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Brazil is the largest recipient of foreign direct investments (FDI) in Latin Americaand welcomes foreign investments in most areas of business. However, certain sectorssuch as the media, aviation and aerospace, nuclear energy, fishing, health services, mailservices, and rural and border properties are subject to foreign ownership limitations(2009 Index of Economic Freedom). Brazil’s inward FDI has increased from an annualaverage of $12,000,000,000 to $34,585,000,000 in 2007. Brazil’s stock of inward FDIin 1990 was just $37,143,000,000; by 2007 this had risen nearly tenfold to$328,455,000,000 (World Investment Report 2008). In 2008 inbound FDI hit a recordhigh of $42 billion. Although the world outlook for FDI in 2009 is rather bleak, theoutlook for Brazil is improving. The most attractive sectors for new FDI includeautomobiles, metallurgy, and financial services. These sectors made up 50.2% of FDIinvestments in 2008 (Oliveira 2008). Brazil has a relatively small but rising outwardFDI stock figure. Total outward FDI stock was just 41,044,000,000 in 1990 but hasrisen to $129,840,000,000 in 2007 (World Investment Report 2008). Although it isthought of as friendly towards FDI, Brazil is known for high taxes and extensiveregulatory requirements.
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