If we take a closer look at the evolution of Portuguese economy along the second half of the nineties, we won't be surprised to find out that the internationalisation of its best performing companies is one of the main features. In fact, all the available data suggest that, from 1995 onwards, the internationalisation process carried out by those firms has been assuming several forms, such as exports, joint ventures, strategic alliances and, specially, FDI. Those flows have no single destination, although we can identify a strong tendency toward South America, especially Brazil (over 40% of global Portuguese FDI), together with Spain and Holland. Thus, we aim, through inquiring top managers of Portuguese firms, to identify the main determinants of Portuguese FDI in Brazil, and to demonstrate that the so-called special relationship between Portugal and Brazil, expressed, among other things, in a common language and with a deep interconnected history and culture, was quite significant in the internationalisation option of Portuguese firms.
Internationalization; FDI; determinants; market potential; cultural proximity
