2. LET’S TAKE A CLOSER LOOK
AT:
Background information?
What cultural differences would you encounter?
What challenges would you face in doing business in this country?
What international and economic barriers may exist that may
present a challenge when doing business in this country?
What political and national barriers exist that may present a
challenge when doing business in this country?
3. BRAZIL'S BACKGROUND:
Population: The current population estimate for
2018 is 210.87 million.
Neighboring countries: Uruguay, Argentina,
Paraguay, Peru, Bolivia, Colombia, Venezuela,
Guyana, Suriname and French Guiana.
Size: 8,515,767 km²
Climate: The climate in Brazil varies
considerably mostly from tropical north (the
equator traverses the mouth of the Amazon) to
temperate zones south of the Tropic of Capricorn
(23°26' S latitude). Average temperatures below
the Tropic of Capricorn are mild, ranging from 13
°C (55 °F) to 22 °C (72 °F).
4. WHAT CULTURAL
DIFFERENCES WOULD YOU
ENCOUNTER?
Languages spoken – Portuguese (official and
most widely spoken language)less common
languages include Spanish (border areas and
schools), German, Italian, Japanese, English,
and many minor Amerindian languages
Religions practiced – Roman Catholic 64.6%
other Catholic 0.4% Protestant 22.2%
(includes Adventist 6.5% Assembly of God
2.0% Christian Congregation of Brazil 1.2%
Universal Kingdom of God 1.0% other
Protestant 11.5%) other Christian 0.7%
Spiritism 2.2% other 1.4%none 8%,
unspecified 0.4%
Colonial Church in Racife, Brazil
5. Manners and Customs – In formal introductions Brazilians
shake hands and say their first names. In informal situations
women are greeted with a kiss near the face. Visual contact
is very important in Brazil. Brazilians have a good sense of
humor but can be offended with jokes about women. Brazilian
communication is cordial, complex, informal and highly
personal. They are known for their ability to talk naturally
about intimate and personal topics, but don't talk much
about politics. Topics like poverty, security, deforestation,
religion racism, corruption, social inequality, and comparisons
between soccer teams should be avoided. Body language is
greatly used and excepted over in Brazil.
Attitudes regarding individualism vs. collectivism- Brazil is
considered individualistic. Americans are more quality
conscious than Brazilians. Brazil is still brand loyal, but only
if the price is right.
WHAT CULTURAL
DIFFERENCES WOULD
YOU ENCOUNTER?
6. WHAT BUSINESS DIFFERENCES
WOULD YOU ENCOUNTER?
Differences in business etiquette - Is extremely
important in Brazil and denotes status and class. U.S.
much less formal than Brazil. The higher the position the
more dressy. Brazilians also do a lot of business with
family compared to with companies such as in the US.
Attitudes regarding time/ Differences in attitudes
regarding time / punctuality - The concept of time differs
dramatically between Brazil and the U.S. In Brazil, they
do not follow the “time is money” concept. The working
hours in most Brazilian cities are 8:30 am to 5.00 pm
with an hour or two in the middle for lunch. Businesses
are usually open from 9:00 am to 7:00 pm Monday-
Friday and 9:00-1:00 pm on Saturday. Larger businesses
and most in Sao Paulo may be open longer hours. In
Brazil, it is common for people to arrive 15-30 minutes
late to meetings as punctuality is more relaxed. Even
though this is the case in Brazil, you should still try to
come on time.
7. WHAT BUSINESS
DIFFERENCES WOULD
YOU ENCOUNTER?
Attitudes regarding family vs. work: Family ties are stronger and
broader in Brazil than they are in North America nations. In Brazil,
family ties are equally strong for kinship relationships such as
cousins, in-laws, uncles and aunts, nephews, nieces, and godparent
relationships. Family ties in Brazil provides considerably greater
access to business joint ventures, to favorable terms on
negotiations, and to reaching people in power. In the U.S., this
provides little to no influence. This could be a challenge in that
without family ties, a person that wishes to conduct business in
Brazil may not be able to reach people in power. Loyalty is highly
valued in Brazil, much more than in the United States. Brazilians
believe that with nepotism or family ties, there will be a guarantee
of loyalty. This is not the case in the United States as many
companies have strict rule on the hiring of relatives or family
members. If rules against hiring family members were implemented
in Brazil, it may produce the opposite effect and instead reduce
productivity and loyalty among employees there.
Ease of Doing Business ranking- 125
Corruption Level-96 / 180
8. INTERNATIONAL TRADE
AND ECONOMIC
BARRIERS:
Per capita income- The Gross Domestic Product per
capita in Brazil was last recorded at 10826.30 US dollars
in 2016. The GDP per Capita in Brazil is equivalent to 86
percent of the world's average. GDP per capita in Brazil
averaged 7751.89 USD from 1960 until 2016, reaching
an all time high of 11912.10 USD in 2013 and a record
low of 3425 USD in 1960.
Currency utilized- Brazilian real
Trade restrictions: As Brazil has implemented the Brazil
Major (Greater Brazil) plan, we have seen a rise in trade
protections such as tax breaks to benefit local
manufacturers, increased tariffs, and local content
requirements. U.S. companies will increase their
chances of success by working with strategic Brazilian
partners and highlighting their commitment to the
Brazilian market.
Major industries- Major industries include iron and steel
production, automobile assembly, petroleum
9. POLITICAL AND
NATIONAL BARRIERS:
Form of government- The government of Brazil is
considered a federal representative democratic republic,
under a presidential system. Under this system, the
President is both the Head of State and the Head of
Government.
Relationship with U.S.- The United States and Brazil have
a long history of deepening people-to-people ties through
exchanges in education, energy, health, agriculture,
science and technology, and innovation. The United
States and Brazil are working together on key global,
multilateral, and regional issues. The United States and
Brazil are strengthening cooperation on defense issues,
including research and development, technology
security, and the acquisition and development of
products and services. These agreements promote joint
exercises and facilitate the sharing of sophisticated
capabilities and technologies
10. DOING BUSINESS
IN BRAZIL:
Market entry strategy – After researching
and analyzing extensively, along with the
ease of doing business I have decided
that Brazil is a great location for Ugly
Shingles, especially the climate will help
to work all year around.
