What are the reasons for multinationals to be based in a South American Mega Cities like Sao Paulo, Brazil?

Question

Apart from outsourcing, cutting costs and labour, what other reasons are there?

Answer 1

the Brazilian government offers nice incentives to overseas firms which bring in much needed foreign currency, and creating jobs for Brazilians. It is not only happening in Brazil, but Worldwide saving these massive conglomerates huge fortunes in tax

Answer 2

Typically multi-national companies arrange their affairs to minimise Tax. Where they Register effects their overall level of operations across the world .. an example is shipping - if you Register in UK, all your ships and crews must meet UK standards .. if you Register in Panama you can more or less do what you like (of course your ships still have to meet the standards of the countries where you wish to operate from .. but in many cases these are well below UK standards - and so long as the ship never visits a UK port there is nothing the UK Government can do about it)

So it makes sense to avoid countries that have high levels of corporate taxation .. (or unstable / left wing / Socialist Governments that might try to 'nationalise' them or slap them with an 'excess profits' Tax or otherwise levy charges/fines or prosecutions for their activities across the world etc. :-) )