Business Etiquettes and Practises in South America

Business Etiquettes and Practices in South America

-- Group III2-Vaibhav Awasthi 3-Govind Singh 56-Sachin Sharma 68-Jatinder Pal Singh 80-Anshul Gupta 81-Puneet Piyush

2Source: Directorate General of Commercial Intelligence and Statistics, Ministry of Commerce and Industry, Govt of India

South America relies heavily on the exporting of goods and natural resources

Brazil is the seventh largest economy in the world and the second largest in America.

Brazil has a total amount of exports at $137.8 billion dollars

Chile has $58.12 billion and Argentina $46.46 billion

Key Info

India & South America

Country Imports from India(in Rs lakhs, during April to Aug ‘09)

Brazil 329580

Colombia 71422

Chile 57699

Argentina 46164

Peru 39123

Chile

Independence from SPAIN on February 12, 1818 German immigration in 1848 influenced ethnic composition Military dictatorship (1973–1990) government sold many state-owned companies Steady growth and reduced poverty rates by sound economic policies Privatization by democratic governments since 1990 Currently, Chile is one of South America's most stable & prosperous nations with

technologically avid people. Chile is strongly committed to free trade with high FDIs 80% of FDI to electricity, gas, water and mining sectors The Constitution provides freedom of religion World class industries in Copper Mining, Forest products, Fruit, Fishing and Salmon One of the best places to invest and do business in all of Latin America.

stable economy, very low inflation

Language SpanishPopulation 17 millionGDP growth 5.1% in 2007

Key Info

Source: Press 3

Chilean Business

Conservative and honest- Hard-sell techniques are not appropriate

Well versed in international business and technology, well travelled, well-educated, and quite sophisticated. 

Dominated by small cliques of company owners centred around business associations.

At the individual level, Chilean companies are fairly rigid in their hierarchy

Source: Press 4

Chilean Business People Customs

Two surnames on business cards -the father's first and then the mother's.

Proud of Chilean wine and the natural beauties of Chile Slow business activities in January and February Jobs available if you no someone in company “JUGAAD” Do not answer e-mails, faxes, letters or phone calls promptly. Less punctual Highest rates of working hours in the world Clearly established hierarchy in companies It is illegal to work in Chile on a tourist visa though many

foreigners find temporary work

Source: Press 5

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Brazil – Certain Key Facts Type of State Federal Republic based on

parliamentary documentary

Type of Economy 15th largest world economyUpper- Middle Income EconomyEmerging Financial Market

Human development Index Rank 70th/177

Political Stability Stable with friendly relations with all western countries

Top Business Centres Sao Paulo, Rio de Janeiro, Brasília and Belo Horizonte

Ethnic groups 55% whites, 38% mixed white and black, 6% black, 1% others

Business Language Portuguese followed by Spanish

Market 5th largest market oppurtunity after China, India, Indonesia , USA

Source: Press

Brazilian Social Culture

Fusion of Portuguese, African and indigenous Indian influences, resulting in a rich, distinct culture

Famous for hospitality, openness and colorful and rhythmic events such as Carnival

Family-

Collectivist Society

Large and Close knit families

Most business are family run

Relationships

People spend time knowing each other personally and professionally

Time -

Relaxed and Flexible manner

Punctuality and Precise plans are not common

Life and Business run at slow pace leading to delayed negotiations and deals

Meetings are also delayed and cancelled without any prior warning.

Source: Press 7

Brazilian Business Culture

Schedule business appointments at least two to three weeks in advance Brazilians love socialising and spending time with each other Brazilians are quite fashion conscious. It is important therefore to dress

smartly and conservatively Business Practises

Handshakes while greeting business colleagues. Addressing brazilian counterpart with their title and surname . Hiring middleman, to help in business dealings making eye contact shows you are paying attention, interested and honest.

Brazilian companies vertical hierarchies managers at the top make most of the decisions. Top positions mostly dominated by men

Source: Press 8

9Source: Press

Official Language: Spanish; Business Languages: Spanish and English

Currency Used: Colombian Peso

Business Scenario: An inviting country to international investments and business opportunities

• Companies are family owned

• Communication tend to be in an indirect and subtle manner. It is important to not offend others and always be as diplomatic as possible

• Meaning is conveyed through non-verbal forms of communication and often a Colombian will say ‘yes’ or ‘maybe’ instead of saying ‘no’ to avoid losing face and maintain harmony

Business lunches are a favourable method of conducting business in Colombia and often go on for several hours

Key Info

Colombia

10Source: Press

Handshakes are the most common form of greeting. Offering your hand upon arrival as well as departure is an essential part of Colombian culture

Titles are important and frequently used when addressing someone

• Since first names are generally only used with family and close friends, one should wait until invited to address someone in this way

• Titles are important and should be used to show respect to those with authority, especially elder and more senior members of the group

Business negotiations are generally a lengthy process

• It is imperative not to rush this process and take the time to continue developing relationships for negotiations to be successful

Business Practices

Colombia

11Source: Press

Business Etiquette (Do’s and Don’ts)

Colombia

Do’s Don’ts

Expect to spend a lot of time getting to know your business counterparts before any business takes place

Rush business dealings with your colleagues and avoid pressing for final decisions

Translate all your marketing literature, business cards and any other documents you present in your business dealings into Spanish. Failure to do so may jeopardise your business potential

Be overly aggressive while negotiating business deals, as it is considered rude and often perceived as arrogant

Accept invitations from your Colombian business counterparts to social or business occasions as these are an ideal time to develop relationships

Ignore formal Colombian dining etiquette as this will reflect poorly on you as an individual and will also negatively impact any business dealings in Colombia

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Argentina– Certain Key Facts

Type of State Federal Presidential republic

Type of Economy Upper- Middle Income EconomyEmerging Financial Market

Human development Index Rank

49th/177

Political Stability Stable with friendly relations with all western countries

Top Business Centres Buenos aires,

Ethnic groups 85% Europeans, 13% mixed ethnic origins and 2% Amerindians.

Business Language Spanish , contractual documents need to be in Spanish

Business culture History of turmoil and unrest , more focus on quick wins and personal relations

Source: Press

Argentina Business Habits

A state conscious society ,extreme hierarchy, published organization chart may not reflects the actual structure .

Boss act like boss, yet deep interpersonal relations exist

Clear instructions. Greater emphasis on the spoken word. Don't rely solely on email message — follow up with a phone call.

It is difficult to arrange meetings too far in advance , which begin with small talks.

Less pre-meeting preparation. Flexibility of thought and action are valued

Free debate viewed positively .Express opinions strongly.

Source: Press 13

Argentina Business Habits

Noisy meetings , frequent interruptions and extensive use of gesture and exaggerated body language.

Tough negotiations, no easy concessions , Good relationships helps

Dress is very important for making a good impression Maintain eye contact, do not be put off if people stand in

close proximity to you . Business meals as social situation, Essential Good

table manners following the European convention Avoid issues such as past political problems, South

American levels of poverty or the Falklands/Malvinas.

Source: Press 14

PERU

Source: Press 15

ABOUT COUNTRY

Total Population: 27,898,182 Annual growth rate: 1.1% Density: 22 inhabitants/km² Main Cities: Lima (Capital), Arequipa, Trujillo,

Chiclayo, Piura. Languages Spoken: Spanish, Quechua (Mostly spoken) Aymara and English. Religion: Catholics 93%, Protestants 5%, Others 2%. Literacy rate: 87.9%

Type of State: Republic based on parliamentary democracy. Type of economy: Lower-middle-income economy, Emerging Financial Market.

Agricultural, mining and tourism activities are the dominant sectors.

Source: Press 16

Peru

BUSINESS CULTURE AND ETHICS

Peruvians have a relatively flexible approach to time so don’t be surprised if business meetings or social functions begin late. Keep a few hours open for appointments.

Peruvians place a high emphasis on relationship building. Cultivating friendships will help to be more successful in the business world in Peru.

Decisions and ideas are often generated at the top so it’s important to schedule meetings with high level managers.

Business in Peru is conducted mostly in Spanish. Thus, it is wise to bring an interpreter to meetings if you do not have a proficient knowledge of the language.

Love for oneness, for country. Eg: Coca Cola, after years, could not hold major share in soft drink market. Inca Kola, local soft drink, always had majority market share.

Source: Press 17

Peru

Peruvians prefer to go on holiday between January and March. So do not plan business meetings during these months.

Peruvians prefer to knit their private and professional lives together. So, don’t get surprised if they ask you things about your family or personal life which you may consider to be private.

A handshake is the standard greeting. Business attire is formal and professional but conservative.

Do address your Peruvian business colleagues with the appropriate title. If you are unsure of the exact title, it is important to use “Señor” or “Señora” followed by his or her father’s surname, as opposed to using the entire name.

Remember to keep your hands on the table during dinner functions. Do not bring a set of knives as a gift or any gift that comes in odd numbers to your Peruvian counterparts.

Do not use your index finger to beckon someone to come closer as this is considered rude.

Peru (Cont’d)

BUSINESS CULTURE AND ETHICS

19Source: Press

Holiday and Business hours

Punctuality

Small talk

Gestures

Attire

Greetings and names

Business Etiquettes

South America

Thank you

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