Smith International Legal Consultants, P.A.

Continuing with our theme, this week we look at three other myths that sometimes float around and provide a counterpoint to consider.

• For years, the conventional wisdom was that most significant investment between Brazil and the US traveled a one-way road from the US to Brazil. Based on the activity of private equity funds in Brazil, this may not be the case. The Fogo de Chão chain of steakhouses is now 100% owned by Brazilians, and Fogo de Chão has 17 restaurants in the US compared to 6 in Brazil, even though it started in Brazil. In addition, Burger King is now owned by a Brazilian private equity firm.
• "When the US catches a cold, Brazil gets the flu." Sound familiar? A potential response comes from a former president of the Brazilian Central Bank, who cited demand in China as the primary driver of Brazil's ability to whether a crisis in the US. With massive Chinese investment in Brazil and big commodity sales from Brazil, the saying may no longer be true.
• Pedestrians don't have the right of way. Okay, this might still feel true when visiting Brazil, but the law is in the pedestrian's favor, and the police are promising to enforce it. Maybe it will soon be a legal and practical myth.

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