Financing the Expansion of Brazilian Multinationals into Europe: The Role of the Brazilian Development Bank (BNDES)

The rise of multinational corporations (MNCs) from emerging markets has been a remarkable phenomenon during the last decade (BCG, 2006; 2013; Wright et al., 2005). While total Foreign Direct Investment (FDI) flows grew by 84 percent from 2001 to 2011, those from developing economies grew by 216 percent (UNCTAD, 2013). This is a considerable leap, from 26 percent to 44 percent of the total flows. A series of recent studies have sought to explain the sudden growth of emerging markets MNCs (Brennan, 2011; Sauvant et al., 2010; Ramamurti and Sigh, 2009). To do so, international business scholars have further developed established analytical instruments in order to account for the rise of these multinationals. In some cases, the OLI (Ownership, Location, Internalization) framework (Dunning, 1986), the Uppsala model Qohanson and Vahlne, 1977; 2009), or the product life-cycle model (Vernon, 1966) have been extended (Ramamurti, 2008). In other instances, scholars have contested dominant internationalization theories, insisting on the need for the development of new frameworks (Mathews, 2002a; 2006b).