This thesis concerns the environment of Foreign Direct Investment in Brazil with the purpose of determining the biggest hurdles and incentives for establishing a business in the country. The study is analysed in the context of the Diamond model of national wealth, first introduced by Porter (1990) and is based on secondary source research and data. The main motives are outlined as resource-seeking, market-seeking and non-marketable asset seeking and assessed by using a number of determinants that is commonly used when investing whether a country is competitive in role of attracting investments from abroad. Found was that Brazil has a competitive advantage in terms of market size and a population growing purchasing powers that stems from recent economic growth. The main obstacle for Brazil is now to regain economic stability since the country currently is undergoing recession and invest in infrastructure which is currently one of the largest barrier for foreign (and domestic) businesses.