Brazil accepting to reduce trade restrictions is not an option in any scenario. The country's informatics industry could lose from allowing unrestricted access to U.S. informatics companies on the domestic market as many nationally-owned companies would not survive the competition. The gain, however, would be to allow more know-how in the country and help the informatics sector develop further on the quality, rather than quantity direction. In this case, the country should negotiate a gradual market opening that would give enough time to some weak national companies to become competitive against U.S. companies and thus maintain a substantial national ownership percentage in the industry.
Risks associated with the strategies
Greenhouse strategies can be major success of major failures, especially in high-tech industries, which can rarely develop in isolation. It is true that Brazil, the pioneer of such strategy in informatics...
There were hundreds of thousands of jobs that were at stake if the U.S. imposed trade sanctions on Brazil. Because Brazil's trade barriers to U.S. informatics products was so blaringly in violation of international trade rules and was of the nature that justified retaliation Brazil was faced with the loss of lucrative markets abroad that they had worked many years to build. Shoe manufacturers employed 700,000 workers while the
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