It adds for the imminent improvement in the qualification that it would turn into investment degree (against which the investors are speculating). The monetary policy, that shows a slant of rates of neutral bull by the inflationary pressures, also contributes to the strength of the real one. It is truth that the type of appreciated change has made difficult the competitiveness of the Brazilian companies and it is seen partly reflected in the dynamics of the current account of Brazil. Nevertheless, the appreciation rate that comes observing the real one has been an obstacle for the growth of its companies, since they have found opportunities within the weaknesses that this situation generates. With a real one hard, everything is cheap in the outside for the Brazilians, until the purchase of companies, and is for that reason that for some years, come realising strategic acquisitions of companies in the outside. By means of this strategy, the Brazilian companies are carrying out a process of international expansion that not only is limited Latin America, but also includes to markets like the EE.UU and Canada. In the month of 2007 July for example, the iron and steel group Gerdau S.A.
(NYSE: GGB; BVSP: GGBR3) (the producing long steel major of America), remained by US$ 4,220 million with the control of the American Chaparral Steel Company. In Latin America, the Brazilian companies have bought, from the 2002, companies in Argentina by more of US$ 6,000 million. The sectors in which the Brazilian companies invested are very diverse: footwear, textiles, foods, construction, petroleum, iron and steel industry, drinks, etc. The international expansion in the meat sector, by means of the acquisition of plants in Argentina, Uruguay, the USA, Australia, Japan and Italy, is like the exporting plants with Brazilian flag distributed in different continents represent 51% of the meat world-wide business. Another one of the factors that, next to a real one hard, make possible this process of international expansion, is the access to the financing.
In Brazil the National Bank of Development, is the main bank of financing of the companies Brazilian. According to Jorge Vasconcelos, Argentine economist of the Mediterranean Foundation: ” the great companies of Brazil, in spite of the high interest rates for the internal market, resort to the BNDES, that finances credits to them to annual 7%. In addition, they count on an ample exit to the external market of capitals, since the risk country of Brazil is bajo”. This process of internationalization of the Brazilian companies is going to follow during this year with good rate. Gerdau, that already has subsidiaries in Argentina, Chile and Uruguay, glides to increase to its participation shareholder in the Chilean iron and steel Diaco SA and Of the Pacific. The financial sector and the one of infrastructure are others of the sectors at which they are watching from Brazil. Also Petrobra’s (NYSE: PBR; BVSP: PETR3), has ambitious plans of expansion (with a plan to destine US$ 7,500 million for businesses in the outside until 2010). With the internationalization, the Brazilian companies win in competitiveness and increase their regional leadership. This power capacity of generation of gains that they have and for that reason increases the attractiveness for the investor.