Transcript Slide 1
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 STRUCTURE AND HIERARCHY IN BRAZILIAN COMPANIES BUSINESS PRACTICES IN BRAZIL BRAZILIAN BUSINESS ETIQUETTE (DO´S AND DONT´S) FINAL CONSIDERATIONS What is ? is The distinct features of the brazilian and of Brazil. know A bit about Next... THE CULTURE Oscar Niemeyer, Architect, 101 years old Feijoada, typical dish (stew with beef and pork) Reveillón Rodrigo Santoro, in Copacabana, Actor RJof beans Jorge Amado, Writer One of his famous film Airton Ruth Cardoso, Senna, Race Anthropologist Car Driver Brazilian Pelé, Soccer music Player Gisele Bundchen, Model and Film Actress Sculpture of Aleijadinho Nossa Senhora Aparecida do Brasil Church, SP Indians | Pedro Cabral´s One of the most Álvares important names ship in International Modern In Brazil, itsbest-known served with rice and accompanied by He has athe successful international career, having joined 5 million of foreign tourists vs 4in billion of1280 dollars spent Has become aHis sporting legend. He made goals in the He She ismodernized regarded asare the one role ofmodel the ofJobim the greatest president´s drivers wife in the and history left a was of modern Brazilian writers. His Style popularized by Tom and Vinicius de Moraes. Architecture. buildings are Brasília, and abroad: She is the highest-paid in the world. She has He was a Colonial Brazil-born sculptor and architect, 74% of Brazilian Catholic April 22, 1500 | Porto Seguro (BA) chopped refried collard (couve mineira), roasted coarse cast of Lost, The movie 300 and nowadays the movie 1363 games. His 1st goal was with 16 years old against of profound Formula mark One. on He Brazilian held the social record policy. for most pole work dealt largely with the poor urban black and UNESCO World The United Nations appeared on more magazine covers than any other model. noted forArgentino. his works on and in various churches ofmulatto Brazil. 678 thousand ofHeritage, direct jobs Evolved from samba but is more complex harmonically. flour (farofa), sliced orange and pork rinds (torresmo). CHE, El Argentina in 1957. positions from 1989 to 1994. communities of Bahia. Headquarters in NY, among others. LOCATION BRAZILIAN FACTS AND FIGURES BELGIAN FACTS AND FIGURES Land area: 30.520 km² Land area: 8.514.876 km² Population: 195m Population density: 21 km² Population: 10m Population density: 337 km² Life expectancy: Men 68yrs | Women 76yrs Life expectancy: Men 76yrs | Women 83yrs Adult literacy: 88% Adult literacy: 99% Average per household: 3.5 Average per household: 2.4 Divorces per 1,000: 0.5 Divorces per 1,000: 2.4 BRAZILIAN FACTS AND FIGURES BELGIAN FACTS AND FIGURES Currency: Real Currency: Euro GDP 2008: US$ 1.9 trillions GDP 2008: US$ 389.518 billion GDP per capita: US$ 6,937 GDP per capita: US$36,235 Employment (% of total): Employment (% of total): Unemployed 9% Agriculture 18% Unemployed Agriculture Industry 2% 7% 23% Industry 20% Services 53% Main Exports (Type): Services 68% Main Exports (Type): Transport equipment & parts, Soyabeans Metal goods and Chemical products Destinations (% total): Chemicals, Transport equipment, Machinery, Food, drink and tobacco Destinations (% total): USA 21% Germany 15% Others 59% France 13% Argentina 8% China 6% Netherlands 6% EU 56% UK 7% Netherlands 9% BRAZILIAN FACTS AND FIGURES BELGIAN FACTS AND FIGURES Main Imports (Type): Main Imports (Type): Machines & electrical equipment Food and animals Chemical products Machinery Oil derivatives Transport equipment Transport equipment & part Chemicals Food, drink and tobacco Main countries of origin: Main countries of origin: USA Netherlands 15% 18% Germany 13% Arg 9% Others 59% Germany 8% Japan 6% EU 57% UK 5% France 10% MACRO REGIONS OF BRAZIL: OVERVIEW Economy Data GDP (2008) – US$ 1.9 trillions GDP Per Capita – US$ 6.937 North 10th world´s largest economy 5% Northeast 5% 11% Centralwest Southeast 63% Portion of GDP per states South 16% NORTH REGION RORAIMA AMAPÁ 3.853.327,2 km²: total area 15,022,060: population AMAZONAS GDP - US$ 100 billions PARÁ US$ 3,044 (Per Capita) Contributes with a minor GDP ACRE RONDÔNIA TOCANTINS MAIN ACTIVITIES: EXTRACTION MINING EXPLOITATION VEGETAL PLANTATION LÁTEX IRON AÇAÍ NORTHEAST REGION CEARÁ MARANHÃO 1.554.257,0 km²: total area RIO GRANDE DO NORTE PARAÍBA PERNAMBUCO PIAUÍ 51,609,027: population GDP - US$ 200 billions ALAGOAS US$ 2,310 (Per Capita) SERGIPE *More than 1 billion inhabitants. BAHIA MAIN ACTIVITIES: EXPLOITATION TOURISM PRODUCTION OIL In SALVADOR SUGAR CENTRAL-WEST REGION MATO GROSSO 1.606.371,5 km²: total area DISTRITO FEDERAL 13,269,517: population GDP - US$ 100 billions US$ 6,136 (Per Capita) GOIÁS * COUNTRY´S FEDERAL CAPITAL MAIN ACTIVITIES: MATO GROSSO DO SUL CATTLE BREEDING MINING TOURISM MANGANESE In PANTANAL SOUTHEAST REGION MINAS GERAIS 924.511,292 km²: total area 77,857,758: population ESPÍRITO SANTOS GDP - US$ 1,2 trillions US$ 6,499 (Per Capita) RIO DE JANEIRO SÃO PAULO SOUTHEAST REGION 248.808,8 km²: total area 41,055,734: population GDP - US$ 750 billions US$ 10,787 (Per Capita) SÃO PAULO IT´S AMONG THE 5 MAJOR METROPOLITAN AREAS IN THE WORLD. SOME OF THE MAIN ACTIVITIES: BOVESPA AUTOMOTIVE Daily trade volume US$ 2.5 billions PRODUCTION Sugarcane INDUSTRY ETHANOL SOUTHEAST REGION 43.696,0 km²: total area 15,561,720: population GDP - US$ 275 billions US$ 7,434 (Per Capita) RIO DE JANEIRO THE 2ND MOST RICHEST STATE OF THE COUNTRY. MAIN ACTIVITIES: SIDERURGICAL PETROLEUM Vale do Rio Doce Petrobrás INDUSTRY INDUSTRY TOURISM CARNIVAL 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 MINAS GERAIS 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 Rio Paracatu Usiminas GOLD 200 NEW JOB POSITIONS SALES: MUS$ 280 SOUTH REGION 575.315 km²: total area PARANÁ 26,729,883: population SANTA CATARINA GDP - US$ 300 billions RIO GRANDE DO SUL US$ 5,549 (Per Capita) SOME OF THE MAIN ACTIVITIES: AUTOMOTIVE WINE PRODUCING VEGETAL EXTRACTION Miolo, RS WOOD (Pinheiro do Paraná) Volkswagen INDUSTRY BRAZIL´S PERFORMANCE BRAZILIAN BALANCE OF PAYMENTS - 2001/07 In MUS$ 180000 160000 140000 120000 100000 80000 60000 40000 20000 0 2001 2002 Exports 2003 2004 Imports 2005 2006 Balance 2007 BRAZIL´S PERFORMANCE MAIN PRODUCTS OF EXPORTS MAIN PRODUCTS OF IMPORTS (% OF TOTAL) – 2001/07 (% OF TOTAL) – 2001/07 Principais Mercadorias de Exportação (% total) - 2001/07 Principais Mercadorias de Importação (% total) - 2001/0 6,9% 12,6% 19,5% 2,7% 3,8% Mat. Transporte OTHERS Máqs. e equip. 12,3% 2,2% 30,7% Metalurgicos 5,2% Soja Quimicos 5,7% Minérios 3,4% Petróleo e comb. 3,7% Carnes 10,5% 4,1% 7,4% Açúcar e alcool Calçados e couro Papel e celulose 5,2% Café 9,0% 5,3% 5,8% 16,5% Demais 21,0% 6,4% TRANSPORT MAT. PAPER MACHINES CIENTIFIC EQUIP. MACH. AND EQUIP. MINERALS METALLURGY OIL AND FUEL CHEMICAL TEXTILES SOYA COFFEE FUELS COFFEE SUGAR/ALCOHOL CHEMICAL TRANSP MATERIAL METALS MEAT SHOES/LEATHER ANIMAL/VEGETAL OTHERS BRAZIL´S PERFORMANCE BRAZILIAN EXPORTS BY COUNTRY AND CONTINENT (% OF TOTAL) – 2001/07 BRAZILIAN IMPORTS BY COUNTRY AND CONTINENT (% OF TOTAL) – 2001/07 Importação Brasileira por País e Continente (% total) - 2001/07 Exportação Brasileira por País e Continente (% total) - 2001/07 OTHERS 10,3% OTHERS 3,8% 3,3% 6,6% 24,8% 25,9% Europa 7,7% 4,3% Est. Unidos Am. do Sul Ásia 14,7% 17,0% Africa Oriente Médio Demais 22,0% 20,0% 19,8% 19,6% EUROPE ASIA EUROPE ASIA UNITED STATES AFRICA UNITED STATES AFRICA SOUTH AMERICA MIDDLE EAST SOUTH AMERICA MIDDLE EAST BRAZIL´S KEY CONCEPTS FAMILY RELATIONSHIPS TIME CENTRE OF ITS SOCIAL STRUCTURE DEPEND ON RELATIONSHIPS WITH OTHERS VERY RELAXED (* SUPERFICIALITY) (NOT COMMON) SPEND TIME GETTING TO KNOW THEM NEGOTIATIONS CAN TAKE MUCH LONGER KNOWING DIRECT THE RIGHT PEOPLE HELP MEETINGS CAN BE DELAYED OR CANCELLED WITHOUT PRIOR WARNING TEND TO BE LARGE AND CLOSE-KNIT NEPOTISM IN BUSINESS PROACTIVITY DOING BUSINESS IN BRAZIL CULTURAL HERITAGE PORTUGUESE COLONY LAST DECADE MORE EUROPEAN THAN AMERICAN HAS BEEN INFLUENCED BY A VARIETY OF DIVERSE POPULATIONS AND CULTURES BECAME IN THE 16TH CENTURY AFTER IT WAS DISCOVERED BY THE EUROPEANS BRAZIL HAS OPENED UP ITS ECONOMY TO FOREIGN MARKETS AND INVESTMENT 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 MEN CLASS ARROGANCE DISCRIMINATION LITTLE DELEGATION LOW EMPOWERMENT TEND TO DOMINATE DETERMINED BY ECONOMIC STATUS ASSOCIATED TO SOCIAL CLASS AND ECONOMIC STATUS THERE ARE LAWS AGAINST IT BUSINESS PRACTICES IN BRAZIL HANDSHAKES THE MOST COMMON GREETING USE OF TITLES NOT TOO MUCH MEETINGS THE INDIVIDUAL EYE CONTACT DISCUSSION COFFEE ARE PREFERRED INSTEAD OF EMAILS MORE IMPORTANT THAN THE COMPANY SHOWS YOU ARE PAYING ATTENTION NEVER START BEFORE YOUR HOST DOES 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 FINAL DECISIONS FRUSTRATION BAD CONVERSATION CRITICISE DEALINGS: DON´T RUSH AVOID PRESSING FOR IMPATIENCE OR FEELINGS: DON´T SHOW TOPICS: CRIME, CORRUPTION, DEFORESTATION, ARGENTINA, POLITICS, POVERTY, RELIGION DON´T MAKE IT PUBLICLY FINAL CONSIDERATIONS NORTHEAST US$ 2,310 (Per Capita) FLANDERS BUSINESS ASPECTS: 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) By Lieven Cooreman