Brazil as an emerging market and the importance of Foreign Direct Investment (FDI)

Résumé du document

With its free market and export-oriented economy, the Federal Republic of Brazil is currently the leading economic power in Latin America as well as a strong regional leader. The country is nowadays attracting many foreign direct investment (FDI) inflows thanks to efficient macroeconomic reforms notably. But it is to say that the country faced many economic issues in the past to finally be considered by foreign investors as one of the best location in Latin America to develop activities. After providing an economic and social profile of Brazil, we will determine what are the factors threatening and sustaining this emerging market, and finally we will provide a deep analysis of F.D.I. inflows in Brazil (nature and importance of F.D.I., are the national institutions supportive of foreign investors? and so on). According to the C.I.A. website (Central Intelligence Agency, The World Factbook: Brazil, 2007), the Brazilian G.D.P. was evaluated to U.S. $1.655 trillion (2006 est.), with a real growth rate of +3.7%, for the same year.

Extraits

[...] The future seems to be prosperous for this growing market. Reference list Brazil (2006), Education in Brazil [online]. Available at: [Accessed 21st November 2007]. Business Anti-corruption portal (2007), Brazil country profile [online]. Available at: [Accessed 21st November 2007]. Central Intelligence Agency (2007), The World Factbook: Brazil [online]. Available at: [Accessed 12th and 14th November 2007]. Economist Intelligence Unit (2007), Country Profile 2007: Brazil [online]. Available from: Business Source Premier [Accessed 15th November 2007]. Encarta (2007), Brazil facts and figures [online]. [...]

[...] Doing Business (2007), Brazil [online]. Available at: [Accessed 21st November 2007]. Indexmundi (2007), Brazil imports [online] Available at: [Accessed 20th November 2007]. Scottish Enterprise (2007), Brazil is a country with vast national resources and good trading links with the UK [online]. Available at: [Accessed 20th November 2007]. Theodora's, Brazil Economy [online]. Available at: [Accessed 20th November 2007]. [...]

[...] Brazil as an emerging market and the importance of Foreign Direct Investment (FDI) With its free market and export-oriented economy, the Federal Republic of Brazil is currently the leading economic power in Latin America as well as a strong regional leader. The country is nowadays attracting many foreign direct investment (FDI) inflows thanks to efficient macroeconomic reforms notably. But it is to say that the country faced many economic issues in the past to finally be considered by foreign investors as one of the best location in Latin America to develop activities. [...]

[...] is less developed in the northeast part of Brazil and, of course, in the Amazon. F.D.I. is actually more concentrated in the most industrialised southern part of the territory (Foreign Direct Investment and Globalisation in Brazil and The Economist Intelligence Unit, p.43, 2007). In this graph, we can notice that F.D.I. in services represents more than the half of the whole investments for the 2001-2006 period. III.F. Which countries invest the most in Brazil? According to the following graph, we can notice the significant position of the U.S.A., Spain, The Netherlands and France. III.G. [...]

[...] For the same period, imports represented U.S. $ 91.35 billion (electronics, machinery, chemical products, oil, automotive parts The main trading partners are currently the U.S.A., Argentina, China and Germany. Between 2001 and 2003, real wages fell and Brazil's economy grew. The country actually absorbed several local and international economic shocks without financial crisis, showing its resiliency and demonstrating the efficiency of its economic program (focus on an inflation targeting regime, floating exchange rate and tight fiscal policy), launched by the former President Cardoso and strongly supported by several I.M.F. [...]