University of Azores
Portugal is a strategic regional location for multinational companies (MNEs) from various countries. This article, through a model based on structural equations (Structural Equations Model), will address the motivations of Brazilian companies to invest in this country compared with firms of other nationalities, which are represented by German companies, Italian, Spanish, American and Japanese. The structural equations allow to infer the safety test results and theoretical constructs. From a theoretical model (known as “structural”) constructed from a measurement model (or measurement) is scanned a set of dependency relations, linking the constructs of the hypothesized model. The structural equation modeling is suggested by Hair Jr. et al. (2006) for three purposes: confirming models, evaluation of competing models and the development of new models. In this study, we opted for the development of models related to the first situation, namely the confirmation of a particular model from a theory of FDI. This article has the following structure: first, it will enter the Portuguese economy from the twentieth century. Soon after, it will analyze the internationalization of the Portuguese economy, particularly foreign investment in Portugal. Thirdly, it will put the analysis model, with its conclusions regarding the differences and similarities in the determinants of investments between Brazilian companies and other nationalities in the decision to settle in Portugal, for example, the influence of linguistic affinity and logistics, respectively.