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By Lieven Cooreman
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Doing Business 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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What is ?
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The distinct features of the brazilian and of Brazil.
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know A bit about Next...
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THE CULTURE 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 1957. 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. 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 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 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 Brazilian music Style popularized by Tom Jobim and Vinicius de Moraes. Evolved from samba but is more complex harmonically. 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. Nossa Senhora Aparecida do Brasil Church, SP 74% of Brazilian are Catholic Indians | Pedro Álvares Cabral´s ship April 22, 1500 | Porto Seguro (BA) 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). Sculpture of Aleijadinho He was a Colonial Brazil-born sculptor and architect, noted for his works on and in various churches of Brazil.
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LOCATION
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Population density: 337 km² Life expectancy: Men 76yrs | Women 83yrs
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 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
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Employment (% of total):
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$ billion GDP per capita: US$36,235 Employment (% of total): Main Exports (Type): Chemicals, Transport equipment, Machinery, Food, drink and tobacco Destinations (% total): Agriculture 18% Industry 20% Services 53% Unemployed 9% Agriculture 2% Industry 23% Services 68% Unemployed 7% USA 21% Argentina 8% China 6% Netherlands Others 59% Germany 15% France 13% Netherlands 9% UK 7% EU 56%
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Machines & electrical equipment Chemical products Oil derivatives
BRAZILIAN FACTS AND FIGURES BELGIAN FACTS AND FIGURES Main Imports (Type): Machines & electrical equipment Chemical products Oil derivatives Transport equipment & part Main countries of origin: Main Imports (Type): Food and animals Machinery Transport equipment Chemicals Food, drink and tobacco Main countries of origin: USA 18% Arg 9% Germany 8% Japan 6% Others 59% Netherlands 15% Germany 13% France 10% UK 5% EU 57%
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North 5% Northeast 11% 5% Centralwest Southeast 63% South 16%
MACRO REGIONS OF BRAZIL: OVERVIEW Economy Data GDP (2008) – US$ 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%
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EXTRACTION MINING EXPLOITATION VEGETAL PLANTATION LÁTEX IRON AÇAÍ
NORTH REGION ACRE RONDÔNIA TOCANTINS PARÁ AMAZONAS RORAIMA AMAPÁ ,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
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EXPLOITATION TOURISM PRODUCTION OIL In SALVADOR SUGAR
NORTHEAST REGION RIO GRANDE DO NORTE PARAÍBA PERNAMBUCO BAHIA MARANHÃO CEARÁ PIAUÍ ALAGOAS SERGIPE ,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
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CATTLE BREEDING MINING TOURISM MANGANESE In PANTANAL
CENTRAL-WEST REGION MATO GROSSO GOIÁS DISTRITO FEDERAL MATO GROSSO DO SUL ,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
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924.511,292 km²: total area 77,857,758: population
SOUTHEAST REGION ,292 km²: total area RIO DE JANEIRO ESPÍRITO SANTOS MINAS GERAIS SÃO PAULO 77,857,758: population GDP - US$ 1,2 trillions US$ 6,499 (Per Capita)
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IT´S AMONG THE 5 MAJOR METROPOLITAN AREAS IN THE WORLD.
SOUTHEAST REGION ,8 km²: total area SÃO PAULO 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
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THE 2ND MOST RICHEST STATE OF THE COUNTRY.
SOUTHEAST REGION 43.696,0 km²: total area RIO DE JANEIRO 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
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PRODUCTION INCREASE OF 5,4 ktpy TO 17,2 ktpy
SOUTHEAST REGION km²: total area MINAS GERAIS 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 Usiminas GOLD SALES: MUS$ 280
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WOOD (Pinheiro do Paraná)
SOUTH REGION km²: total area RIO GRANDE DO SUL SANTA CATARINA PARANÁ 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)
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BRAZILIAN BALANCE OF PAYMENTS - 2001/07
BRAZIL´S PERFORMANCE BRAZILIAN BALANCE OF PAYMENTS /07 In MUS$ 20000 40000 60000 80000 100000 120000 140000 160000 180000 2001 2002 2003 2004 2005 2006 2007 Exports Imports Balance
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MAIN PRODUCTS OF EXPORTS MAIN PRODUCTS OF IMPORTS
BRAZIL´S PERFORMANCE MAIN PRODUCTS OF EXPORTS (% OF TOTAL) – 2001/07 MAIN PRODUCTS OF IMPORTS (% OF TOTAL) – 2001/07 OTHERS TRANSPORT MAT. MACH. AND EQUIP. METALLURGY SOYA CHEMICAL MINERALS OIL AND FUEL MEAT SUGAR/ALCOHOL SHOES/LEATHER PAPER COFFEE MACHINES CHEMICAL FUELS TRANSP MATERIAL ANIMAL/VEGETAL METALS CIENTIFIC EQUIP. TEXTILES COFFEE OTHERS
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BRAZILIAN EXPORTS BY COUNTRY AND CONTINENT (% OF TOTAL) – 2001/07
BRAZIL´S PERFORMANCE BRAZILIAN EXPORTS BY COUNTRY AND CONTINENT (% OF TOTAL) – 2001/07 BRAZILIAN IMPORTS BY COUNTRY AND CONTINENT (% OF TOTAL) – 2001/07 OTHERS OTHERS EUROPE UNITED STATES SOUTH AMERICA ASIA AFRICA MIDDLE EAST EUROPE UNITED STATES SOUTH AMERICA ASIA AFRICA MIDDLE EAST
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CENTRE OF ITS SOCIAL STRUCTURE DEPEND ON RELATIONSHIPS WITH OTHERS
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 SPEND TIME GETTING TO KNOW THEM NEGOTIATIONS CAN TAKE MUCH LONGER NEPOTISM IN BUSINESS KNOWING DIRECT THE RIGHT PEOPLE HELP MEETINGS CAN BE DELAYED OR CANCELLED WITHOUT PRIOR WARNING
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MORE EUROPEAN THAN AMERICAN
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)
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DETERMINED BY ECONOMIC STATUS
STRUCTURE AND HIERARCHY IN BRAZILIAN COMPANIES VERTICAL HIERARCHIES LITTLE DELEGATION LOW EMPOWERMENT MEN TEND TO DOMINATE CLASS DETERMINED BY ECONOMIC STATUS ARROGANCE ASSOCIATED TO SOCIAL CLASS AND ECONOMIC STATUS 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 S 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
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IT´S BETTER TO SCHEDULE BETWEEN MEETINGS
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
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SIMILAR IN BRAZIL (DIPLOMACY)
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)
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By Lieven Cooreman
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