Case Study

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MiniCase 3.1
1). Use the theories of international trade and investment that have been presented in this chapter to help explain Brazil’s intentions and actions regarding the international information technology sector. International trade theory shows that nations will attain a higher level of living by specializing in goods for which they possess a comparative advantage and importing those for which they have a comparative disadvantage. For Brazil, they have launched an active campaign to build a strong international competitive position in the IT off-shoring business, trying to attract business that might otherwise be going to these other nations or regions. They have a sophisticated telecommunications and network availability. They also have a strong engineering school and capable of producing high quality technical graduates. Employee turnover is only about 20 percent, versus the 40 percent rate in India. They are only a single time zone difference from the east coast of the United States compare to the rest of the world. Brazil is showing their intentions and action that they will be a competitor in the IT outsourcing business.

2). What recommendations would you give to the Brazilian government and its out-sourcing industry in order to improve their prospects for success in building a strong international competitive position in the information technology outsourcing business? The recommendation I would give the Brazilian government would offer scholarship to student in IT sector but with some form of contract. What I mean all these inner city or poor children who are smart but don’t have the means to pay for an education. Like the U.S. Army, you can sign up for a minimum of three years and get money for education. Well the government can offer that they will pay for their education, but when they graduate they will work the first three years for them. Start to offer more English speaking class for elementary school all the way up to the corporate...
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