Raul de Gouvea Neto

Mercosur: fostering regional economic integration

Emerging multinationals are a relatively new phenomena in the global trade scene. Brazilian companies involved in international business, numbering over 900, are present in a number of industries in several markets around the world. The development of Mercosur has created an environment conducive to the increasing involvement of Brazilian companies in overseas markets. This article discusses the relationship among economic integration, flows of foreign direct investment, and firm strategies in the Mercosur region, with respect to the Brazilian experience. ©1998 John Wiley & Sons, Inc.

The Role of Transnational Companies in the Brazilian Defence Tripod

Within a short time span Brazil became one of the worlds largest producers of defence hardware. In 1987, Brazil was the fifth largest exporter of arms worldwide and the second largest arms producer among the newly industrialised countries (NICs). This article argues that the roots of this rapid development of the Brazilian Defence Industry (BDI) lie in the vital role of multinational companies (MNCs) and in the harmonious tripod orchestrated by the Brazilian government. The State, through its interaction with the Brazilian private sector and with subsidiaries of MNCs, brought together the political support, a supply of funds, the manufacturing capability and technology that are vital in any attempt to establish an indigenous defence industry. Above all, the Brazilian government achieved the balanced coordination of these variables essential for maintaining the dynamics of the industry.

Shifting the Technology Paradigm: Moving Towards Commercialization

ABSTRACT The economic changes faced by several Brazilian companies with origins in the defense industry have forced a shift in their technological strategies. Embraer, the darling of the Brazilian defense industry, has dramatically revamped its business strategy and has succeeded. Others, such as Avibras and Engesa, have not fared as well in this shift. This paper presents a model for the shift of companies whose technological competencies change due to market forces and how such companies respond to these strategic decisions. The cases of Embraer, Avibras and Engesa highlight the factors of success and failure. RESUMEN. Los cambios económicos enfrentados por varias empresas brasileñas basadas en la industria de defensa forzaron un cambio en sus estrategias tecnológicas. Embraer, la niña querida de la industria de defensa brasileña, ha modernizado su estrategia comercial con éxito. Otras empresas como Avibras y Engesa no tuvieron tanta suerte al efectuar el cambio. Este estudio muestra un modelo para el cambio que deben efectuar las compañías cuyas competencias tecnológicas cambian debido a las fuerzas del mercado, y cómo es que ellas responden a estas decisiones estratégicas. El caso de Embraer, Avibras y Engensa sirven para destacar los factores de éxito y fracaso. RESUMO. As mudanças econômicas enfrentadas por muitas empresas brasileiras, oriundas da indústria de defesa, provocaram uma mudança nas suas estratégias tecnológicas. A Embraer, a menina dos olhos da indústria brasileira deste segmento, reformulou a sua estratégia de negócios e obteve sucesso. Outras, como a Avibras e a Engesa não obtiveram o mesmo sucesso com tal mudança. Este trabalho apresenta um modelo de mudança para as empresas, cujas competências tecnológicas mudam de acordo com as imposições do mercado, e como elas reagem a estas decisões estratégicas. Os casos da Embraer, da Avibras e da Engesa destacariam os fatores de sucesso e de fracasso.

Awakening The Sleeping Giant: Market Oriented Reforms in Brazil

The 1990s are seeing a business revolution taking place south of the Rio Grande border (Baker et al. 1992). Latin American countries are making strong efforts to recuperate the ground lost in the 1980s, the “lost decade.” The inward economic growth model pursued by these countries show clear signs of exhaustion in the 1980s, with Latin American economies lagging behind South East Asian tigers.