Why Fiat locate in Brazil?

1. The states of Minas Gervas offered loans, grants them cheap land, so Fiat could build and operate a factory at low cost.

2. Brazilian Government wanted to develop a motor industry to bring long-term employment, leading to an expansion in the car market.

3. Large pool of workers avaliable, who would work for low wage. They are paid $7 an hour. Factory workers in the UK are paid £12 an hour.

4. Fiat would have a guaranteed market within Brazil and could supply cars to other South American countries. Brazil's economy is growing, so more and more people want to buy cars.

5. In the 1970s Brazil had a strong military government. Therefore strike action was unlikely. Employees still have a good work as good jobs are scarce. For every person hired there are four others waiting for a job.