Optimization of investment promotion tools for Portugal: Specific recommendations to attract investments from Germany

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Management from the NOVA – School of Business and Economics

Attracting foreign direct investments (FDI) is an important objective as it can stimulate the economic development of societies. German companies are among the largest investors in Portugal and contribute significantly to the country’s value creation. However, Portugal’s attractiveness as an investment location has been decreasing in recent years as new competitors have emerged in the global economy. This report analyzes FDI trends and determinants as well as Portugal’s relative strengths and weaknesses, identifies potential investment opportunities for German investors and makes practical suggestions to improve the country’s current investment promotion activities, focusing in particular on the automotive supplier industry.