ABSTRACT
This chapter presents the case of Brazilian state-owned oil company Petrobras, discussing its creation, the strategic and political motivations of setting up a strong national oil industry. The oil industry is traditionally one of the most internationalized in terms of trade and in foreign investments flows, in a market historically dominated by a few giant companies from developed countries. The international expansion started in 1972, with the creation of Braspetro. At the time oil imports accounted for 80% of domestic demand. Its international branch was, at that time, concerned primarily with assuring domestic supply. In terms of internationalization, the role of the government is restricted to the strategic search for oil sources at the early global expansion of Petrobras. Policies to foster internationalization of Brazilian firms have only recently entered the government's agenda, as part of a strong policy aimed at boosting export performance and improving competitiveness through investment in Research and Development towards new strategic sectors.
