In international investment, the legal factors will influence free-market as many other for the foreign investors. This part will analyze how the legal factors affect the free-market of India and Brazil for the global investors. And make the recommendations for the international investors. 

•Cost

Brazil

The taxation cost in the Brazil in not high, but there are the various taxations, which mean that the foreign investors need to give most of their income to the Brazil government. In addition, the various taxes usually minus the total income of the foreign investors. Another cost is the high workforce payment in Brazil, because the Brazil workforce is not like Indian (International Business Publications. 2003).

India

The India workforce is growing fast, so the human cost is low than Brazil. And then lack of fair implementation of judiciary departments of India will be the biggest cost (Shabbir, 2011). This makes the foreign investment become harder. In another case, if the foreign investor cannot build well relationships, it will cause some diplomatic dispute between two countries.

Benefit：

Brazil

Brazil has more taxation advantages than India, for example, the Brazil government uses the tax incentives for the foreign investment so that Brazil can attract more foreign investment (International Business Publications. 2003), which is better than India taxation policies. Brazil government has signed taxation, which has not been implemented avoiding agreement to protect the interests of the foreign investment. The government has made law to protect the intellectual property protection. 

India

The India government makes comprehensive legal framework for business entities, for example, the country has succeeded in taxation reforms and driving foreign investment in recent times. And also the government has gradually implemented the investment legal. The India’s economy is developing so rapidly in the world (Shabbir, 2011). This is the advantage of the legal factor of India.

•Risk：

Brazil

Compared with the India, Brazil has completely protection of intellectual property rights. While the big problem in Brazil is the temporary regulatory which impede the process of FDI (International Business Publications. 2003), for example, it is difficult to transfer the income for Brazil Company, which indicates that the government doesn’t implement the agreement for the foreign investors. In addition, Brazil government also makes amount of rulers for the foreign investment.

India

The international trade has not been implemented in Indian, because ‘red tape’ is the big risk for the foreign investors (Shabbir, 2011), which also lead to the unequal rights for the foreign investors. Another risk is that the complex social relations in Indian government, which will make the investment become complicated that in other countries. 

After the comparison of the two counties legal factors about foreign investment, Australian companies can invest their projects in India to get more income instead of Brazil. 

International Business Publications. (2003). Brazil Investment and Business Guide [Perfect Paperback. International Business Publications Inc. 

Shabbit, W. S. (2011， January). Doing Business In India: Mutual Benefits and Big Opportuntites. The Metropolitan Corporate Counset, pp. 40.