INTERNATIONAL MARKETING

Uruguay
Prof. R. Venkatesh
Group A6
7/20/2017

Group Members :

5. Ravi Tejas Atyam

2. Samarth Agarwal
10. Milind Bendale
68. Nishita Samal
63. Anand Paramal
40. Ayesha Kedia
 1. Business Etiquettes in Uruguay

Uruguay is a stable country with a strong middle class and a good place for foreigners to pursue
business. According to the U.S. Department of State, "The investment climate is generally
positive. Investments are allowed without prior authorization, foreign and national investors are
treated alike, and there is fully free remittance of capital and profits." Uruguay has one of the
most educated populations in South America; the country boasts an overall 98% literacy rate.

● Corporate Culture

1. Meetings are extremely formal, but don't usually start on time. However, be sure to arrive
on time.
2. Kinship and friendship play a major role in business transactions. Expertise and
experience are less important than who you are.
3. Present business cards to everyone in a meeting.
4. Be ready to make small talk before the business discussions begin.
5. Many executives will speak English, but arrange for an interpreter.
6. Print all materials in Spanish, from business cards to brochures.
7. Hire a local contact to help you in the business community and to navigate you through
red tape.
8. A highly trained and educated businessperson may be working at a low-level position due
to exile, imprisonment or political affiliation. Do not ask questions.

● Formal Dress

1. Uruguayans respect and appreciate those who dress well. When in doubt, stay
conservative and formal, yet stylish.
2. For Men: conservative, blue, grey and/or brown colored suits with white or light blue
shirts and conservative ties.
3. For Women: Business suits or dresses that are elegant and feminine with good quality
accessories. Most women choose heels over flats.

● Titles & Business Cards

1. Titles are very important and it is best to address people directly by using their
professional title only. If they do not have professional titles like, Doctor, Lawyer, etc,
they should be addressed as Mr., Mrs., or Miss, plus their surnames.
2. There is no specific ritual surrounding the giving and receiving of business cards, but be
prepared to present business cards to everyone in a meeting.
3. It is advisable to have one side of your business card translated into Spanish. Present
your business card with the Spanish side facing the recipient.

● Formal Meetings

1. In keeping with tradition of South American business meetings, Uruguayans are typically
tardy for business meetings. You should be punctual, but be prepared to wait for your
hosts.
2. Make small talk before getting down to business. Uruguayans prefer to form relationships
with clients and will want to get to know you. Family is very important in Uruguay; be
prepared for your hosts to ask you personal questions about your family life.
3. Though many Uruguayan business people speak English, you will most likely need a
translator.
4. Have plenty of business cards on hand. Print one side in English and the other in Spanish.
5. Present all materials in Spanish.

● Negotiations

1. Avoid hard selling and any sort of conflict or confrontation. Uruguayans respond much
better to the soft sell.
2. The issue of saving face is important in Uruguay , so don’t be surprised if it appears that
your counterpart seems to agree to everything you say , but no contract is signed.
3. Final decisions are usually made by the highest ranking officers, so it is best to have them
in the meeting if possible.
2. Social Etiquettes in Uruguay

● General

Smoking is banned indoors everywhere. Drinking is acceptable night and day, especially beer
and especially weekends.
Uruguayans are quite traditional and do not welcome criticism from foreigners. They also do not
appreciate being confused with Paraguayans or Argentinians.

● Tips and Taboos

1. Though Uruguay is a friendly country, people do not typically talk to strangers on the
street. Refrain from smiling at people on the bus or street; your gesture may be
misunderstood.
2. The "OK" hand gesture has a vulgar meaning in Uruguay, so do not use it.
3. Uruguayans have a much closer personal space than Americans and will typically stand
shoulder to shoulder or touch each other on the arm while speaking.
4. Do not sit on top of a desk or table during your visit in Uruguay; this is considered very
bad manners.
5. The people of Uruguay take great pride in their country and will welcome conversation
regarding their culture and history.
6. Politics is also welcome during conversation; make sure you are well informed before
engaging in this topic, however.

● Dinner Etiquettes

1. Dining etiquette generally follows European dining etiquette.

2. During the meal, keep your hands above the table (not on your lap).
3. When you are finished, arrange your knife and fork parallel to each other with the tines
facing north on the rim of your plate.
4. In a restaurant, wait staff may be summoned by subtly raising your hand and saying,
"Mozo."
5. People are very casual about time for social events. An invitation for 9:00 p.m. usually
means to arrive by 10:00 p.m. Uruguayans usually dine at 9:00 or 10:00 p.m.
6. Business dinners are to socialize. Do not talk business unless your host initiates the
conversation.
7. It is extremely impolite to use a toothpick in public.
8. If an Uruguayan invites you to his/her home for coffee after dinner, don't stay late on a
work night.
● Informal meeting and Greeting

1. Greetings are warm and accompanied by a firm handshake.

2. Friends kiss once on the right cheek when meeting.
3. People do not greet strangers when passing on the street. Greeting or smiling at a stranger
may be misunderstood.

● Body Language

1. Uruguayans stand very close when conversing, both socially and in business.
2. People touch shoulders and hold arms while they talk to each other.
3. Never sit on or put your feet up on a ledge, desk or table.
4. The “ch-ch” sound is used to get someone's attention or to get a bus to stop.
5. The North American “O.K.” sign is extremely rude.
6. People brush the backs of their hands under their chins to signal “I don't know.”

● Casual Dressing

1. Uruguayans dress conservatively and seldom wear the bright colors popular elsewhere in
South America.
2. Women may not wear nylons during the summer. If your Uruguayan colleagues do not
wear ties or jackets in the summer, you may follow.
3. Gifts
4. Everyone likes North American jeans.
5. Women love flowers, especially roses. A rare, salmon-colored tea rose is a favorite.
6. It is polite and common for guests to send candy or flowers to a hostess before the
occasion.
7. Gift giving is not an important part of doing business. Give scotch (Black Label or
Chivas Regal) and gifts made in the United States, especially from your region.
3. Trade Figures between India & Uruguay

India exports to Uruguay goods and services amounting to $280M that comprises 2.8% of the
total imports of Uruguay of $9.9B.

Uruguay exports to India goods and services amounting to $21.9M that comprises 0.27% of the
total exports of Uruguay of $8.24B

India imports from Uruguay-

● Textile ($12.7M)
● Wool (96%) - $12.2M
● Prepared wool or animal hair (3.7%) - ($472K)
● Wool or animal hair waste (0.64%) - ($82k)
● Wood products ($2.82M)
● Rough wood (13%) - ($2.78M)
● Plywood (0.18%) - ($39.8K)
● Mineral products(0.40%) - ($88.6K)
● Other iron products (5.7%) - ($1.26M)
● Scrap iron (4.8%) - ($1.05M)
● Iron pipes (1.2%) - ($259K)
● Animal hides ($1.11M)
● Tanned equine and bovine hides (3.7%)--($799K)
● Tanned furskins (0.78%)--($171K)
● Raw furskins (0.26%)--($57.8K)
● Soybeans (3.7%)--($802K)
● Animal products ($762K)
● Pharmaceutical animal products (1.9%) - ($405K)
● Whey (1.4%) - ($314K)
● Non fillet frozen fish (0.2%) - ($43.3K)
● Chemical products ($410K)
● Dyeing finishing agents (1.3%) - ($289K)
● Scented mixtures (0.33%) - ($71.7K)
● Nitrile compounds (0.09%) - ($19.8K)
● Foodstuffs($93K)
● Soybean mill(0.33%) - ($72.1K)
● Other edible preparations(0.096%) - ($20.9K)
● Non-Iron and steel slag, Ash and residues(0.4%) - ($88.6K)
● Plastics and rubbers ($71.6K)
● Styrene polymers(0.31%) - ($68.1K)
 ● Scrap plastic(0.016%) - ($3.46K)
● Machines($14.3K)
● Computers(0.027%) - ($5.94K)
● Blank audio media(0.017%) - ($3.75K)
● Office machine parts(0.0092%) -($2.02K)

Uruguay import from India:

● Animal & Vegetable Bi-Products - $ 32.5K

● Animal Hides - $1.19M
● Animal Products - $267K
● Arts & Antiques - $7.7K
● Chemical Products - $70.9M
■ v Nitro Heterocyclic Compounds - $25.4M (36% of total chemical
product imports from India)
■ v Pesticides - $11.5M (16% of total chemical product imports from India)
■ v Oxygen Amino Compounds - $5.26M (7.4% of total chemical product
imports from India)
● Foodstuffs - $1M
● Footwear & Headwear - $1.33M
● Instruments - $1.01M
● Machines - $76.4M
■ v Electric Generating Sets - $68M (89% of total machine imports from
India)
■ v Electrical Transformers - $1.97M (2.6% of total machine imports from
India)
■ v Large Construction Vehicles - $1.06M (1.4% of total machine imports
from India)
● Metals - $7.37M
● Mineral Products - $1.11M
● Miscellaneous - $1.35M
● Paper Goods - $81K
● Plastics & Rubbers - $36.4M
■ v Polyacetals - $31.5M (87% of total P&R imports from India)
■ v Rubber Tires - $2.29M (6.3% of total P&R imports from India)
■ v Ethylene Polymers - $2.29M (6.3% of total P&R imports from India)
● Precious Metals - $351K
● Stone & Glass - $795K
● Textiles - $23.5M
 ■ v Non-Knit Women’s Shirts - $3.01M (13% of total Textiles imports
from India)
■ v Packing Bags - $2.99M (13% of total Textiles imports from India)
■ v Non-Knit Women’s Suits - $2.56M (11% of total Textiles imports from
India)

● Transportation - $55.5M
■ v Cars - $49.3M (89% of total Transportation imports from India)
■ v Tractors - $3.02M (5.4% of total Transportation imports from India)
■ v Motorcycles - $1.67M (3.0% of total Transportation imports from
India)

● Vegetable Products - $726K

● Wood Products - $114K

4. Product/ Services which India exports to rest of the world but not Uruguay & same
product/service which Uruguay exports from rest of the world but not India.

The revealed comparative advantage is an index used in international economics for calculating
the relative advantage or disadvantage of a certain country in a certain class of goods or services
as evidenced by trade flows.

Example: in 2010, soybeans represented 0.35% of world trade with exports of $42 billion. Of
this total, Brazil exported nearly $11 billion, and since Brazil’s total exports for that year were
$140 billion, soybeans accounted for 7.8% of Brazil’s exports. Because 7.8/0.35 = 22, Brazil
exports 22 times its “fair share” of soybean exports, and so we can say that Brazil has a high
revealed comparative advantage in soybeans.

Raw Sugar-

India Export Figures:

Export Value - $1.24B

Export RCA - 3.076
Percent - 19% of total foodstuff export

Uruguay Import Figures:

Import Value - $50.4M
Import RCA - 2.35
Percent - 7.4% of total foodstuff import

Coffee and Tea Extracts -

India Export Figures:

Export Value - $327M

Export RCA - 3.77
Percent - 5.1% of total foodstuff export

Uruguay Import Figures:

Import Value - $8.24M
Import RCA - 1.87
Percent - 1.2% of total foodstuff import
Soybean Meal -

India Export Figures:

Export Value - $576M

Export RCA - 1.23
Percent - 9% of total foodstuff export

Uruguay Import Figures:

Import Value - $21.1M
Import RCA - 1.25
Percent - 3.1% of total foodstuff import

Bran -

India Export Figures:

Export Value - $29.4M

Export RCA - 1.49
Percent - 0.46% of total foodstuff export

Uruguay Import Figures:

Import Value - $36.2M
Import RCA - 37.7
Percent - 5.3% of total foodstuff import

Hard Liquor (Also contains Alcohol above 80% drinks)-

India Export Figures:

Export Value - $273M

Export RCA - 1.49
Percent - 1.15% of total foodstuff export

Uruguay Import Figures:

Import Value - $28.92M
Import RCA - 1.83
Percent - 4.25% of total foodstuff import