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BACKGROUND
In the 1990’s, Brazil implemented imports release policies aiming at a wider integration in the world economy. During that decade, the state started to reduce significantly its role in the economy throughout a decade of stagnation. In IT industry, the market reserve policy was abandoned in 1992 and replaced by another policy targeted on free competition. In the beginning, the government did not want to lose the capabilities acquired by local companies during the reserve policy but to reduce the problems with its trade balance by encouraging the multinational companies to manufacture the imported products in Brazil. These motivations led to incentives so that multinational companies could manufacture in Brazil and also yielded programs aiming at domestic companies’ development.