brazil country report

Brazil

Group : A7

About Brazil and Brazilian Official name – Federative Republic of Brazil Population – 196,342,227* Official Language – Portuguese Currency – Brazilian real (BRL) Capital – Brasilia GDP – purchasing power parity $1.836 trillion* GDP Per Capita – $ 10,100 (2008) Religions:  Roman Catholic (nominal) 80% Language : Portuguese is the most spoken

language, but English and French are also spoken Government:  Multiparty Federal Republic

Source: www.ciafactbook.com

Culture of Brazil• Brazilian culture is a culture of a very diverse

nature

• An ethnic and cultural mixing occurred in the colonial period between Native Americans, Portuguese and Africans formed the bulk of Brazilian culture

• In the late 19th and early 20th centuries Italian, German, Spanish, Arab and Japanese immigrants settled in Brazil

• Brazil was a colony of Portugal for over 3 centuries

• For that reason, Brazil also holds Amerindian influences in its culture, mainly in its food and language

• Brazil has the largest Catholic population in the world.

• Carnival in Rio de Janerio, as it is known in Brazil, is an annual celebration held forty days before Easter and marking the start of Lent.

Contd…….

Greetings• First names should normally be used, but titles are

important and terms like ‘Doctor’ can be used.

• If we don’t know their professional titles, the term “Senhor”[Mr.] & “Senhora”[Mrs.].

• When we meet somebody in Brazil expect a firm handshake and for longer time.

• Both men and women greet women with a kiss on each cheek.

• On departure you should repeat all the handshaking and kissing.

Meeting Etiquette• Conservative European dress code is the norm for all

meetings in big cities.

• As a foreigner, try to always be on time however as this will be expected of you.

• Never start into business discussions before your host does.

• Business meetings normally begin with casual 'chatting' first.

• Avoid confrontations. It is best not to appear frustrated with your Brazilian colleagues.

Contd….

• Do expect interruption, while a important discussion is going on.

• Don’t bring topics like crime, corruption, deforestation etc as these are sensitive issues at the moment.

• Bring plentiful supply of business cards, since Brazilian tend to be very keen about exchanging them.

Dress Code• Brazilians pride themselves on dressing well.  • For Men

– Wear conservative, dark colored business suits. Three-piece suits typically indicate that someone is an executive.

• For Women – – Wear suits or dresses that are elegant and feminine

with good quality accessories. Manicures are expected.

• Jeans are often unacceptable as they are considered too casual, however this depends on the industry.

Communication Style & Eye Contact

• Communication Style:– Communication is often informal and does not rely

on strict rules of protocol. – Anyone who feels they have something to say will

generally add their opinion. – Brazilians tend to be direct in most situations.

• Eye Contact:– Brazilians favor direct eye contact over indirect.– While conversing they will constantly stare, they

associate steady gaze with sincerity.

Gestures• Gently pulling the lower eyelid down can indicate "watch

out, be careful” or "do you think I'm stupid enough to believe that?"

• Thumbs up means OK, cool, positive, good-luck, thanks, you're cool, I agree. Thumbs down means the opposite.

• Pretending to suck your thumb means that one has been left out or is disappointed.

• The "OK" sign made by joining the index finger to the thumb in the shape of a ring is also inappropriate.

• You should expect friendly pats on the back.

Socializing & Entertainment• Formal lunches and dinners have always been a part

of doing business in Brazil.

• Brazilians do not arrive on time for social functions.

• Sometimes it is easier to invite a senior contact for a meal than for a meeting at the company.

• Keep the conversation at the social level and if business is to be discussed, wait until the coffee is served.

• If you are to a Brazilian home, consider it rare honour.

Business Negotiations• Expect a great deal of time to be spent reviewing

details.

• Often the people you negotiate with will not have decision-making authority.

• Use local lawyers and accountants for negotiations as Brazilians resent an outside legal presence.

• Brazilian business is hierarchical and decisions are made by the highest ranking person.

• Brazilians negotiate with people, not companies.

• It will probably take several trips to bring the negotiations to satisfactory conclusion.

• Do not change your negotiating team or you may have to start over again from the beginning.

• One should always place an emphasis on increased power and status to the Brazilians, rather than money.

• Never leave a meeting as soon as it gets over.

• A document aren’t signed immediately after an agreement is reached; a hand shake and person’s are considered sufficient.

Gift Giving• Do not give any thing that is obviously expensive as

it will cause embarrassment or be misinterpreted as bribe.

• Do give gifts of liquor, books, or nice pens.

• Do give gifts to children.

• If you did not bring a gift to the hostess, flowers the next day are appreciated.

• Gifts are usually opened when received.

Contd…• Gifts to Avoid

– Avoid giving anything purple or black as these are mourning colors.   

– Gifts of knives, scissors, or letter openers are interpreted as the severing of a close bond. Handkerchiefs are also associated with funerals, so avoid giving them.

– Avoid practical gifts, since they may be perceived as too personal. For example, avoid wallets, key chains, ties, sunglasses, jewelry and perfume.

Brazilian Business Etiquette• DO be patient. Brazilians negotiate slowly.

• DO impress your Brazilian business associates by staying in a nice hotel.

• DO expect to be invited to have a drink after work.

• DO discuss soccer (football), the beach, and Brazil's growth as a country.

Contd…• Don’t discuss Argentina, religion, the Rainforest, and

Brazil's class system

• Don’t ask personal questions, such as questions about age, salary, or marriage

• Don’t speak Spanish with a Brazilian

• Don’t simply rely on e-mails to give information, follow things up with the phone call or meeting personally

• Don’t rush business with your Brazilian colleagues and avoid pressing for final decisions

Business Obstacles

Top Ten Products Imported by Brazil – 2008

PRODUCTS

Trade Value

(US$ thousands)

SHARE

(%)

GROWTH

(% 5yr)

Motor Vehicle Parts 3,339,117 1.44 96.76

Television, Radio & Accessory Parts 3,228,436 1.39 280.32

Aircraft Parts 1,971,689 0.85 104.83

Passenger Vehicles 1,879,423 0.81 153.52

Computer & Office Machines Parts 1,850,779 0.80 130.03

Petroleum Gases 1,784,707 0.77 231.94

Medicines in Doses 1,623,772 0.70 78.47

Aircraft 1,498,628 0.65 (11.86)

Non Crude Oil 1,488,253 0.64 36.95

Parts For Fork Lifts, Bulldozers & Graders 1,382,639 0.60 139.58

18%

17%

11%10%10%

10%

9%8%

8%

Top ten Brazil’s ImportsMotor Vehicle Parts

Television, Radio & As-sessory Parts

Aircraft Parts

Passenger Vehicles

Computer & Office Machines Parts

Petroleum Gases

Medicines in Doses

Aircraft

Non Crude Oil

Parts For Fork Lifts, Bull-dozers & Graders

PRODUCTS

Trade Value

(US$ thousands)

SHARE

(%)

GROWTH

(% 5yr)

Iron Ores & Concentrates 14,397,850 3.67 259.75

Crude Oil 7,208,820 1.84 609.38

Soybeans 6,214,344 1.58 87.34

Passenger Vehicles 4,208,285 1.07 112.86

Soda & Sulfate Chemical Woodpulp 3,387,592 0.86 142.43

Cane Sugar 3,343,046 0.85 116.37

Coffee 3,026,899 0.77 125.26

Chicken 2,709,649 0.69 146.87

Soybean Meal 2,699,448 0.69 10.99

Motor Vehicle Parts 2,598,678 0.66 117.08

Top Ten Products Exported from Brazil – 2008

Brazilian Embassy in Mumbai

Top Ten Exports of Brazil

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2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000 Trade Value(in US $ '000)

Trade Value(in US $ '000)

Top Ten Brazilian Imports From India -2008

Main Products Trade Value(US$ thousand)

Diesel Oil 15,24,698

Coke of Coal 1,08,488

Generating Sets Wind-powered 1,07,184

Single Cotton Yarn of Combed fibres (85%) 99,038

Other heterocyclic compounds 75,386

Textured Yarn of Polysters 71,188

Fuel of Turbine Aviation 58,229

Single Polyester Yarn 56,124

Polypropylene Yarn 40,526

Medicines 36,367

Brazilian Embassy in Mumbai

1524698

108488

10718499038

7538671188

58229

5612440526 36367

Top Ten Brazilian Imports From India

Diesel Oil

Coke of Coal

Generating Sets Wind-powered

Single Cotton Yarn of Combed fibres (85%)

Other heterocyclic compounds

Textured Yarn of Polysters

Fuel of Turbine Avia-tion

Single Polyester Yarn

Polypropylene Yarn

Medicines Brazilian Embassy in Mumbai

Potential Trade• We recommend to Export Cell phones, Video

Recorders and Radio Transceivers

• India at present exports these products to other nations apart from Brazil.

• It gives India, trade value of US $2,94,627,000 which forms 0.10% of the total exports and has a growth rate of 1875.23%

• Moreover Brazil has a huge demand for them, and gives a trade value of US $ 3,228,436 which forms 1.39% of their total imports and has a growth rate of 280.32%

Growth rate over a period of 5 years Brazilian Embassy in Mumbai

Cont…..• We also recommend to trade Ball & Roller Bearings

with Brazil

• It gives India, trade value of US $ 201,036,000

which forms 0.07% of the total exports and has a growth rate of 209.76%.

• Brazil is huge into importing industrial and infrastructure related goods, and there is a big market with relation to bearings that we can try to capture.

• It gives Brazil a trade value of US$ 3,85,309(‘000) which forms 0.17% of the total imports and has a growth rate of 93.62%