Wednesday, January 15, 2014

Por que tudo custa mais caro no Brasil - Why everything is more expensive in Brazil

Have you ever heard it's cheaper for Brazilians to get on an airplane and come to the States to get a Macbook than buying it in Brazil? It's true! If you're visiting, don't worry: food is still fairly priced there, and services are actually really cheap. But if you're considering buying consumer goods there, I'd stick to handmade souvenirs. We have plenty of great options, like the "renda do nordeste", a kind of lace made primarily by the dexterous hands of Northeastern ladies (see picture below).


Compre produtos como a renda do nordeste (acima) / Buy products such as "renda do nordeste" (above)


The following article briefly explains why everything is more expensive in Brazil. If you can't read Portuguese, here's a quick summary:

Razão número 1: muitos impostos / Reason number 1: lots of taxes

A lot of different taxes are charged over consumer goods - 6 to be exact.  Some of those taxes are charged over products that have already been taxed (which we call "impostos em cascata", something like a "waterfall of taxes").

Razão número 2: a busca por status / Reason number 2: search for status

Sporting something expensive shows you have the means to do it. Showing off brand products in Brazil is very common - since we generally don't have as much access to them, they become even more special. So shop owners overcharge, and people will do all they can to acquire that product to feel a bit more special.

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Read the whole article in Portuguese here. It's from the Superinteressante website, the online version of one of the best magazines in Brazil. It presents all kinds of subjects in a very entertaining manner.

Also watch this very interesting news video explaining why everything is so expensive in Brazil. Can you understand what are some of those reasons?




CARO = expensive
IMPOSTOS = taxes
LUCRO = profit
BENS DE CONSUMO = consumer goods
CONCESSIONÁRIA = car dealer
MONTADORAS = car manufactures
"SE COLAR, COLOU" = if people accept it, then we'll go on with it
AGUENTAR = put up with
PREÇO "SALGADO" = high ("salty") prices
ENLOUQUECEM = go crazy
TÊNIS = sneakers

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