CHALENGES AND OPPORTUNITIES BROUGHT BY FOREIGN DIRECT INVESTMENTS IN BRAZIL

Abstract

This paper analyzes the challenges and opportunities brought by foreign directinvestment in general and in Brazil particularly. The study is based on literature review andstatistical data show that foreign direct investments have important effects on the businessenvironment of the host country as they bring productivity improvement, formal employmentand income generation, increase on the export level, establishment of firms with highinnovation standards and the capacity to improve the quality of national products, with somedegree of technology diffusion, increases in the network of suppliers and possible buyers, andthe introduction of new strategies of business management, logistics as well as other ways ofmodernizing industrial structures. It concludes that the major benefits from foreign directinvestments are the change on local companies strategies. The study also shows thatinvestments are concentrated on most developed areas and that there is no specific strategy forinvestment attraction to the less economically favored areas of Brazil

Keywords

• Foreign Direct Investment
• Business Environment
• Globalization Effects