Case | HBS Case Collection | November 2003 (Revised September 2014)

Brazil at the Wheel

by Geoffrey Jones

Abstract

Taught in the second-year MBA elective on the Evolution of Global Business. Examines the costs and benefits of the Brazilian government's policies to encourage foreign multinationals to develop an automobile industry during the 1950s. A combination of incentives and market closure were used to attract foreign direct investment. Volkswagen responded more positively than the U.S. firms Ford and GM and was able to become market leader as a result.

Keywords: Foreign Direct Investment; Multinational Firms and Management; Policy; Government and Politics; Business History; Business and Government Relations; Auto Industry; Brazil;

Citation:

Jones, Geoffrey. "Brazil at the Wheel." Harvard Business School Case 804-080, November 2003. (Revised September 2014.)