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Case Study Prompt

Our client is Acti Games, a manufacturer and retailer of video games. Acti Games’s current sole production hub is in Shenzhen, China.

They are planning to enter the Brazilian market but one of the factors that has prevented them from entering the market is the tariff for importing products, which is currently at 50% of production costs. However, the Brazilian government is planning to lower it to 25% in the upcoming years, decreasing it by 5% every year (from 50% to 45% and so on).

On top of the tariff consideration, what other factors should Acti Games consider as part of their market entry decision?

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