Oriental Republic of Uruguay

Group A4 : Business Design

Abhinav Mishra
Ankit Jodawat
Kushal D. Sankhe
Shambhu Mandal
Shivraj Chavan
Profile of the Country
• Geography
Area: 176,220 sq. km
Capital: Montevideo
Terrain: Plains and low
hills, fertile coastal
lowland; 84% agricultural
Climate: Temperate
…Contd
• People
Nationality: Uruguayan(s)
Population (July 2008): 3.3 million.

Annual growth rate: 0.3%.

Ethnic groups (1997): European descent 93.2%, African
descent 5.9%, indigenous
descent 0.4%, Asian descent 0.4%

Religions: Roman Catholic 66%, Protestant and other

Christian 2%, Jewish 1%, non
professing or other 31%.

Language: Spanish
Education: Literacy (2007)--98%
Health (2007): 
Life expectancy--75.85 yrs
Infant mortality rate (2006)--10.5/1,000
Work force (1.6 million, 2008): 
Commerce, restaurants, and hotels 21%; 
manufacturing, gas, and electricity 14%; 
agriculture, fishing, and mining 11%; 
construction 7%
….contd
• Government Type: Constitutional republic.
•
Independence: August 25, 1825.
•
Constitution: First 1830, current 1967, most recently amended
January 1997
•
Branches: Executive--president (chief of state and head of
government). Legislative--General Assembly elected by
proportional representation  Judicial--Supreme Court of Justice.
•
Administrative subdivisions: 19 departments with limited
autonomy.
•
Political parties/coalitions: Colorado Party, Blanco (National)
Party, Frente Amplio, Independent Party.
Suffrage: Universal and compulsory at 18.
….contd
• Economy
Gross domestic product (GDP): $31.5 billion (2009); $31.2 billion (2008); $23.9 billion (2007);
$19.8 billion (2006); $17.4 billion (2005).

Annual growth rate: 2.9% (2009); 8.9% (2008); 7.6% (2007); 4.6% (2006); 7.5% (2005).
Per capita GDP: $9,457 (2009); $9,357 (2008); $7,209 (2007); $5,977 (2006); $5,254 (2005);
$4,146 (2004).

Natural resources: Arable land, pastures, hydroelectric power, granite, marble, fisheries.
Agriculture (9% of GDP): Products--beef, wool, rice, wheat, barley, corn, soybeans, fish, forestry.
Industry (14% of GDP): Types--food processing, electrical machinery, wool, textiles, leather,
leather apparel, beverages and tobacco, chemicals, cement, petroleum products, transportation
equipment.

Services: Commerce, restaurants and hotels--14% of GDP. Construction--7% of GDP. Other

services--56% of GDP. 

Trade: Exports (2009, f.o.b.)--$5.5 billion ($6.5 billion including exports of cellulose pulp and
beverage concentrates from free trade zones): beef, rice, dairy products, wood, soy and leather.
Major markets--Brazil , Argentina, China, Russia, Venezuela, U.S. 
Imports (2009, c.i.f.)--$6.9 billion: oil, planes, telephony equipment, insecticides, vehicles,
paper, plastics. Major suppliers--Brazil, Argentina, China, United States, Venezuela. 
People and Etiquettes
• The majority of the people are middle class;
the extremes of wealth and poverty found in
most other South American countries don't
exist.
• Uruguayans take a pragmatic, utilitarian and
materialistic approach to life.
• They have an inherent trust of people and a
strong belief in social justice.
• A great deal of emphasis is placed on
education. Uruguay has the best-educated
workforce on the continent.
Meeting and Greeting

• Greetings are warm and accompanied by a firm

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

• Uruguayans stand very close when conversing,

both socially and in business.
• People touch shoulders and hold arms while they
talk to each other.
• Never sit on or put your feet up on a ledge, desk or
table.
• The “ch-ch” sound is used to get someone's
attention or to get a bus to stop.
• The North American “O.K.” sign is extremely rude.
• You may see people brush the backs of their hands
under their chins to signal “I don't know.”
Corporate Culture

• Meetings are extremely formal, but don't usually start on time.

However, be sure to arrive on time.
• Kinship and friendship play a major role in business
transactions. Expertise and experience are less important than
who you are.
• Present business cards to everyone in a meeting.
• Be ready to make small talk before the business discussions
begin.
• Many executives will speak English, but arrange for an
interpreter.
• Print all materials in Spanish, from business cards to
brochures.
• Hire a local contact to help you in the business community
and to navigate you through red tape.
• 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.
Dining and Entertainment
• 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
• Uruguayans are comfortable conducting business
over lunch
• Business dinners are to socialize. Do not talk
business unless your host initiates the conversation
• It is extremely impolite to use a toothpick in public
• If an Uruguayan invites you to his/her home for
coffee after dinner, don't stay late on a work night
• Be alert for cues from your counterpart that tell you
he/she is tired and wants to end the night
Dress

• Uruguayans dress conservatively and seldom

wear the bright colors popular elsewhere in
South America.
• Women may not wear nylons during the
summer. If your Uruguayan colleagues do
not wear ties or jackets in the summer, you
may follow.
• For business, men should wear conservative,
dark suits and ties.
• Women should wear blouses with dark suits,
skirts and dresses.
Gifts
• Everyone likes North American jeans.
• Women love flowers, especially roses. A rare,
salmon-colored tea rose is a favorite.
• It is polite and common for guests to send
candy or flowers to a hostess before the
occasion.
• 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.
Helpful Hints

• Uruguayans are extremely political people. Ask

about politics.
• Ask questions about Uruguay. People are very
proud of their country.
• Don't confuse Paraguay and Uruguay.
Uruguay – India trade relations

• In the year 2003, Uruguay’s export to India was

approx. 10 million dollars and imports were 7
million dollars
• In the year 2008-09, Uruguay’s imports from
India was 36.5 million dollars and exports were
a mere 9.7 million dollars. Practically the same
as in 2003
Uruguay’s Exports to India
•Of the total Uruguay’s exports to
the world, 27% are services and
73% are goods
•In the goods category, Global
exports are dominated by meat,
rices and soyabeans
•In the services category, travel and
transport take the lead
•As shown in the figure, Wool is the
leading product of Uruguay’s
exports to India
India’s Exports to Uruguay
• India’s Exports to Uruguay
is dominated be Chemicals
and pharmaceuticals
• Due to Govt initiatives,
Indian exports to Uruguay
have considerably increased
from 7 to 36.5 mn dollars in
the span of 7 years
Commercial Ties

The graphs show the considerable increase in the bilateral trade relations
between two countries in recent years
 Opportunities for further exports
Uruguay's
imports from Uruguay's imports
India India's exports to world from world
Product name

2008 2009   2008 2009   2008 2009

Photographic or cinematographic
goods 0 0   33791 24702   9485 8821

Fertilizers 0 0   43170 136366   304822 156411

Beverages, spirits and vinegar 0 0   114283 122196   30031 35834

Residues, wastes of food industry,
animal fodder 3 0   2779798 1707576   100520 84226
Cereal, flour, starch, milk
preparations and products 0 0   242929 207225   38944 36350
Vegetable, fruit, nut, etc food
preparations 0 0   266478 265394   46083 46317
Impregnated, coated or laminated
textile fabric 0 0   99965 91988   7015 6154

Unit: USD thousand

References from the above table

• Uruguay imports USD 156411 k worth of

Fertilizers from the world.
• India exports USD 136366 k worth of fertilizers
to the world.
• But it is seen that India does not export even a
single dollar worth of fertilizer to Uruguay.
• India could possibly export all of its fertilizers to
Uruguay instead of having to export it to other
countries.
• There is a huge opportunity for India to export
Residues, wastes of food industry, animal fodder to
Uruguay as Uruguay imports nearly USD 84226 k
worth of these products from the world and India
exports USD1707576 k worth of these products to the
world.
• But as of now, India does not export any of these
products to Uruguay.
• Indian exports of these products to Uruguay can
suffice the entire demand for these products in that
country.