Internatinal Business Management - Risk Analysis of Brazil Essay

Internatinal Business Management - Risk Analysis of Brazil - Essay mannequinThe article has emphasized the need for FDIs in the agricultural do principal(prenominal) of Brazil, and how with the proper flow of finance into this sector will help agriculture of Brazil reach the unfathomable heights.Foreign Direct Investment (FDI) occurs when an investor base in one country (the home country) acquires an asset in another country (the force country) with the end to manage the asset. (Graham Jeffery P, 2005)Over the years FDI has helped a great deal in the globalisation and internationalisation of logical argument ventures across the globe especially in the growing countries. According to a source from the UNCTD, in the developing countries annual FDI flow has increased from less $10 billion to $636 billion in the span of troika decades that is from 1970 to 2004. (U.S. Dept of States, Jan, 2009) This huge increase in the flow of FDI was driven by the industrial mergers, acquisition s and globalisation of businesses. One of the main aspects of FDI is that it enhances the flow of capital and technology into the developing countries. This is generally beneficial to both the parties, the home ground and the host ground, that is, the country which makes the investment and the country which takes in the investment, respectively. It also presents the smaller and the medium sized industries with the opportunity of neat more actively involved in business on the international level. To sum it up the FDI assists in the internationalisation of small business, harnesses a spirit of cooperation between the different nations and different firms within the nations and overall speeds up the growth and economic development of the participating nations and firms. (Graham Jeffery P. and Spaulding R. Barry, 2005).The Federative Republic of Brazil, geographically situated on the Latin status of America and with a work force of 99.23 million is one of the fastest growing economies in the arena of developing countries of the world, with an