DEVELOPMENT OF A THEORIC RESEARCH MODEL TO INVESTIGATE LOCALIZATIONAL FACTORS FOR FOREIGN DIRECT INVESTMENT

Abstract

The series of changes through which Brazil's trade regimen has gone through since the early 90's, has lead foreign companies to start evaluating Brazil and its localizational advantages as a recipient foreign direct investment. This study presents the process to establish a model that was used to investigate what localizational factors attract foreign direct investment to a region. The development of this model was motivated to be applied on case analysis of the Campinas Metropolitan Area. As the study develops, the main approaches to the localizational issue are analyzed within the context of the new economic geography, taking into consideration what motivation a multinational company may have to make foreign investments as well as the advantages these companies have in obtaining international success.