Investment Decision Selection Hyundai Motors & Brazil Essay

Investment Decision Selection Hyundai Motors & Brazil - Essay Example In contrast, China, one of the fastest emerging economies in the world, tries to save its domestic industries from foreign competition by imposing operational restrictions to foreign businesses. However, today China is removing such operational regulations so as to attract more potential global investors. Balance of payments (BoP) is an accounting record that keeps all trade or monetary transactions between a nation and the rest of the world. Some economists opine that the concept of balance of payments would help to analyze the difference between a country’s total exports and total imports. It is considered that a country has positive balance if it maintains a surplus of exports over imports. According to the Brazil’s Ministry of Development, Industry and Foreign trade, the country kept a positive balance in 2011 by maintaining exports of US$ 256 billion over its US$226 billion imports. Reports also indicate that this approximately 30 billion surplus achieved by the country is the highest since 2007 (EcoHouse). This positive balance of payments can be directly linked to international flow of goods, services, and capital. While analyzing the Brazilian offshoring sector, it seems that the country has a range of competitive advantages in the IT and software industries. He nce many foreign companies outsource their IT and software related projects to Brazil. In addition, the country has better human capital strengths. The Brazilian government provides industrialists with extensive subsidies for R&D activities because the government greatly enhances innovations. In short, it can be stated that the country’s domestic economic behavior is favorable for international trade, which in turn facilitates cross border flow of goods, services, and capital. As it is claimed, â€Å"international flow of goods and services and the international flow of capital constitute the sum total