Abstract
Assesses the effects of foreign direct investment (FDI) in the motor vehicle industry in two areas of Brazil, focusing on the development of regional institutions to support social dialogue. Examines the flow of FDI into the Brazilian motor vehicle industry during the late 1990s, describes the modernization process in the industry and analyses the productive chains set up in the two regions. Investigates strategies adopted by government and local agents to attract new capital and discusses the future outlook for the two regions.