The operating environment.

The article presents information on the political and economic conditions in Brazil. Brazilian President Luiz Inácio Lula da Silva remains popular in his second term in office. His economic policies such as fiscal discipline and inflation-control measures raised criticisms but kept the economy stable. Brazil is the world's fifth-most populous country and the tenth-largest world economy in terms of gross domestic product (GDP). Its GDP grew by 5.4% in 2007 and it is expected that it will reach a similar 5.3% in 2008. INSETS: Investment-approval checklist;Recent foreign direct investment.