Brazil and Foreign Direct Investment – Master in International Management- University of Liverpool

Brazil has been cited as an attractive country to FDI among countries such as China, India, Russia and South Africa. That’s been happening due to a persistent development of economic stability policies, increased privatization process and creation of incentives in order to attract foreign investors. Nonetheless, it is still extremely bureaucratic to start a company in Brazil; consequently, the longer it takes to make things legal, the more expensive will be the final process.

The final cost to start up a company in Brazil is three times higher than in other BRICS countries. Besides that, other factors such as corruption, costly taxes and labor scenario and high interest rates make Brazil a difficult place of doing business.


Although the middle class increased considerably, the social discrepancy is still very high and the concentration of power aligned with corruption result in companies getting stuck in the process of being established in the country.

Cultural and market knowledge are fundamental but not enough in order to a company obtain timely success when corruption and bureaucracy are hand to hand