Foreign Investment And Trade Policy

1565 Words May 4th, 2015 7 Pages
Foreign Investment and Trade Policy:
Brazil can be seen as country that is open and inviting foreign investments. Brazil remains the top destination for FDI in the Latin American region and according the A.T. Kearney Foreign Direct Investment Confidence Index for 2015, Brazil is ranked #6 as a global FDI destination. FDI inflows into Brazil stood at USD 60.5 billion as on Feb 2015, (Central bank of Brazil). The US Department of State’s report on Brazil states that Brazil is a foreign investment friendly country however complex tax, local content and regulatory requirements must be looked out for. The Brazilian economy’s GDP growth has been erratic, but is showing signs of stability and is expected to hit 2.1 % during the year 2020(ieconomics.com). Factors like strong domestic demand, global demand for commodity exports, growing middle class, potential investment in infrastructure projects and development of offshore oil reserves are expected to contribute to this favorable outlook.
As stated earlier Brazil is a country that promotes foreign investments. A WTO article says that Brazil is particularly interested in promoting foreign investments in sectors like transportation, energy, and aeronautics to fuel its economic growth. The Brazilian government also does not distinguish between domestic and foreign investors, ensuring a level playing field. As theory points out foreign investment could take the form of portfolio investment and direct investment and in Brazil investment…
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