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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.

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Presentation on theme: "By Lieven Cooreman. Doing Business in Brazil AGENDA BRASILIDADE BRAZILIAN AND BELGIAN FACTS AND FIGURES MACRO REGIONS OF BRAZIL: OVERVIEW BRAZILIAN AND."— Presentation transcript:

1 By Lieven Cooreman

2 Doing Business in Brazil

3 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

4 Wha t is ?

5 The distinct features of the brazilian and of Brazil.

6 kno w A bit about Next...

7 THE CULTURE Indians | Pedro Álvares Cabral´s ship April 22, 1500 | Porto Seguro (BA) Nossa Senhora Aparecida do Brasil Church, SP 74% of Brazilian are Catholic Reveillón in Copacabana, RJ 678 thousand of direct jobs 5 million of foreign tourists vs 4 billion of dollars spent Oscar Niemeyer, Architect, 101 years old 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. Feijoada, typical dish (stew of beans with beef and pork) In Brazil, its served with rice and accompanied by chopped refried collard (couve mineira), roasted coarse flour (farofa), sliced orange and pork rinds (torresmo). Jorge Amado, Writer One of his famous film He was the best-known of modern Brazilian writers. His work dealt largely with the poor urban black and mulatto communities of Bahia. Sculpture of Aleijadinho He was a Colonial Brazil-born sculptor and architect, noted for his works on and in various churches of Brazil. Brazilian music Style popularized by Tom Jobim and Vinicius de Moraes. Evolved from samba but is more complex harmonically. Pelé, Soccer Player Has become a sporting legend. He made 1280 goals in 1363 games. His 1st goal was with 16 years old against Argentina in 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 Airton Senna, Race Car Driver She modernized the role of the president´s wife and left a profound mark on Brazilian social policy. Ruth Cardoso, Anthropologist She is the highest-paid model in the world. She has appeared on more magazine covers than any other model. Gisele Bundchen, Model and Film Actress He has a successful international career, having joined the cast of Lost, The movie 300 and nowadays the movie CHE, El Argentino. Rodrigo Santoro, Actor

8 LOCATION

9 Land area: 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 BRAZILIAN FACTS AND FIGURES BELGIAN FACTS AND FIGURES Land area: 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

10 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): Agriculture 18% Industry 20% Services 53% Unemployed 9% USA 21% Argentina 8% China 6% Netherlands 6% Others 59% Currency: Euro GDP 2008: US$ billion GDP per capita: US$36,235 Employment (% of total): Main Exports (Type): Chemicals, Transport equipment, Machinery, Food, drink and tobacco Destinations (% total): Agriculture 2% Industry 23% Services 68% Unemployed 7% Germany 15% France 13% Netherlands 9% UK 7% EU 56%

11 BRAZILIAN FACTS AND FIGURES BELGIAN FACTS AND FIGURES Main Imports (Type): Machines & electrical equipment Chemical products Oil derivatives Transport equipment & part Main countries of origin: USA 18% Arg 9% Germany 8% Japan 6% Others 59% Main Imports (Type): Food and animals Machinery Transport equipment Chemicals Food, drink and tobacco Main countries of origin: Netherlands 15% Germany 13% France 10% UK 5% EU 57%

12 MACRO REGIONS OF BRAZIL: OVERVIEW North Northeast Centralwest Southeast South Economy Data GDP (2008) – US$ 1.9 trillions 10th world´s largest economy GDP Per Capita – US$ Portion of GDP per states 11% 63% 16% 5%

13 NORTH REGION ACRE RONDÔNIATOCANTINS PARÁAMAZONAS RORAIMA AMAPÁ 15,022,060: population GDP - US$ 100 billions ,2 km²: total area US$ 3,044 (Per Capita) Contributes with a minor GDP MAIN ACTIVITIES: EXTRACTION LÁTEX MINING EXPLOITATION IRON VEGETAL PLANTATION AÇAÍ

14 NORTHEAST REGION 51,609,027: population GDP - US$ 200 billions ,0 km²: total area US$ 2,310 (Per Capita) MAIN ACTIVITIES: EXPLOITATION OIL TOURISM In SALVADOR PRODUCTION SUGAR RIO GRANDE DO NORTE PARAÍBA PERNAMBUCO BAHIA MARANHÃO CEARÁ PIAUÍ ALAGOAS SERGIPE *More than 1 billion inhabitants.

15 CENTRAL-WEST REGION 13,269,517: population GDP - US$ 100 billions ,5 km²: total area US$ 6,136 (Per Capita) MAIN ACTIVITIES: CATTLE BREEDINGMINING MANGANESE TOURISM In PANTANAL * COUNTRY´S FEDERAL CAPITAL MATO GROSSO GOIÁS DISTRITO FEDERAL MATO GROSSO DO SUL

16 SOUTHEAST REGION 77,857,758: population GDP - US$ 1,2 trillions ,292 km²: total area US$ 6,499 (Per Capita) RIO DE JANEIRO ESPÍRITO SANTOS MINAS GERAIS SÃO PAULO

17 SOUTHEAST REGION 41,055,734: population GDP - US$ 750 billions ,8 km²: total area US$ 10,787 (Per Capita) SOME OF THE MAIN ACTIVITIES: BOVESPAAUTOMOTIVE INDUSTRY PRODUCTION ETHANOL IT´S AMONG THE 5 MAJOR METROPOLITAN AREAS IN THE WORLD. US$ 2.5 billions Daily trade volume Sugarcane SÃO PAULO

18 SOUTHEAST REGION 15,561,720: population GDP - US$ 275 billions ,0 km²: total area US$ 7,434 (Per Capita) MAIN ACTIVITIES: SIDERURGICALPETROLEUM INDUSTRY TOURISM CARNIVAL THE 2ND MOST RICHEST STATE OF THE COUNTRY. INDUSTRY RIO DE JANEIRO Vale do Rio DocePetrobrás

19 SOUTHEAST REGION 19,479,356: population GDP - US$ 130 billions km²: total area US$ 4,206 (Per Capita) SOME OF THE MAIN ACTIVITIES: STEEL SIDERURGYMINING MINAS GERAIS GOLD SERVICE SECTOR: 47.1% of the GDP INDUSTRIAL SECTOR: 44.1% of the GDP Usiminas Rio Paracatu INVESTMENT: MUS$ 550 PRODUCTION INCREASE OF 5,4 ktpy TO 17,2 ktpy 200 NEW JOB POSITIONS SALES: MUS$ 280 IN NOV 2008

20 SOUTH REGION 26,729,883: population GDP - US$ 300 billions km²: total area US$ 5,549 (Per Capita) SOME OF THE MAIN ACTIVITIES: AUTOMOTIVEWINE PRODUCING INDUSTRYMiolo, RS RIO GRANDE DO SUL SANTA CATARINA PARANÁ Volkswagen VEGETAL EXTRACTION WOOD (Pinheiro do Paraná)

21 BRAZIL´S PERFORMANCE BRAZILIAN BALANCE OF PAYMENTS /07 In MUS$ ExportsImportsBalance

22 BRAZIL´S PERFORMANCE MAIN PRODUCTS OF EXPORTS (% OF TOTAL) – 2001/07 MAIN PRODUCTS OF IMPORTS (% OF TOTAL) – 2001/07 TRANSPORT MAT. MACH. AND EQUIP. METALLURGY SOYA CHEMICAL MINERALS OIL AND FUEL MEAT SUGAR/ALCOHOL SHOES/LEATHER PAPER COFFEE OTHERS MACHINES CHEMICAL FUELS TRANSP MATERIAL ANIMAL/VEGETAL METALS CIENTIFIC EQUIP. TEXTILES COFFEE OTHERS

23 BRAZIL´S PERFORMANCE BRAZILIAN EXPORTS BY COUNTRY AND CONTINENT (% OF TOTAL) – 2001/07 BRAZILIAN IMPORTS BY COUNTRY AND CONTINENT (% OF TOTAL) – 2001/07 EUROPE UNITED STATES SOUTH AMERICA ASIA AFRICA MIDDLE EAST OTHERS EUROPE UNITED STATES SOUTH AMERICA ASIA AFRICA MIDDLE EAST OTHERS

24 BRAZIL´S KEY CONCEPTS FAMILYRELATIONSHIPSTIME CENTRE OF ITS SOCIAL STRUCTURE TEND TO BE LARGE AND CLOSE-KNIT NEPOTISM IN BUSINESS DEPEND ON RELATIONSHIPS WITH OTHERS (* SUPERFICIALITY) SPEND TIME GETTING TO KNOW THEM KNOWING DIRECT THE RIGHT PEOPLE HELP VERY RELAXED PROACTIVITY (NOT COMMON) NEGOTIATIONS CAN TAKE MUCH LONGER MEETINGS CAN BE DELAYED OR CANCELLED WITHOUT PRIOR WARNING

25 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 ALSO SERVE TO SOCIALIZE AND SPEND TIME TOGETHERMEALS BRAZILIANS ARE QUITE CONSCIOUSFASHION SCHEDULE 2-3 WEEKS IN ADVANCEAPPOINTMENTS DUE TO THE CLIME, DAILY SHOWERSHIGIENE BEND THE RULES WITH THE JEITINHO BRASILEIROBUREACRACY PORTUGUESE (SPANISH UNDERSTOOD IN BIG CITIES)LANGUAGE WORRY ABOUT THE WATER (COOKED FOOD)

26 STRUCTURE AND HIERARCHY IN BRAZILIAN COMPANIES VERTICAL HIERARCHIES LITTLE DELEGATION LOW EMPOWERMENT MEN TEND TO DOMINATE DETERMINED BY ECONOMIC STATUS DISCRIMINATION THERE ARE LAWS AGAINST IT BUSINESS PRACTICES IN BRAZIL THE MOST COMMON GREETINGHANDSHAKES NOT TOO MUCHUSE OF TITLES ARE PREFERRED INSTEAD OF SMEETINGS MORE IMPORTANT THAN THE COMPANYTHE INDIVIDUAL SHOWS YOU ARE PAYING ATTENTIONEYE CONTACT NEVER START BEFORE YOUR HOST DOESDISCUSSION DO ACCEPT. SAYING NO CAN BE SEEN AS INSULTINGCOFFEE CLASS ASSOCIATED TO SOCIAL CLASS AND ECONOMIC STATUS ARROGANCE

27 BRAZILIAN BUSINESS ETIQUETTE (DO´S AND DONT´S) IT´S BETTER TO SCHEDULE BETWEEN MEETINGSEXTRA TIME EXPECT TO BE WHILE YOU ARE TALKINGINTERRUPTED TOPICS: SOCCER, FAMILY AND CHILDRENGOOD CONVERSATION DEALINGS: DON´T RUSHBUSINESS AVOID PRESSING FORFINAL DECISIONS IMPATIENCE OR FEELINGS: DON´T SHOWFRUSTRATION TOPICS: CRIME, CORRUPTION, DEFORESTATION, ARGENTINA, POLITICS, POVERTY, RELIGION BAD CONVERSATION DON´T MAKE IT PUBLICLYCRITICISE

28 FINAL CONSIDERATIONS NORTHEAST SOUTHEAST US$ 2,310 (Per Capita) US$ 6,499 (Per Capita) FLANDERS WALLONIA 27,356 (Per Capita) 19,858 (Per Capita) BUSINESS ASPECTS: SIMILAR IN BRAZIL (DIPLOMACY) BUSINESS ASPECTS: DIRECT IN THEIR SPEECH BUSINESS ASPECTS: POOR REGION MORE RELAXED NOT SO RELIABLE BUSINESS ASPECTS: RICH REGION MORE STRESSED STRICT TO THE POINT

29 By Lieven Cooreman


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