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Brazil is the largest recipient of foreign direct investments (FDI) in Latin America and welcomes foreign investments in most areas of business. However, certain sectors such as the media, aviation and aerospace, nuclear energy, fishing, health services, mail services, and rural and border properties are subject to foreign ownership limitations (2009 Index of Economic Freedom). Brazil’s inward FDI has increased from an annual average of $12,000,000,000 to $34,585,000,000 in 2007. Brazil’s stock of inward FDI in 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 record high of $42 billion. Although the world outlook for FDI in 2009 is rather bleak, the outlook for Brazil is improving. The most attractive sectors for new FDI include automobiles, metallurgy, and financial services. These sectors made up 50.2% of FDI investments in 2008 (Oliveira 2008). Brazil has a relatively small but rising outward FDI stock figure. Total outward FDI stock was just 41,044,000,000 in 1990 but has risen to $129,840,000,000 in 2007 (World Investment Report 2008). Although it is thought of as friendly towards FDI, Brazil is known for high taxes and extensive regulatory requirements.
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