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Abstract
This work investigates the increased share of foreign direct investment (FDI) in the Brazilian food industry. In addition to conferring on Brazil the important role of attracting FDI to Mercosur (the Southern Common Market), this flow of investment has caused importance changes in the Brazilian industrial organization. Increases in competition, new strategies and changes in the number of employees in the industry are a few of the more remarkable results. The main objective of this work is to investigate the reasons of entry, encountered mainly in the characteristics of the Brazilian market, and the impacts on the local industry, and to signal the long-run effects of these recent changes.