EXTERNAL TRADE POLICY IN BRAZIL IN THE CORPORATE PERSPECTIVE THE EXPERIENCES OF VOLVO DO BRASIL WITHIN THE HEAVY DUTY VEHICLE INDUSTRY

Abstract

In this thesis, we examine the trade development in Brazil, the future trade agreements and what opportunities this might imply to the Heavy Duty Vehicle industry. To accomplish this, we take a central perspective approaching with the specific case company Volvo do Brasil and the company’s interest in the future trade negotiations under discussion.

With the background and development of international agreements in Brazil, together with Volvo’s interest in HDV industry we have formulated the following purpose:

How will the development of International Trade Agreements of Brazil affect Volvo do Brasil’s business with in the Heavy Duty Vehicle (HDV) industry?

The combination of identified theoretical frameworks and one model created were useful in this process. The economic integration theories as well as multilateralism, regionalism and bilateralism concepts were important to identify and explain the development of Brazilian international agreements. The instruments applied in trade policies such as trade barriers gave knowledge with the intention to understand how the trade policy of Brazil has changed during last years and get an overall picture of current situation and the actual role of the regulatory framework. When it comes to the structural relationships of the principal actors’ model, it created a link amongst the principal actors; how the company develops and modifies its strategy according to the current and future government policy, trends in the changing pattern of trade and economic integration of the countries. Besides, it brought the opportunity to identify the important consequences for the Brazilian HDV industry.

The scenario planning helps the companies to view the strategic decision in the description of each scenario. We have created four scenarios from this framework, which represent specific opportunities and threats to Volvo do Brasil by searching for characteristics that ultimately determine the future of trade negotiations.