Brazil

Atul jain & Associates

About Brazil and Brazilian
Ø Official name – Federative Republic of Brazil
Ø Population – 196,342,227*
Ø Official Language – Portuguese
Ø Currency – Brazilian real (BRL)
Ø Capital – Brasilia
Ø GDP – purchasing power parity $1.836 trillion*
Ø GDP Per Capita – $ 10,100 (2008)
Ø Religions: Roman Catholic (nominal) 80%
Ø Language : Portuguese is the most spoken
language, but English and French are also
spoken
Ø Government: Multiparty Federal Republic
Ø
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
•
 Contd…….
• 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.

 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 SHARE GROWTH
(US$ thousands) (%) (% 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 & 1,382,639 0.60 139.58
Graders
Top Ten Products Exported from
Brazil – 2008
PRODUCTS Trade Value SHARE GROWTH
(US$ thousands) (%) (% 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 3,387,592 0.86 142.43

Woodpulp

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

Brazilian Embassy in Mumbai

Top Ten Exports of Brazil
 Top Ten Brazilian Imports
From India -2008
Main Products Trade Value
Diesel Oil (US$ thousand)
15,24,698
Coke of Coal 1,08,488
Generating Sets Wind-powered 1,07,184
Single Cotton Yarn of Combed fibres 99,038
(85%)
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

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%