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By Lieven Cooreman. Doing Business in Brazil. AGENDA. BRASILIDADE. BRAZILIAN AND BELGIAN FACTS AND FIGURES. MACRO REGIONS OF BRAZIL: OVERVIEW. BRAZILIAN AND BELGIAN FACTS AND FIGURES. BRAZIL´S PERFORMANCE. BRAZIL´S KEY CONCEPTS. DOING BUSINESS IN BRAZIL. WORKING PRACTICES IN BRAZIL.
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AGENDA BRASILIDADE BRAZILIAN AND BELGIAN FACTS AND FIGURES MACRO REGIONS OF BRAZIL: OVERVIEW BRAZILIAN AND BELGIAN FACTS AND FIGURES BRAZIL´S PERFORMANCE BRAZIL´S KEY CONCEPTS DOING BUSINESS IN BRAZIL WORKING PRACTICES IN BRAZIL STRUCTURE AND HIERARCHY IN BRAZILIAN COMPANIES BUSINESS PRACTICES IN BRAZIL BRAZILIAN BUSINESS ETIQUETTE (DO´S AND DONT´S) FINAL CONSIDERATIONS
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Oscar Niemeyer, Architect, 101 years old Feijoada, typical dish (stew of beans with beef and pork) Pelé, Soccer Player Reveillón in Copacabana, RJ Jorge Amado, Writer One of his famous film Brazilian music Sculpture of Aleijadinho Nossa Senhora Aparecida do Brasil Church, SP One of the most important names in International Modern Architecture. His buildings are in Brasília, and abroad: UNESCO World Heritage, The United Nations Headquarters in NY, among others. In Brazil, its served with rice and accompanied by chopped refried collard (couve mineira), roasted coarse flour (farofa), sliced orange and pork rinds (torresmo). Has become a sporting legend. He made 1280 goals in 1363 games. His 1st goal was with 16 years old against Argentina in 1957. Style popularized by Tom Jobim and Vinicius de Moraes. Evolved from samba but is more complex harmonically. 5 million of foreign tourists vs 4 billion of dollars spent He was the best-known of modern Brazilian writers. His work dealt largely with the poor urban black and mulatto communities of Bahia. He was a Colonial Brazil-born sculptor and architect, noted for his works on and in various churches of Brazil. 74% of Brazilian are Catholic Rodrigo Santoro, Actor Airton Senna, Race Car Driver Ruth Cardoso, Anthropologist Gisele Bundchen, Model and Film Actress 678 thousand of direct jobs Indians | Pedro Álvares Cabral´s ship He has a successful international career, having joined the cast of Lost, The movie 300 and nowadays the movie CHE, El Argentino. He is regarded as one of the greatest drivers in the history of Formula One. He held the record for most pole positions from 1989 to 1994. She modernized the role of the president´s wife and left a profound mark on Brazilian social policy. She is the highest-paid model in the world. She has appeared on more magazine covers than any other model. April 22, 1500 | Porto Seguro (BA) THE CULTURE
BRAZILIAN FACTS AND FIGURES BELGIAN FACTS AND FIGURES Land area: 30.520 km² Population: 10m Population density: 337 km² Life expectancy: Men 76yrs | Women 83yrs Adult literacy: 99% Average per household: 2.4 Divorces per 1,000: 2.4 Land area: 8.514.876 km² Population: 195m Population density: 21 km² Life expectancy: Men 68yrs | Women 76yrs Adult literacy: 88% Average per household: 3.5 Divorces per 1,000: 0.5
USA 21% Argentina Others 8% 59% China 6% Unemployed Agriculture 9% Netherlands 18% 6% Industry Services 20% 53% Germany Agriculture Unemployed Industry 15% 2% 7% 23% France 13% Services 68% EU Netherlands 56% 9% UK 7% BRAZILIAN FACTS AND FIGURES BELGIAN FACTS AND FIGURES Currency: Real GDP 2008: US$ 1.9 trillions GDP per capita: US$ 6,937 Employment (% of total): Main Exports (Type): Transport equipment & parts, Soyabeans Metal goods and Chemical products Destinations (% total): Currency: Euro GDP 2008: US$ 389.518 billion GDP per capita: US$36,235 Employment (% of total): Main Exports (Type): Chemicals, Transport equipment, Machinery, Food, drink and tobacco Destinations (% total):
USA 18% Arg 9% Others 59% Netherlands Germany 15% 8% Germany Japan 13% 6% EU France 57% 10% UK 5% BRAZILIAN FACTS AND FIGURES BELGIAN FACTS AND FIGURES Main Imports (Type): Food and animals Machinery Transport equipment Chemicals Food, drink and tobacco Main countries of origin: Main Imports (Type): Machines & electrical equipment Chemical products Oil derivatives Transport equipment & part Main countries of origin:
MACRO REGIONS OF BRAZIL: OVERVIEW Economy Data GDP (2008) – US$ 1.9 trillions GDP Per Capita – US$ 6.937 North 10th world´s largest economy 5% Northeast 11% 5% Centralwest Southeast 63% Portion of GDP per states South 16%
RORAIMA AMAPÁ AMAZONAS PARÁ ACRE RONDÔNIA TOCANTINS NORTH REGION 3.853.327,2 km²: total area 15,022,060: population GDP - US$ 100 billions US$ 3,044 (Per Capita) Contributes with a minor GDP MAIN ACTIVITIES: EXTRACTION MINING EXPLOITATION VEGETAL PLANTATION LÁTEX IRON AÇAÍ
CEARÁ MARANHÃO RIO GRANDE DO NORTE PARAÍBA PERNAMBUCO PIAUÍ ALAGOAS SERGIPE BAHIA NORTHEAST REGION 1.554.257,0 km²: total area 51,609,027: population GDP - US$ 200 billions US$ 2,310 (Per Capita) *More than 1 billion inhabitants. MAIN ACTIVITIES: EXPLOITATION TOURISM PRODUCTION OIL In SALVADOR SUGAR
MATO GROSSO DISTRITO FEDERAL GOIÁS MATO GROSSO DO SUL CENTRAL-WEST REGION 1.606.371,5 km²: total area 13,269,517: population GDP - US$ 100 billions US$ 6,136 (Per Capita) * COUNTRY´S FEDERAL CAPITAL MAIN ACTIVITIES: CATTLE BREEDING MINING TOURISM MANGANESE In PANTANAL
MINAS GERAIS ESPÍRITO SANTOS RIO DE JANEIRO SÃO PAULO SOUTHEAST REGION 924.511,292 km²: total area 77,857,758: population GDP - US$ 1,2 trillions US$ 6,499 (Per Capita)
SÃO PAULO SOUTHEAST REGION 248.808,8 km²: total area 41,055,734: population GDP - US$ 750 billions US$ 10,787 (Per Capita) IT´S AMONG THE 5 MAJOR METROPOLITAN AREAS IN THE WORLD. SOME OF THE MAIN ACTIVITIES: BOVESPA AUTOMOTIVE PRODUCTION Daily trade volume Sugarcane US$ 2.5 billions INDUSTRY ETHANOL
RIO DE JANEIRO SOUTHEAST REGION 43.696,0 km²: total area 15,561,720: population GDP - US$ 275 billions US$ 7,434 (Per Capita) THE 2ND MOST RICHEST STATE OF THE COUNTRY. MAIN ACTIVITIES: SIDERURGICAL PETROLEUM TOURISM Vale do Rio Doce Petrobrás INDUSTRY INDUSTRY CARNIVAL
MINAS GERAIS SOUTHEAST REGION 588.383 km²: total area 19,479,356: population GDP - US$ 130 billions US$ 4,206 (Per Capita) SERVICE SECTOR: 47.1% of the GDP INDUSTRIAL SECTOR: 44.1% of the GDP SOME OF THE MAIN ACTIVITIES: STEEL SIDERURGY MINING IN NOV 2008 INVESTMENT: MUS$ 550 PRODUCTION INCREASE OF 5,4 ktpy TO 17,2 ktpy 200 NEW JOB POSITIONS Rio Paracatu SALES: MUS$ 280 Usiminas GOLD
PARANÁ SANTA CATARINA RIO GRANDE DO SUL SOUTH REGION 575.315 km²: total area 26,729,883: population GDP - US$ 300 billions US$ 5,549 (Per Capita) SOME OF THE MAIN ACTIVITIES: AUTOMOTIVE WINE PRODUCING VEGETAL EXTRACTION Volkswagen INDUSTRY Miolo, RS WOOD (Pinheiro do Paraná)
BRAZILIAN BALANCE OF PAYMENTS - 2001/07 In MUS$ 180000 160000 140000 120000 100000 80000 60000 40000 20000 0 2001 2002 2003 2004 2005 2006 2007 Exports Imports Balance BRAZIL´S PERFORMANCE
OTHERS PAPER MACHINES CIENTIFIC EQUIP. TRANSPORT MAT. MINERALS MACH. AND EQUIP. TEXTILES CHEMICAL OIL AND FUEL METALLURGY FUELS COFFEE COFFEE SOYA TRANSP MATERIAL METALS SUGAR/ALCOHOL CHEMICAL MEAT SHOES/LEATHER OTHERS ANIMAL/VEGETAL BRAZIL´S PERFORMANCE MAIN PRODUCTS OF EXPORTS (% OF TOTAL) – 2001/07 MAIN PRODUCTS OF IMPORTS (% OF TOTAL) – 2001/07
OTHERS OTHERS EUROPE ASIA EUROPE ASIA AFRICA UNITED STATES AFRICA UNITED STATES MIDDLE EAST SOUTH AMERICA MIDDLE EAST SOUTH AMERICA BRAZIL´S PERFORMANCE BRAZILIAN EXPORTS BY COUNTRY AND CONTINENT (% OF TOTAL) – 2001/07 BRAZILIAN IMPORTS BY COUNTRY AND CONTINENT (% OF TOTAL) – 2001/07
BRAZIL´S KEY CONCEPTS FAMILY RELATIONSHIPS TIME CENTRE OF ITS SOCIAL STRUCTURE DEPEND ON RELATIONSHIPS WITH OTHERS (* SUPERFICIALITY) VERY RELAXED PROACTIVITY (NOT COMMON) TEND TO BE LARGE AND CLOSE-KNIT NEGOTIATIONS CAN TAKE MUCH LONGER SPEND TIME GETTING TO KNOW THEM NEPOTISM IN BUSINESS KNOWING DIRECT THE RIGHT PEOPLE HELP MEETINGS CAN BE DELAYED OR CANCELLED WITHOUT PRIOR WARNING
DOING BUSINESS IN BRAZIL CULTURAL HERITAGE HAS BEEN INFLUENCED BY A VARIETY OF DIVERSE POPULATIONS AND CULTURES PORTUGUESE COLONY BECAME IN THE 16TH CENTURY AFTER IT WAS DISCOVERED BY THE EUROPEANS LAST DECADE BRAZIL HAS OPENED UP ITS ECONOMY TO FOREIGN MARKETS AND INVESTMENT MORE EUROPEAN THAN AMERICAN BUSINESS INFLUENCE (SOME ANTI-AMERICANISM NOW FADING AWAY WITH OBAMA) WORKING PRACTICES IN BRAZIL MEALS ALSO SERVE TO SOCIALIZE AND SPEND TIME TOGETHER FASHION BRAZILIANS ARE QUITE CONSCIOUS APPOINTMENTS SCHEDULE 2-3 WEEKS IN ADVANCE HIGIENE DUE TO THE CLIME, DAILY SHOWERS WORRY ABOUT THE WATER (COOKED FOOD) BUREACRACY BEND THE RULES WITH THE “JEITINHO BRASILEIRO” LANGUAGE PORTUGUESE (SPANISH UNDERSTOOD IN BIG CITIES)
STRUCTURE AND HIERARCHY IN BRAZILIAN COMPANIES VERTICAL HIERARCHIES LITTLE DELEGATION LOW EMPOWERMENT MEN TEND TO DOMINATE DETERMINED BY ECONOMIC STATUS CLASS ASSOCIATED TO SOCIAL CLASS AND ECONOMIC STATUS ARROGANCE DISCRIMINATION THERE ARE LAWS AGAINST IT BUSINESS PRACTICES IN BRAZIL HANDSHAKES THE MOST COMMON GREETING USE OF TITLES NOT TOO MUCH MEETINGS ARE PREFERRED INSTEAD OF EMAILS THE INDIVIDUAL MORE IMPORTANT THAN THE COMPANY EYE CONTACT SHOWS YOU ARE PAYING ATTENTION DISCUSSION NEVER START BEFORE YOUR HOST DOES COFFEE DO ACCEPT. SAYING NO CAN BE SEEN AS INSULTING
BRAZILIAN BUSINESS ETIQUETTE (DO´S AND DONT´S) EXTRA TIME IT´S BETTER TO SCHEDULE BETWEEN MEETINGS INTERRUPTED EXPECT TO BE WHILE YOU ARE TALKING GOOD CONVERSATION TOPICS: SOCCER, FAMILY AND CHILDREN BUSINESS DEALINGS: DON´T RUSH FINAL DECISIONS AVOID PRESSING FOR FRUSTRATION IMPATIENCE OR FEELINGS: DON´T SHOW BAD CONVERSATION TOPICS: CRIME, CORRUPTION, DEFORESTATION, ARGENTINA, POLITICS, POVERTY, RELIGION CRITICISE DON´T MAKE IT PUBLICLY
FINAL CONSIDERATIONS FLANDERS NORTHEAST BUSINESS ASPECTS: US$ 2,310 (Per Capita) DIRECT IN THEIR SPEECH BUSINESS ASPECTS: € 27,356 (Per Capita) POOR REGION MORE RELAXED NOT SO RELIABLE SOUTHEAST US$ 6,499 (Per Capita) BUSINESS ASPECTS: RICH REGION MORE STRESSED WALLONIA STRICT TO THE POINT € 19,858 (Per Capita) BUSINESS ASPECTS: SIMILAR IN BRAZIL (DIPLOMACY)