For emerging economies such as Brazil, the ability to attract foreign direct investments (FDI) is crucial to bringing dynamism and growth. More than money itself, this kind of investment is focused on real assets—such as factories—which in turn create jobs, develop infrastructure, and open up channels for technology transfer that otherwise wouldn’t be possible.
But to convince foreigners to run the high risks inherent to productive enterprises, countries must project promising returns. As Latin America’s biggest market—and one of the largest in the world—Brazil is always an attraction. However, according to consultancy firm A.T. Kearney, Brazil’s market size and potential are matched only by its economic and political uncertainties—a trait we share with other countries in the region.