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Dells Dilemma

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Submitted By classiclady
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Dell should try to renegotiate the terms that they had made with the previous governor, Antonio Britto. Reasons being that Pólo went to great lengths to attract Dell to Rio Grande do Sul. The whole point of attracting Dell was because of focusing on higher technological investments to the states market. Rio Grande do Sul has the highest education in all of Brazil, and has the most universities with degrees in Computer Science and Electrical Engineering. With the education set in stone in the electronic industries it only makes it right to continue to invest in Dell which will provide the state with higher paying jobs. There are many players involved such as Duane Kirkpatrick who is in charge of the international operations of the top investment banks in high-technology in the world; the top three local companies Gerdau, a steel conglomerate, Ipiranga, a gasoline distribution firm, and Rede Brasil Sul de Comunicacoes (RBS), a media company. In all Brazil as a whole would be beneficial to Dell in the Latin American market because of its economy being the biggest out of all Latin countries, and there is significant land to be built on and resources for making the computers. Time, which is a big factor, is the only thing lost out of renegotiating. But in the long run investments in Rio Grande do Sol would benefit Dell. After the fall out with Ford I'm more than certain that the new governor Olivio Dutra wouldn't want to have another loss from a multimillion dollar company. Which brought bad publicity and loss of jobs that were promised to local workers. Not only would Dutra get even more bad publicity but the contract that was negotiated with Dell he would lose in the long run the promised 260 direct employees in the first year and the 700 employees within the next five years which would cause more protest and maybe an overthrow of the new governor.

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