Case 166 - Brazilian Informatics and the United States: Defending Infant Industry Versus Opening Foreign Markets

Odell, John and Anne Dibble

In September 1985 President Ronald Reagan ordered an investigation of Brazil’s program to promote a national computer industry, on the grounds that it could restrict some United States companies’ exports and investments. Reagan effectively threatened to retaliate against Brazil’s trade unless it made significant concessions on this issue. This two-part case study is useful in courses on negotiation, international political economy, international business, economic development, and international trade.