Foreign investments in Brazil: their benefits and costs.

Considers the benefits and costs of foreign investment for the development of Brazil. The benefits include: a positive effect on the balance of payments, mainly during the initial stages of development of a new sector; the rapid transfer of advanced technology; the creation of new jobs and training of skilled manpower; and the multinationals open new markets for exports of manufactured products. On the other hand, there are several costs, including difficulties of competition by local enterprises; political influence of multinationals; and inappropriate technology. Analyzes, using empirical evidence, the effects of foreign investment in relation to the balance of payments, technology, income distribution, and denationalization. Concludes that multinationals have brought positive and negative effects to Brazil. Comments by Tulio Duran follow. -from Editors