By Lieven Cooreman. Doing Business in Brazil AGENDA BRASILIDADE BRAZILIAN AND BELGIAN FACTS AND FIGURES MACRO REGIONS OF BRAZIL: OVERVIEW BRAZILIAN AND.

By Lieven Cooreman

Doing Business in Brazil

AGENDA

BRASILIDADE

BRAZILIAN AND BELGIAN FACTS AND FIGURES

MACRO REGIONS OF BRAZIL: OVERVIEW

BRAZILIAN AND BELGIAN FACTS AND FIGURES

BRAZIL´S PERFORMANCE

BRAZIL´S KEY CONCEPTS

DOING BUSINESS IN BRAZIL

WORKING PRACTICES IN BRAZIL

STRUCTURE AND HIERARCHY IN BRAZILIAN COMPANIES

BUSINESS PRACTICES IN BRAZIL

BRAZILIAN BUSINESS ETIQUETTE (DO´S AND DONT´S)

FINAL CONSIDERATIONS

What is

?

isThe distinct features of

the brazilian and of Brazil.

know

A bit about

Next...

THE CULTURE

Indians | Pedro Álvares Cabral´s ship

April 22, 1500 | Porto Seguro (BA)

Nossa Senhora Aparecida do Brasil Church, SP

74% of Brazilian are Catholic

Reveillón in Copacabana, RJ

678 thousand of direct jobs

5 million of foreign tourists vs 4 billion of dollars spent

Oscar Niemeyer, Architect, 101 years old

One of the most important names in International Modern Architecture. His buildings are in Brasília, and abroad: UNESCO World Heritage, The United Nations Headquarters in NY, among others.

Feijoada, typical dish (stew of beans with beef and pork)

In Brazil, its served with rice and accompanied by chopped refried collard (couve mineira), roasted coarse flour (farofa), sliced orange and pork rinds (torresmo).

Jorge Amado, Writer One of his famous film

He was the best-known of modern Brazilian writers. His work dealt largely with the poor urban black and mulatto communities of Bahia.

Sculpture of Aleijadinho

He was a Colonial Brazil-born sculptor and architect, noted for his works on and in various churches of Brazil.

Brazilian music

Style popularized by Tom Jobim and Vinicius de Moraes.

Evolved from samba but is more complex harmonically.

Pelé, Soccer Player

Has become a sporting legend. He made 1280 goals in 1363 games. His 1st goal was with 16 years old against Argentina in 1957.

He is regarded as one of the greatest drivers in the history of Formula One. He held the record for most pole positions from 1989 to 1994.

Airton Senna, Race Car Driver

She modernized the role of the president´s wife and left a profound mark on Brazilian social policy.

Ruth Cardoso, Anthropologist

She is the highest-paid model in the world. She has appeared on more magazine covers than any other model.

Gisele Bundchen, Model and Film ActressHe has a successful international career, having joined the cast of Lost, The movie 300 and nowadays the movie CHE, El Argentino.

Rodrigo Santoro, Actor

LOCATION

Land area: 8.514.876 km²

Population: 195m

Population density: 21 km²

Life expectancy: Men 68yrs | Women 76yrs

Adult literacy: 88%

Average per household: 3.5

Divorces per 1,000: 0.5

BRAZILIAN FACTS AND FIGURES BELGIAN FACTS AND FIGURES

Land area: 30.520 km²

Population: 10m

Population density: 337 km²

Life expectancy: Men 76yrs | Women 83yrs

Adult literacy: 99%

Average per household: 2.4

Divorces per 1,000: 2.4

BRAZILIAN FACTS AND FIGURES BELGIAN FACTS AND FIGURES

Currency: Real

GDP 2008: US$ 1.9 trillions

GDP per capita: US$ 6,937

Employment (% of total):

Main Exports (Type):

Transport equipment & parts, Soyabeans

Metal goods and Chemical products

Destinations (% total):

Agriculture18%

Industry20%

Services 53%

Unemployed9%

USA21%

Argentina8%

China6%

Netherlands6%

Others59%

Currency: Euro

GDP 2008: US$ 389.518 billion

GDP per capita: US$36,235

Employment (% of total):

Main Exports (Type):

Chemicals, Transport equipment,

Machinery, Food, drink and tobacco

Destinations (% total):

Agriculture2%

Industry

23%

Services68%

Unemployed7%

Germany15%

France13%

Netherlands9%UK

7%

EU56%

BRAZILIAN FACTS AND FIGURES BELGIAN FACTS AND FIGURES

Main Imports (Type):

Machines & electrical equipment

Chemical products

Oil derivatives

Transport equipment & part

Main countries of origin:

USA

18%

Arg9%

Germany8%

Japan6%

Others59%

Main Imports (Type):

Food and animals

Machinery

Transport equipment

Chemicals

Food, drink and tobacco

Main countries of origin:

Netherlands15%

Germany13%

France10%UK

5%

EU57%

MACRO REGIONS OF BRAZIL: OVERVIEW

North

Northeast

Centralwest

Southeast

South

Economy Data

GDP (2008) – US$ 1.9 trillions

10th world´s largest economy

GDP Per Capita – US$ 6.937

Portion of GDP per states

11%

63%

16%

5%

5%

NORTH REGION

ACRE

RONDÔNIA TOCANTINS

PARÁAMAZONAS

RORAIMAAMAPÁ

15,022,060: population

GDP - US$ 100 billions

3.853.327,2 km²: total area

US$ 3,044 (Per Capita)

Contributes with a minor GDP

MAIN ACTIVITIES:

EXTRACTION

LÁTEX

MINING EXPLOITATION

IRON

VEGETAL PLANTATION

AÇAÍ

NORTHEAST REGION

51,609,027: population

GDP - US$ 200 billions

1.554.257,0 km²: total area

US$ 2,310 (Per Capita)

MAIN ACTIVITIES:

EXPLOITATION

OIL

TOURISM

In SALVADOR

PRODUCTION

SUGAR

RIO GRANDE DO NORTE

PARAÍBA

PERNAMBUCO

BAHIA

MARANHÃOCEARÁ

PIAUÍALAGOAS

SERGIPE

*More than 1 billion inhabitants.

CENTRAL-WEST REGION

13,269,517: population

GDP - US$ 100 billions

1.606.371,5 km²: total area

US$ 6,136 (Per Capita)

MAIN ACTIVITIES:

CATTLE BREEDING MINING

MANGANESE

TOURISM

In PANTANAL

* COUNTRY´S FEDERAL CAPITAL

MATO GROSSO

GOIÁS

DISTRITO FEDERAL

MATO GROSSO DO SUL

SOUTHEAST REGION

77,857,758: population

GDP - US$ 1,2 trillions

924.511,292 km²: total area

US$ 6,499 (Per Capita)RIO DE JANEIRO

ESPÍRITO SANTOS

MINAS GERAIS

SÃO PAULO

SOUTHEAST REGION

41,055,734: population

GDP - US$ 750 billions

248.808,8 km²: total area

US$ 10,787 (Per Capita)

SOME OF THE MAIN ACTIVITIES:

BOVESPA AUTOMOTIVE

INDUSTRY

PRODUCTION

ETHANOL

IT´S AMONG THE 5 MAJOR METROPOLITAN AREAS IN THE WORLD.

US$ 2.5 billions

Daily trade volume Sugarcane

SÃO PAULO

SOUTHEAST REGION

15,561,720: population

GDP - US$ 275 billions

43.696,0 km²: total area

US$ 7,434 (Per Capita)

MAIN ACTIVITIES:

SIDERURGICAL PETROLEUM

INDUSTRY

TOURISM

CARNIVAL

THE 2ND MOST RICHEST STATE OF THE COUNTRY.

INDUSTRY

RIO DE JANEIRO

Vale do Rio Doce Petrobrás

SOUTHEAST REGION

19,479,356: population

GDP - US$ 130 billions

588.383 km²: total area

US$ 4,206 (Per Capita)

SOME OF THE MAIN ACTIVITIES:

STEEL SIDERURGY MINING

MINAS GERAIS

GOLD

SERVICE SECTOR: 47.1% of the GDP

INDUSTRIAL SECTOR: 44.1% of the GDP

Usiminas

Rio Paracatu

INVESTMENT: MUS$ 550

PRODUCTION INCREASE OF 5,4 ktpy TO 17,2 ktpy

200 NEW JOB POSITIONS

SALES: MUS$ 280

IN NOV 2008

SOUTH REGION

26,729,883: population

GDP - US$ 300 billions

575.315 km²: total area

US$ 5,549 (Per Capita)

SOME OF THE MAIN ACTIVITIES:

AUTOMOTIVE WINE PRODUCING

INDUSTRY Miolo, RS

RIO GRANDE DO SUL

SANTA CATARINA

PARANÁ

Volkswagen

VEGETAL EXTRACTION

WOOD (Pinheiro do Paraná)

BRAZIL´S PERFORMANCE

BRAZILIAN BALANCE OF PAYMENTS - 2001/07In MUS$

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

2001 2002 2003 2004 2005 2006 2007

Exports Imports Balance

BRAZIL´S PERFORMANCE

MAIN PRODUCTS OF EXPORTS

(% OF TOTAL) – 2001/07

MAIN PRODUCTS OF IMPORTS

(% OF TOTAL) – 2001/07

TRANSPORT MAT.

MACH. AND EQUIP.

METALLURGY

SOYA

CHEMICAL

MINERALS

OIL AND FUEL

MEAT

SUGAR/ALCOHOL

SHOES/LEATHER

PAPER

COFFEE

Principais Mercadorias de Importação (% total) - 2001/07

30,7%

7,4%

5,7%

5,2%

3,8%2,7%

6,9%

16,5% 21,0%

Principais Mercadorias de Exportação (% total) - 2001/07

12,3%

10,5%

9,0%

6,4%5,8%

5,3%

5,2%

4,1%

3,7%

3,4%

2,2%

19,5% 12,6%

OTHERS

MACHINES

CHEMICAL

FUELS

TRANSP MATERIAL

ANIMAL/VEGETAL

METALS

CIENTIFIC EQUIP.

TEXTILES

COFFEE

OTHERS

BRAZIL´S PERFORMANCE

BRAZILIAN EXPORTS BY COUNTRY AND CONTINENT (% OF TOTAL) – 2001/07

BRAZILIAN IMPORTS BY COUNTRY AND CONTINENT (% OF TOTAL) – 2001/07

EUROPE

UNITED STATES

SOUTH AMERICA

ASIA

AFRICA

MIDDLE EAST

24,8%

22,0%

14,7%

4,3%

3,8%

10,3%

20,0%

OTHERS

EUROPE

UNITED STATES

SOUTH AMERICA

ASIA

AFRICA

MIDDLE EAST

25,9%

19,8%

17,0%

7,7%

3,3%6,6%

19,6%

OTHERS

BRAZIL´S KEY CONCEPTS

FAMILY RELATIONSHIPS TIME

CENTRE OF ITS SOCIAL STRUCTURE

TEND TO BE LARGE AND CLOSE-KNIT

NEPOTISM IN BUSINESS

DEPEND ON RELATIONSHIPS WITH

OTHERS

(* SUPERFICIALITY)

SPEND TIME GETTING TO KNOW THEM

KNOWING DIRECT THE RIGHT PEOPLE HELP

VERY RELAXED

PROACTIVITY

(NOT COMMON)

NEGOTIATIONS CAN TAKE MUCH LONGER

MEETINGS CAN BE DELAYED OR

CANCELLED WITHOUT PRIOR WARNING

DOING BUSINESS IN BRAZIL

CULTURAL

HERITAGEHAS BEEN INFLUENCED BY A VARIETY OF DIVERSE POPULATIONS AND CULTURES

PORTUGUESE COLONY

BECAME IN THE 16TH CENTURY AFTER IT WAS DISCOVERED BY THE EUROPEANS

LAST

DECADEBRAZIL HAS OPENED UP ITS ECONOMY TO FOREIGN MARKETS AND INVESTMENT

MORE EUROPEAN THAN AMERICAN

BUSINESS INFLUENCE (SOME ANTI-AMERICANISM NOW FADING AWAY WITH OBAMA)

WORKING PRACTICES IN BRAZIL

ALSO SERVE TO SOCIALIZE AND SPEND TIME TOGETHERMEALS

BRAZILIANS ARE QUITE CONSCIOUSFASHION

SCHEDULE 2-3 WEEKS IN ADVANCEAPPOINTMENTS

DUE TO THE CLIME, DAILY SHOWERS HIGIENE

BEND THE RULES WITH THE “JEITINHO BRASILEIRO”BUREACRACY

PORTUGUESE (SPANISH UNDERSTOOD IN BIG CITIES)LANGUAGE

WORRY ABOUT THE WATER (COOKED FOOD)

STRUCTURE AND HIERARCHY IN BRAZILIAN COMPANIES

VERTICAL

HIERARCHIES

LITTLE DELEGATION

LOW EMPOWERMENT

MEN TEND TO DOMINATE

DETERMINED BY ECONOMIC STATUS

DISCRIMINATION THERE ARE LAWS AGAINST IT

BUSINESS PRACTICES IN BRAZIL

THE MOST COMMON GREETINGHANDSHAKES

NOT TOO MUCHUSE OF TITLES

ARE PREFERRED INSTEAD OF EMAILSMEETINGS

MORE IMPORTANT THAN THE COMPANYTHE INDIVIDUAL

SHOWS YOU ARE PAYING ATTENTIONEYE CONTACT

NEVER START BEFORE YOUR HOST DOESDISCUSSION

DO ACCEPT. SAYING NO CAN BE SEEN AS INSULTINGCOFFEE

CLASS

ASSOCIATED TO SOCIAL CLASS AND ECONOMIC STATUS

ARROGANCE

BRAZILIAN BUSINESS ETIQUETTE (DO´S AND DONT´S)

IT´S BETTER TO SCHEDULE BETWEEN MEETINGSEXTRA TIME

EXPECT TO BE WHILE YOU ARE TALKINGINTERRUPTED

TOPICS: SOCCER, FAMILY AND CHILDRENGOOD CONVERSATION

DEALINGS: DON´T RUSHBUSINESS

AVOID PRESSING FORFINAL DECISIONS

IMPATIENCE OR FEELINGS: DON´T SHOWFRUSTRATION

TOPICS: CRIME, CORRUPTION, DEFORESTATION, ARGENTINA, POLITICS, POVERTY, RELIGION

BAD

CONVERSATION

DON´T MAKE IT PUBLICLYCRITICISE

FINAL CONSIDERATIONS

NORTHEAST

SOUTHEAST

US$ 2,310 (Per Capita)

US$ 6,499 (Per Capita)

FLANDERS

WALLONIA

€ 27,356 (Per Capita)

€ 19,858 (Per Capita)

BUSINESS ASPECTS:

SIMILAR IN BRAZIL (DIPLOMACY)

BUSINESS ASPECTS:

DIRECT IN THEIR SPEECH BUSINESS ASPECTS:

POOR REGION

MORE RELAXED

NOT SO RELIABLE

BUSINESS ASPECTS:

RICH REGION

MORE STRESSED

STRICT TO THE POINT

By Lieven Cooreman