It’s Brazil. Largely known for its gorgeous beaches, soccer balls and party atmosphere, focusing on business might be a secondary thought. But the fact of the matter is that Brazil is the largest economy in Latin America. According to statistics by the World Bank, in 2014 Brazil was ranked 7th in GDP in the world. While the numbers pale in comparison to the behemoth economies of the United States and China (ranked 1&2), they were still responsible for nearly $2.5 trillion in gross product (World Bank 2014). This can make them a desirable trading partner in the U.S. and worldwide.
In traveling to Brazil for business, you may notice some varying cultural differences. First of all, the people of Brazil are largely a religious bunch. In fact, 92% of the population claims to be religiously affiliated with 65% being Roman Catholic and nearly 90% being of a Christian denomination (Wikipedia). The native language is Portuguese but many different dialects exist as well as different languages may be spoken depending on what part of the country you find yourself in. Brazil is somewhat of a melting pot with strong Eurasian influences which includes German, Polish, Italian and even Japanese (Moran, Abramson, Moran. 2014) languages and dialects which are spoken in the country. In studying the culture, you can certainly get a step ahead with doing business.
This iconic image of Jesus over Rio de Janeiro in Brazil shows the Christian nature of the citizens (http://www.durhamchurchnc.org/2012/06/26/high-and-lifted-up/).
Now that you know the background, what does this mean for accomplishing business goals? It’s an interesting question for sure. I’ve taken the liberty of gathering what I think are a couple of relevant and important points.
- “Bribes” vs. “Gifts”: What is to be done here? In our learnings, there seems to be some question regarding the policy around this. In the U.S., ethics around the giving of gifts or money to secure a contract can be a fine line to follow. In Brazil, there is a certain expectation that you, as a business person, will be willing to pay out a certain amount (Moran, et al. 2014). While you may feel like this is not something you are comfortable with, you also have to remember where you are at in the world. Do you personal ethics allow it? Is this just learned behavior? Ultimately, that is something for you to decide.
- A local partner is critical: This is not news to people discussing International business. It’s always good to have someone local to let you know what to do and when to do it. In Brazil, this is an especially prominent need. According to Forbes magazine, the legal and tariff system understanding is vital. In a case study, connecting with a liaison is important. Mike Seppo, CEO for Major League Gambling (MLG) stated, “It’s really critical because of the political and tax environment in Brazil.” (Burg, 2014).
All and all, Brazil can be a profitable and contributing business partner. It really depends on what your business ideals and risks can withstand. And also your ethical tolerances. I guess this is something business needs to decide. Are the religious, cultural and political implications something that you can deal with? Do the research for your plan and decide.
Burg, N. 2014. July 15. Retrieved from http://www.forbes.com/sites/hsbc/2014/07/15/5-key-things-to-know-before-doing-business-in-brazil/
http://databank.worldbank.org/data/download/GDP.pdf
Moran, R.T., Abramson, N.R. and Moran, S.V. (2014) Managing Cultural Differences. Routledge, New York.
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