Negotiation styles

in South America

Steps in the Negotiation Process

Preparation and Site Selection

Team Selection
Relationship Building
Opening Talks
Discussions
Agreement

Preparation and Site Selection

Hire a consultant in the country.

Consult resource videos and written materials
on negotiation.
Choose a sitehere or there can be important.

Team Selection

Consider number, age, gender,

and rank of team members.
Consider background of players.
Evaluate other negotiators - their
political affiliation, social class,
age, and risk-taking propensity.

Relationship Building

Time required
Intermediaries or agents
Friendship versus business relationship

Opening Talks and

Discussions

Observe opening rituals - small talk, humor,

etc.
Consider the appropriateness of an agenda.
Expect a variety of behaviors.
Plan ahead for concessions.
Move to an informal location when
appropriate.

Agreement

Close negotiations properly.

Expect delays .
Get tax and legal advice.
Anticipate a long wait until final approval.
Remember that contracts are not always
considered final.

The best practices apply by negotiators

Preparing a strategy based on clear objectives
Developing options and alternatives
Understanding the other partys reservation limits and underlying interests
Planning concessions in advance and classifying into tangibles and non-tangibles
Preparing valid arguments to counter objections
Identifying ones strengths and weaknesses, vis-a-vis competition
Being culturally sensitive, patient and a good listener
Adopting a creative problem-solving attitude
Having a plan to conclude and an implementation mindset
Avoiding being overconfident

Characteristic of
South America Negotiating Style

Relationships are important

Bribery is common
Government is very involved in business
Negotiators chosen based on family connections,
political influence, education, and gender (females
should be in the background)
Social competence is important
Most agreements are consummated over lunch
Avoid gestures
Numerous meetings is the normal, time is not seen
as important


Don't be in a hurry. Anyone who has negotiated in
South America, or the Middle East will tell you that
people in those cultures look at time differently
than we do in North America and Europe. They
know that if you rush, you are more likely to make
mistakes and leave money on the table. Whoever
is more flexible about time has the advantage.
Your patience can be devastating to the other
negotiator if they are in a hurry because they start
to believe that you are not under pressure to
conclude the deal.

Statements Characteristic of
South America Negotiating
Style

"I can handle this myself"

(to express

individualism).

"Please call me Steve"

(to make people feel

relaxed by being informal).

"Pardon my French" (to excuse profanity).

"Let's get to the point" (to speed up decisions).
"Speak up; what do you think?" (to avoid
silence).

"A deal is a deal"

(to indicate an expectation that

the agreement will be honored).

Negotiating Skills

In South America generally prefer to conduct business

negotiations face to face. Most South American business
people prefer to work with those they consider friends,
rather than individuals with whom they have not
established rapport - even if the strangers have a
goodoffer.
Negotiating in South American countries generally takes
longer and will include many more discussions
andmeetings.

Argentina

Argentines tend to present a united front and defer

to a key negotiator, who is often the only one who
speaks during themeeting.
Argentines emphasize persuasiveness and use
friendship to secureconcessions.
However, on some occasions, they will also use
temper as a tactic to get those concessions. Be
patient and calmly get the negotiations back
ontrack.
Argentines will use contracts and have lawyers and
accountants review them indepth.

Brazil

Many Brazilian firms are privately owned, therefore it is

important to understand with whom you are conducting
business and who will be making thedecisions.
-- Brazil is a hierarchical society. Decisions may be made by
top people who may not be present at yourmeeting.
-- Compared with other Latin American countries, Brazilians
are more individualistic and have less concern forconsensus.
-- Brazilians tend to play it safe, so you will often be dealing
with people who are hesitant to take the risks necessary to
accomplish thegoal.
-- Agreements will be confirmed with a handshake and a
formalagreement.

Brazilian Advantages and Disadvantages in

Negotiation Strategies

Advantages:
Employ Legal Experts for Assistance to Get
the Initiative in Trade Negotiation
Lead Regional Economy Integration (Mercosur)
and Aggressively Expand Multilateral (WTO)
and Bilateral Trading Relationships

Disadvantages

High Tax Liability and Lots of Government

Scandals
Protected by high tax rates, the electronic
industry has inhibited the corporate
development nationally.
Careless attitude towards time and work, a
weakness often caught by the negotiator

Mexic

Mexicans do not rush into business, so you need to slow

your pace and not put all your cards on the table
rightaway.
Mexico is an insular community. If you offend someone,
it may carry over into business with others who appear
not to berelated.
Don't bargain during negotiations. The negotiations are
much stronger if you work on winning solutions for
bothsides.
Be prepared to discuss items not on the agenda. While
an agenda is important in a negotiation, Mexicans may
deviate from thetopics.


In business, you don't get what you
deserve, you get what you negotiate.
Why take no for an answer? Successful
people don't. They get what they want by
negotiating better deals for both parties.