This study aims to test the Uppsala Internationalisation model and one of its crucial elements, the concept of psychic distance. The evidence is drawn from a Chilean multinational Business to Business manufacturing company, AJ Ing which has gone international since 1997, 14 years after its inception. The Uppsala model and the concept of psychic distance are discussed and explored as well as other relevant literature. This is followed by a computation of psychic distance between Chile and some of the countries AJ Ing is established in, as well as Kenya where it seeks to establish itself soon. Interviews were then conducted with the Assistant Director of Operations at the company in order to give insight into the company's internationalisation process. The results show that the Uppsala model was followed to some extent. The internationalisation was done in incremental steps and after gaining knowledge and experience, but the notion of psychic distance played a minor direct role in the process.

Submitted by Fernando Mistura (f.mistura@gmail.com) on 2011-10-10T19:43:49Z No. of bitstreams: 1 20111010 - ThesisMistura.pdf: 9859237 bytes, checksum: 549c3f8971cac6c47966b93ec2c8debc (MD5) / Approved for entry into archive by Gisele Isaura Hannickel (gisele.hannickel@fgv.br) on 2011-10-10T19:48:44Z (GMT) No. of bitstreams: 1 20111010 - ThesisMistura.pdf: 9859237 bytes, checksum: 549c3f8971cac6c47966b93ec2c8debc (MD5) / Approved for entry into archive by Gisele Isaura Hannickel (gisele.hannickel@fgv.br) on 2011-10-10T19:48:59Z (GMT) No. of bitstreams: 1 20111010 - ThesisMistura.pdf: 9859237 bytes, checksum: 549c3f8971cac6c47966b93ec2c8debc (MD5) / Made available in DSpace on 2011-10-11T12:42:21Z (GMT). No. of bitstreams: 1 20111010 - ThesisMistura.pdf: 9859237 bytes, checksum: 549c3f8971cac6c47966b93ec2c8debc (MD5) Previous issue date: 2011-10-07 / This dissertation has sought to identify the role of BRIC country governments in the internationalization of their firms. Drawing upon an exploratory comparative analysis of BRIC OFDI trends and policies, it contributes to further an initial understanding of this phenomenon by shedding light on how and why BRIC governments have been promoting their multinationals. For this, it analysed specific OFDI-related policies implemented by BRIC countries as a way of highlighting policy-gaps and the effects of institutional set-ups in the development of internationalized companies. The rapid rise of MNCs from BRIC countries is quite a recent phenomenon. Although they had invested abroad before, only since the early 2000s OFDI by BRIC MNCs has become substantial. BRIC MNCs are becoming major players in many industries, taking-over competitors in both developed and developing countries, and reshaping competition in many industries. In this process, BRIC governments have played an important role. While until the early 1990s, BRIC governments restricted OFDI because of a negative perspective on its effects on home economies (e.g., reduction in investments at home, exports of jobs, and constraints to the balance-of-payments), in the 2000s their perception of OFDI changed. They have become more aware of the importance of OFDI for the competitiveness of their firms and industrial upgrade. While China, and to a lesser extent India, are one step further, having already put in place a comprehensive set of specific OFDI promoting policies, Brazil and Russia have yet to take further steps in order to create an enabling environment for their companies to fully exploit the advantages of global expansion / Esta dissertação procurou identificar o papel dos governos na internacionalização produtiva de empresas dos países BRIC. Por meio de uma análise comparativa do comportamento dos investimentos diretos no exterior (IDE) destes países e dos mecanismos existentes de suporte à internacionalização das empresas, foi possível identificar as diferentes maneiras de envolvimento desses governos na internacionalização produtiva de suas empresas e apontar lacunas de políticas públicas nestes países. Destarte, esta dissertação contribui à compreensão inicial sobre como e por que os governos destes países têm promovido o desenvolvimento de multinacionais. A rápida ascensão das multinacionais dos países BRIC é um fenômeno recente. Apesar de terem investido no exterior anteriormente, apenas a partir do início dos anos 2000 que o IDE de empresas destes países tornou-se significativo. Desde então, as multinacionais dos países BRIC estão se tornando importantes players em diversas indústrias, adquirindo competidores de países desenvolvidos e em desenvolvimento, e redesenhando a concorrência em muitas indústrias globais. Neste processo, os governos dos países BRIC têm desempenhado um papel importante. Até o início dos anos 1990, o IDE era restringido porque era associado a efeitos negativos sobre as economias domésticas (como por exemplo, à redução de investimentos no país de origem, à exportação de empregos, e a problemas na balança de pagamentos). Desde o início dos anos 2000, entretanto, os governos dos países BRIC mudaram de percepção e passaram a adotar políticas favoráveis à internacionalização produtiva de empresas domésticas. Eles perceberam a importância da internacionalização para a manutenção ou expansão da competitividade das empresas domésticas em um mundo globalizado. A China, e em menor grau a Índia, estão um passo adiante, tendo já posto em prática um conjunto de instrumentos específicos que facilitam a internacionalização de suas empresas. O Brasil e a Rússia ainda têm de tomar novas medidas para criar um ambiente propício para que suas empresas possam mais facilmente explorar as vantagens da expansão global.