The names trip rhythmically off the tongue, conjuring images of beautiful beaches, beautiful people, flamboyant color and vibrant music: Flamenco, Ipanema, Copacabana. We can only be in the Cidade Maravilhosa — the Marvelous City. We can only be in Rio de Janeiro.

Rio owes its success — and its beauty — to Guanabara Bay. The Portuguese first arrived here in January 1502 (Rio de Janeiro translates as “January River”), finding a sheltered expanse of water surrounded by thick forest and sculptural granite peaks. The French later established a colony on one of the islands in the bay, but in 1565 they were ousted and the Portuguese laid down the foundations for modern Rio.

In 1808, with distant Lisbon occupied by Napoleon, Rio became the capital of the Kingdom of Portugal, presiding over the entire Portuguese Empire. That was its historic highpoint. In 1822, it was downgraded to capital of independent Brazil, and it lost even that honor in 1960, when the political seat of power shifted to purpose-built Brasilia. Meanwhile, Rio’s economic preeminence was eclipsed by São Paulo.

Yet, for the Cariocas (as the inhabitants of Rio are known), the party continued regardless. Over the past 50 years, their exuberant city has become so synonymous with Carnival and other hedonistic diversions that we tend to forget it remains a globally significant economic powerhouse.

With its population of 6.3 million, Rio is the sixth-largest city in the Americas, boasting a gross domestic product of more than $200 billion. Among the gleaming skyscrapers of Centro district, which house many multinationals, you’ll find the headquarters of two of Brazil’s (and the world’s) biggest companies, the energy giant Petrobras and Vale, the mining conglomerate.

Centro, like Rio itself, is not what it seems on first impression. On a weekday, when the streets are clogged with traffic and the sidewalks teem with businesspeople, it appears the epitome of a modern central business district. Yet this is also the historic heart of Rio, containing — sometimes hidden, sometimes in plain view — the layers of five centuries of history.

One of the most striking historic relics is the whitewashed, multi-arched Carioca Aqueduct, which stands adjacent to the Brutalist-style Petrobras HQ and the conical Metropolitan Cathedral of St. Sebastian. The aqueduct once brought in the city’s vital supply of fresh water. When it was decommissioned in the 19th century, it was converted into a bridge for the Santa Teresa Tramway, the city’s first mass-transit system.

For office workers and tourists alike, the tramway, served by century-old yellow trams, was a much-loved institution until the service was suspended following a fatal accident in 2011. A resumption, utilizing brand-new trams, is expected in November 2014.

Transport is the perennial Brazilian problem. Rio’s spectacular natural setting exacerbates the issue. Many of the main highways have to thread their way from neighborhood to neighborhood through valleys and tunnels. Everything grinds to a glacial shuffle at peak times.

Inadequate infrastructure is one of the banes of doing business in Rio. The metro system, expanded prior to the 2014 FIFA World Cup, at least takes some of the stress out of getting to appointments on time (and, perhaps more importantly, getting to the beach at the end of the working day), but transportation difficulties have an enduring adverse impact on the economy. It is estimated transportation absorbs 13 percent of Brazil’s gross domestic product (as opposed to 8 percent in the United States).

Transportation is just one contributor to the great, murky phenomenon known as Custo Brasil — Brazil Cost. Anyone doing business here is surprised to find basic goods and services are significantly more expensive than in the United States or Europe. Along with transportation costs, other detrimental factors include institutional inefficiency, complex bureaucracy, high crime and the associated security costs, a shortage of skilled labor, high taxation and endemic corruption.

But despite the challenges, Brazil’s economy flourishes on a par with Russia, India and China. These so-called BRIC nations are predicted to rival the traditional economic powers in the coming decades.

And so, along with the international pleasure-seekers who have always been drawn to Rio, increasing numbers of business travelers are also beating a path here, arriving at Galeão International Airport nine miles north of the city or at the downtown Santos Dumont Airport, which connects to major Brazilian cities and affords a scenically spectacular landing.

If you’re only going to be in Rio for business, and only during the week, then you’ll probably want to be based in Centro. The district’s hotel of choice is the Windsor Asturias. Although the rooms are in need of refurbishment, the public areas, especially the rooftop bar, are good for meeting contacts; and the location is within walking distance of most downtown appointments.

Confeitaria Colombo has been the prime place for meeting over coffee in Centro since 1893. Time stands still here. The sumptuous interior features a tiled floor, smoky mirrors and rosewood furniture. The Cristóvão Restaurant upstairs is ideal for lunchtime meetings. For dinner, Hachiko Restaurant, serving Pan-Asian food, provides a great option.

Centro is not such a good base on weekends, however. On Sundays especially, the streets are eerily quiet, and lone outsiders are easy prey for local thieves. Crime is certainly an issue throughout Rio. Once you’ve been in the city for a day or two, you’ll learn to be vigilant without being paranoid. But on first arrival you should be consciously watchful, and ask the hotel for advice about which areas are safe and which are not.

The Belmond Copacabana Palace hotel © Ekaterinabelova | Dreamstime.com

If you have time to combine business with leisure, you should base yourself on the ocean side of the city. The Belmond Copacabana Palace Hotel, facing the famous beach, has long been the city’s most prestigious address. A recent renovation bolstered its preeminence.

A smaller, trendier choice is the Hotel Fasano Rio de Janeiro, located farther along the coast on Ipanema Beach. This bossa nova-influenced property was designed by Philippe Starck.

Rio’s business style tends to be laid back (Brazilian businesspeople are not known for their timekeeping). Rather than proposing breakfast meetings, consider meeting for brunch. The poolside Pergula restaurant at the Copacabana Palace offers the perfect venue. Yes, for an outsider, the beautiful setting, the dazzling sunshine and the bronzed sunbathers might be a little distracting. But that’s Rio.

Read more about Rio’s favelas.