In Brazil taxes do not "penalize" countries, products or companies.
Right in the middle of the Amazon region there is a development zone where the majority of the electronics are made, in the country, by multinationals. It is called a Zona Franca.
When built in the country the import taxes, which represent the majority of the cost for imports such as electronics, these taxes are removed and make the good much cheaper.
It is the same with Xbox and PS4 in Brazil. An Xbox is 4 times cheaper than a PS4. If Brazil would be against USA or it's companies then it would be the reverse.
Hope I helped.
ps. Many people in country complain about the taxes but forget that when companies move their industries to Brazil, jobs, money and know-how stay there too improving the competitiveness. Sadly the vast majority of the population will look the price tag and complain without knowing the implications behind.
Tariffs definitely do penalize foreign countries/products/companies. Not to say they're a bad idea for Brazil and other emerging countries with large markets, but if everyone had such harsh tariffs, free trade and progress in general would suffer.
Not everybody could do it.. only countries with big markets could have this privilege..
Small contries would get simply ignored by the industries, since its too much trouble..
So it would get reduced to: China, Russia, Brazil, US, Japan.. and if managed in block: Europa..
This policy from Brazil is not a bad one if you think that the only other possibility left for industrial growth(technology transfer) would be one of the cheap labor.. like what happened in China, South Korea and the Asian Tigers..
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Also in Brazil, everything Apple is VERY-VERY expensive, because of the taxation system.. so the market share for Androids and Nokia are bigger
why would the taxation system penalize apple more than nokia or samsung?
It's not like the latters are made in brazil. Does brazil have special punitive tax rates towards US based companies?
Or is it just that the local equivalent of VAT goes up fast with the phone price?
In Brazil taxes do not "penalize" countries, products or companies.
Right in the middle of the Amazon region there is a development zone where the majority of the electronics are made, in the country, by multinationals. It is called a Zona Franca.
When built in the country the import taxes, which represent the majority of the cost for imports such as electronics, these taxes are removed and make the good much cheaper.
It is the same with Xbox and PS4 in Brazil. An Xbox is 4 times cheaper than a PS4. If Brazil would be against USA or it's companies then it would be the reverse.
Hope I helped.
ps. Many people in country complain about the taxes but forget that when companies move their industries to Brazil, jobs, money and know-how stay there too improving the competitiveness. Sadly the vast majority of the population will look the price tag and complain without knowing the implications behind.
Tariffs definitely do penalize foreign countries/products/companies. Not to say they're a bad idea for Brazil and other emerging countries with large markets, but if everyone had such harsh tariffs, free trade and progress in general would suffer.
For your ps: on the other hand, just think what would happen if every country did the same thing.
Not everybody could do it.. only countries with big markets could have this privilege..
Small contries would get simply ignored by the industries, since its too much trouble..
So it would get reduced to: China, Russia, Brazil, US, Japan.. and if managed in block: Europa..
This policy from Brazil is not a bad one if you think that the only other possibility left for industrial growth(technology transfer) would be one of the cheap labor.. like what happened in China, South Korea and the Asian Tigers..
thanks, it was very interesting information.
Actually, they are. There are Nokia, Samsung and LG factories in Brazil, as well as a tax-incentive zone in the Amazon region.
There were, once, local manufacture of Apple equipment (I have a Powermac 4400 from that time), but it didn't survive the takeover by NeXT.