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Determinants of Firm Entry into the Brazilian Automobile Manufacturing Industry, 1956–1968

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  • Shapiro, Helen

Abstract

This article examines the negotiating process between the Brazilian state and transnational auto companies. It argues against dichotomous frameworks that emphasize either economic or political variables in shaping foreign direct investment and in favor of a more complicated bargaining framework that takes into account the strategic objectives of state policy as well as the form and timing of firm investment. Using archival evidence and interviews, the article documents the implantation of the industry; it concludes that the process of firm entry into Brazil must be understood in light of the policies and institutions that made the threat of market closure and the deadlines credible and made it costly for firms not to participate on schedule.

Suggested Citation

  • Shapiro, Helen, 1991. "Determinants of Firm Entry into the Brazilian Automobile Manufacturing Industry, 1956–1968," Business History Review, Cambridge University Press, vol. 65(4), pages 876-947, January.
    • Handle: RePEc:cup:buhirw:v:65:y:1991:i:04:p:876-947_06
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    Cited by:

    1. Havas, Attila, 2007. "The Interplay between Innovation and Production Systems at Various Levels: The case of the Hungarian automotive industry," MPRA Paper 52744, University Library of Munich, Germany.
    2. Havas, Attila, 2006. "Private Sector R&D in the New Member States: Hungary," MPRA Paper 55786, University Library of Munich, Germany.
    3. Lazzarini, Sergio G. & Mesquita, Luiz F. & Cronin, Patrick, 2007. "Determinants of Firm Competitiveness in Latin American Emerging Economies: Evidence from Brazil’s Auto-parts Industry," Insper Working Papers wpe_82, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
    4. Bucheli, Marcelo & DeBerge, Thomas, 2024. "Multinational enterprises’ nonmarket strategies: Insights from History," International Business Review, Elsevier, vol. 33(2).
    5. Attila Havas, Attila, 1995. "Hungarian car parts industry at a cross-roads: Fordism versus lean production," MPRA Paper 79305, University Library of Munich, Germany.
    6. Tomàs Fernández-de-Sevilla & Armando J Dalla Costa, 2017. "The formation and take-off of the Sao Paulo automobile-industry cluster," Working Papers 17014, Economic History Society.

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