Brazil has been among the world's leading recipients of foreign direct investment (FDI) in recent years. The impressive figures reflect the longstanding presence of international companies in prominent areas of the Brazilian economy such as telecommunications, chemicals, pharmaceuticals, automobile manufacturing, and many parts of the service sector.
These investments have been sustained, among other factors, by the size of the domestic market, political stability, openness and improved macroeconomic conditions, especially in terms of enhanced fiscal discipline and adjustment, as well as by various economic reforms. Besides their very positive financial impact on the balance of payments, the inflow of FDI has played a major role in enlarging industrial capacity and boosting competitiveness.