Abstract
In 1987, the Brazilian government's decision to deny licensing of Microsoft's MS-DOS operating system led to the imposition of U.S. trade sanctions. This article examines the implications of the MS-DOS case for understanding the role of the state in newly industrializing countries and its relationship to local and foreign capital. It assesses the relevance of dependency theory, identifying its major contribution as the analysis of the structural conditions that affect the prospects for state action. Brazil's position of trade dependency created a convergence of interests between local exporters and the U.S. government that eventually changed the direction of Brazilian informatics policy.
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