Why has a ‘little Sweden’ emerged in Brazil? : A study of Swedish direct investments in Brazil
Not long ago, Brazil was a country with an unstable economic system; inflation and interest rates were high and the political system was corrupt and complex. Still Brazil has for a long time been a successful market for Swedish companies. In São Paulo, the financial center of Brazil, a “little Sweden” has emerged which is considered to be the largest center for Swedish industry outside of Sweden.The purpose of this thesis is to examine why a ‘little Sweden’ has emerged in Brazil as well as examining what importance different economical factors have had for Swedish foreign direct investments in Brazil. Theories regarding foreign direct investments as well as other business theories have been used in the research. To get a deep understanding of the subject, four interviews have been made with organizations involved in helping Swedish companies in Brazil.The research has shown that the most important factors in the creation of the ‘little Sweden’ has been; access to production factors such as natural resources, the competitiveness of the home market together with the size of Brazil’s market, the financial capacity of the Swedish companies, the fact that Swedish companies could offer products and services that suited the demands of Brazil, as well as the fact that the Swedish entrepreneurs had a long term thinking and a great optimistic visions for the future.
Source Type:Master's Thesis
Keywords:foreign direct investment brazil international trade
Date of Publication:01/31/2008