Foreign Firms Flood Market, Making Local Industry Reel BRAZIL OPENS UP COMPUTER MARKET

By Reese Erlich, | The Christian Science Monitor, August 25, 1994 | Go to article overview

Foreign Firms Flood Market, Making Local Industry Reel BRAZIL OPENS UP COMPUTER MARKET


Reese Erlich,, The Christian Science Monitor


BRAZIL is emerging as one of Latin America's largest markets for multinational personal computer firms.

After years of protectionist legislation aimed at developing an indigenous computer industry, Brazil has lowered tariffs and opened its markets. The multinationals have flooded in, and consumer prices have dropped. As a result, critics say, industry employment has declined 55 percent and Brazilian-controlled research and development has been virtually eliminated.

Brazil has an estimated 1.5 million to 2.5 million PCs, says Roberto Pinto, business-development manager at International Business Machines Brasil Ltd. Because of the large amount of contraband smuggled in every year to avoid taxes, no one is sure of the exact number. "Annual PC sales will reach about 400,000" this year, Mr. Pinto says, with IBM controlling about 10 percent of the market.

Beginning in 1984, the Brazilian government sought to develop a local computer industry that would compete with the United States and Asia. But tariffs reached 70 percent on some products, and combined with other taxes, PCs cost four to five times more than US computers. These policies shut multinationals out of the market unless they set up Brazilian partnerships.

In the early '90s, Brazil boasted more than 60 computer-hardware firms. Then, in October 1992, under pressure from the US, Brazil instituted free-market reforms that lowered tariffs to 35 percent. (Within the next few years, tariffs will likely fall to 20 percent.) The result was shocking for the local computer industry. Most of the 60 hardware companies folded. Today, six remain, and all but one have joint agreements with multinational firms.

"The attempts to develop an independent computer industry failed for sure," says Ilan Goldman, president of ASSESPRO, the Rio de Janeiro software trade association. "The hardware companies never developed new technology." So when prices came down, consumers went for brand names such as IBM, Compaq, and Sharp.

Brazilian software faced a similar fate. Today, Mr. Goldman estimates that foreign firms such as Microsoft sell 90 percent of the new programs bought in this country.

Consumers, meanwhile, benefited from the reforms. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Foreign Firms Flood Market, Making Local Industry Reel BRAZIL OPENS UP COMPUTER MARKET
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.