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Brazil´s internationalization of SMEs: trade barriers and notes on how to overcome them – a commented literature review
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This study assumes a literature review on trade barriers perceived by Brazilian Small and Medium Enterprises (SME). It was found that each previously conducted study on trade Barriers in Brazil uses a different trade barrier classification, subsequently infusing the responses and making direct comparison difficult. This article suggests to use Leonidou’s (2004) classification to aid researchers to compare, synthesize and build upon the research. It was found that most Brazilian SME’s perceive an unfavourable business climate to internationalize. The most severe trade barriers are the deficient logistical infrastructure and unfavourable home regulations. These barriers can be overcome by investing in infrastructure and the effective implementation of logistical policies, while simultaneously making bureaucratic processes more transparent and predictable through providing an adequate enforcement structure. Furthermore, it appeared that firms whose decision-makers are rather incompetent, risk-averse, and inward-looking are very likely to perceive more export obstacles. As such investment on training and education was considered desirable to reduce the perception of trade barriers on all fronts. Even though, it seems like SMEs are subject to unfavourable external situations, they can join strengths by conducting lobbying activities. In addition, government-business consultation is considered key to the future internationalization success of SME, these kind of processes should be open, balanced, and transparent, providing a clear channel for SME participation.
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Internationalization Brazil Trade barriers SME