Brazil in the internationalization waves

This chapter aims at briefly describing Brazil's political, economic, and social development, in order to put the emergence of its multinational enterprises (MNEs) into context.

The presentation of Brazilian history is divided into periods aligned with the dynamics of internationalization waves. Brazil performed differently in each one of them. During the first wave, in the 1950s and 1960s, Brazil was essentially a receiver of foreign direct investment (FDI), playing host to new subsidiaries of foreign MNEs. During the second wave, in the late 1970s and early 1980s, isolated and unsuccessful attempts of native Brazilian firms to move into international markets took place. Finally, the third wave, in the 1990s and 2000s, is producing an effective internationalization movement.

More specifically, this chapter will focus on the evolution, as from the early twentieth century, of Brazilian firms and MNE subsidiaries, all of which had to operate within a complex institutional context whose main feature was uncertainty and discontinuity. It is within this context that Brazilian companies are born and evolve, i.e., in competition with foreign MNEs, to then grow into Brazilian MNEs. It is within this competitive system that local firms develop their competences and draft their internationalization strategies.