic Games. In recent years, the income gap between Brazil’s rich and poor has been narrowing, its middle class has been growing in numbers, and the country is increasingly attractive as a huge consumer market with the world’s sixth-largest GDP and a population of nearly 200 million.
However, it has been pointed out that the physical distance between Japan and Brazil, together with the tough local business environment, characterized by difficulties in accessing and obtaining information on markets and companies due to cultural differences (language, social customs, business practices), a complex tax system, excessive worker protection measures, and a weak transportation network in comparison to the size of the country, etc – referred to as the “Brazil cost” – act as a barrier to Japanese companies seeking to establish and develop business operations in the country. Although economic exchange between Japan and Brazil, which had been stagnant since the 1980s, has intensified once more since the early 2000s, the number of Japanese companies with business operations in Brazil at present is only 245 (1), by no means a high figure considering the scale and future growth expectations of the Brazilian market.
Brazil is not an easy business environment, but offers considerable attractions in terms of market size and growth potential. Under these conditions, building a partnership with FGV, which has extensive networks in the public and private sectors, both in Brazil and in other countries, and is involved in a wide range of projects, is expected to create yet more diverse and highly valuable business opportunities for JRI through supporting Japanese companies that are planning to develop business operations in Brazil. JRI will maximize the benefits of its collaboration with FGV in providing commercialization assistance to Japanese companies that have business interests in Brazil and with Brazilian companies.
(1) “Kaigai shinshutsu kigyo soran (kunibetsu hen)” (Comprehensive list of companies with business operations in overseas markets, by country) (in Japanese), Toyo Keizai, Inc.
【About Fundação Getulio Vargas (FGV)】
Founded in 1944 in Rio de Janeiro, FGV is broadly recognized as one of the biggest and the most important educational and research institutions in Brazil, and South America and the Caribbean.*
FGV possesses many academic units inside such as business schools, research center, and also a think-tank body, and has established partnerships with renowned academic institutions all over the world. Large amount of researches and studies have been implemented and provided to various clients including public and private sectors in Brazil and abroad, and international organizations as well.
*”2012 Global Go To Think Tanks Index Report” by University of Pennsylvania. In the same report FGV is ranked in the 24 think-tank of the 150 think-tanks in the world.