In spite of the crisis, the Foreign Direct Investment flow in Brazil increased to 25 % between 2008 an 2009. That is to say Brazil is a very attractive economy (is the second destination of FDI flows after China from the European Union). We have chosen the large-scale distribution because it is a famous sector for the foreign firm in Brazil, a high growth devolpment who can be envisaged. We have chosen to take a fictitious firm because Carrefour, the only company that we was interresting, is already in Brasil.
The BRIC (Brazil, Russia, India and China) can be defined like the most powerful country of tomorrow. Today, capital flows are higher than the flow of goods. Moreover, multinational firms play an increasingly important part in the International Business. Foreign Direct investment (FDI) can be defined as money invested by any country to abroad.
The OECD defines direct investment abroad as well: "FDI is an activity in which an investor resident in one country obtains a lasting interest and a significant influence in the management of an entity resident in another country. This may be to create an entirely new company (investment, creation) or, more generally, to change the status of business ownership (through mergers and acquisitions).
What is the advantage for a firm of developed countries to invest in the BRIC countries ? Do we have the managerial, organizational and financial ressources to internationalize ?
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