To: Snowshoe who wrote (54258 ) 8/30/2009 11:08:03 AM From: elmatador Respond to of 217764 outward foreign direct investment (OFDI). We do not plan to hog. seekingalpha.com 5 Reasons Going Abroad Benefits Brazil’s ETF Brazil’s economy and ETF only continue to get stronger. For that reason, it’s no real surprise that the country is now increasingly looking overseas for other investment opportunities to boost the prospects of its companies at home. The idea of Brazilian companies going international is a phenomenon that really only gathered steam this decade. According to Luis Afonso Lima and Octavio de Barros for Latin Business Chronicle, from 2000 to 2003, outward foreign direct investment (OFDI) averaged $0.7 billion a year. Over the four-year period 2004-2008, this average jumped to nearly $14 billion. In 2008 alone, OFDI jumped to $7 billion. Recent data shows about 887 Brazilian companies have invested overseas, and foreign direct investment may only grow as the global economy improves. Today, Brazilian OFDI can be found in 78 countries. The internationalization of Brazilian companies is dominated by the private sector, although state-owned enterprises also play a role. Petrobas is a good example; the company has expanded overseas in 15 countries on three continents. Reasons for more Brazilian companies to move abroad include: The companies are following clients into international markets These companies are defending their competitive position, monitoring the competition in international markets, meeting international demand and reducing their dependence on a single (domestic) market Companies are looking for more natural resources, lower costs, better infrastructure and better incentives than they can find at home OFDI stimulates exports