DOING BUSINESS IN BRAZIL
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1 DOING BUSINESS IN BRAZIL
2 BRAZIL
3
4 Quick Facts Demographics Population :203,429,773 Area: 3.3 million square, slightly smaller than USA Capital: Brasilia, 2.5 million Government: Federal Republic Major Cities: São Paulo, Rio de Janeiro, Belo Horizonte, Salvador, Fortaleza, Curitiba, Recife, Porto Alegre Life expectancy at Birth: 72 years Literacy Rate: 88% Religion: Roman Catholicism and Protestantism Language: Portuguese
5 Quick Facts Economics: Total GDP: $2.17 trillion GDP Growth Rate: 7.1% GDP Composition: 67.4% Services, 26.8% Industry, and 5.8% Agriculture. Public Debt: 59% of GDP Unemployment: 6.7% Tax Weight: 23.2% of GDP
6 Brazilian Culture, Customs & Society FUTEBOL = SOCCER CAPOEIRA
7 Cultural Awareness The language of this country is Portuguese. Make an effort to learn different words and phrases--don't worry about making mistakes. Brazilians will appreciate your efforts even if your vocabulary is limited. Brazilians are not Hispanics and they will take offense if addressed in Spanish. Do not assume they should speak and/or understand Spanish just because they are in South America. Family: The family is the foundation of social structure. Individuals create their networks based around family. Nepotism is considered a positive reality. Class Structure: There is a clear class structure in Brazil. There are extremely wealthy, a significant middle class, and a large lower class.
8 Cultural Awareness Greetings: Men shake hands. Women kiss on the cheek. Hugging and backslapping are expected among friends. Timeliness: Arrive approximately 30 min. late when invited to a home. Although Brazilians are very reticent about their own personal lives, they may nevertheless ask intrusive questions about your income, religion, and marital status. If you don't want to reveal this information, remain polite but give a vague, indirect, answer. Brazilians also consider themselves Americans. Consequently, don't use the phrase 'in America' when referring to the United States.
9 Population Diversity Brazil boasts the largest population in Latin America & the fifth in the world. A global melting pot, Brazil is a blend of early and recent immigrants from Portugal, Africa, Europe, the Middle East, & Asia. Over 80 percent of the population lives in urban areas, predominantly in the south. Brazil has one of the most advanced & diverse industrial sectors in Latin America, including automobiles and parts, machinery and equipment and textiles. This vibrant country has earned a reputation as a leader in environmental responsibility with companies at the leading edge of leveraging environmental programs to gain competitive advantage. About 90 percent of large companies, mostly with ties to multinational groups, had instituted environmentally responsible programs by 2004.
10 Places to Travel Rio de Janeiro Recife Foz do Iguaçu Santa Catarina
11 International Trade In 2010 Brazil exported approximately $201 billion and imported $181 billion. Brazil s largest export partners are China 12.5%, US 10.5%, Argentina 8.4% and Netherlands 5.4%. Brazil s largest import partners are US 16.1%, China 12.6%, Argentina 8.8%, Germany 7.7%, and Japan 4.3%. Main exports are transport equipment, iron ore, soybeans, footwear, coffee, auto. Main imports are machinery, electrical and transport equipment, chemical products, oil, automotive parts, electronics. Brazil signed a trade and economic cooperation agreement with the US in March of 2011.
12 International Trade Top US exports to Brazil include: Civilian Aircraft ($5.5 billion) Organic Chemicals ($2 billion) Computer Accessories ($1.8 billion) Plastic Materials ($1.5 billion) Telecommunications ($1.2 billion) Top US imports from Brazil include: Crude Oil. ($7.9 billion) Steelmaking Material ($2.5 billion) Complete Civilian Aircraft ($2.2 billion) Semifinished iron/steel ($962 million) Pulpwood ($857 billion)
13 Business in Brazil Starting a Business in Brazil can be a daunting task. For your business to succeed you must have competent local business contacts. Introductions from mutual acquaintances are very important. Have someone call Brazil before you go or carry a letter of introduction with you. Relationships are important. Who they are doing business with is arguably more important than what business they are conducting. The office secretary is the person to ask questions of, regarding office procedures, dress code, and any other help you may need when you first arrive. Treat her with respect and kindness and she'll be your best friend. Make appointments of any kind at least two weeks in advance. Showing up at an office without an appointment is unacceptable in Brazilian business culture.
14 Business in Brazil Never rush into the business discussion. Allow for the Brazilians to bring up the business topic. "Getting straight to the point" is something Brazilians find quite offensive, so don't be aggressive. Brazilians will be in the midst of terribly important negotiations doing what Americans might think of as "unnecessary socializing." Remember that doing business IS a type of social interaction in Brazil. People need to get acquainted and comfortable with each other before getting down to business. If your Brazilian counterparts have reservations about you, this attitude will not be overcome by presenting them with impressive charts, graphs, or other empirical data. Instead, you will have to effectively use your personality, cultural awareness, and other interpersonal skills to win your Brazilian counterparts over to your side.
15 Business in Brazil Face to face meetings are always preferred. Maintain steady eye contact at all times; it is considered impolite to break eye contact. Poor punctuality is characteristic of Brazilian business culture. You will have to accept that waiting around for your Brazilian counterparts will be part of doing business here. Also, traffic in the main cities is chaotic and most of the time is responsible for the delays. Always arrive on time for a business meal or meeting at a restaurant. Usually, Brazilian business protocol demands punctuality on these occasions. Business meetings can be changed on short notice. It is important to schedule, confirm and remind about a business meeting.
16 Business in Brazil Shake hands when you first meet your business associates. Afterwards, you may get kissed on the cheeks by males and females alike, if you're a woman, and by females, if you're a guy. People stand closely in front of each other, even when talking. Brazilians are a gregarious people and as such they like proximity, but they are knowledgeable of the customs of other countries. Placing an emphasis on increased power and status, rather than money, is sometimes an effective negotiating strategy. Attempting to direct or monopolize a conversation is impolite.
17 Business in Brazil Brazil s legal system is much more bureaucratic than most countries due to the peculiar legal, cultural, and especially bureaucratic characteristics of Brazil. Brazilians tend to be very fast talkers; expect any conversation to be fast-paced. It just seems faster; it is the same if you are talking to a foreigner. It is normal for a conversation to be highly animated, with frequent interruptions, exclamations of 'no!', and a tremendous amount of physical contact. This is very true, as they really do listen and not pretend to listen. Don't be alarmed if some of the interjections sound confrontational; this is simply a good-natured way of expressing interest in what is being discussed.
18 Business in Brazil During negotiations, avoid confrontations and mask frustrations. Keep criticism to yourself. You do not want to embarrass anybody in the group. Anyone can add their opinion to a group discussion. There is no predetermined protocol. Decisions are often made at the higher level. You will not always be dealing with the decision maker. Business cards are handed out at the beginning of meetings. Good visuals are considered an important part of any presentation.
19 Clothing Suggestions Wardrobe options for women: conservative dresses, suits, pantsuits, skirts, and blouses. While you should dress conservatively, strive for an elegance. Remember that Brazilians are very fashion-conscious and follow European styles. Wardrobe options for men: just like with women, you want to look fashionable and stylish. Invest on the best suit you can afford with a European design and cut and a good-looking silk tie - one that shows you're a man of good taste. Do not under any circumstances wear a tie with a short-sleeved shirt.
20 For More Information CIA World fact book Brazil. World Bank. Doing Business in Brazil. zil Heritage Foundation, Index of Economic Freedom, Brazil. Brazil Trade and Investment Promotion Agency. Brazilian Consulate in Atlanta 3500 Lenox Road, Suite 800 Atlanta, GA Phone: (404)
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