Investing and Doing Business in Latin America - PowerPoint PPT Presentation

Loading...

PPT – Investing and Doing Business in Latin America PowerPoint presentation | free to download - id: 3b1d62-MGQwY



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Investing and Doing Business in Latin America

Description:

Investing and Doing Business in Latin America Where would you invest $1 million? Willis Dobbs Amy Forget J.B. Napier Geographic Overview Argentina Argentina ... – PowerPoint PPT presentation

Number of Views:271
Avg rating:3.0/5.0
Slides: 62
Provided by: www2Mccom
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Investing and Doing Business in Latin America


1
Investing and Doing Business in Latin America
  • Where would you invest 1 million?

Willis Dobbs Amy Forget J.B. Napier
2
Geographic Overview
3
Country Scorecard
Criteria
Chile
Costa Rica
Mexico
Peru
Argentina
Brazil
B
C
B
B
B
B
  • Currency Risk
  • Political Risk
  • Economic Risk
  • Operational Environment
  • Legal Risk
  • Tax Environment
  • Security / Corruption
  • Exports / Imports
  • Per Capita GDP

B
B
B
C-
B
C
B
D
C
B
C
B
B
A-
C
C
B
C
B
A-
B
B
B
B
B
A-
B
B
C
B
B
B
B
C-
C
C
C
B
A
B-
A-
C
C
B
C
A-
C
C
B
B
B
B-
Score
C
C
4
Argentina
5
Argentina
  • Background
  • About the size of the U.S. east of the
    Mississippi River
  • Capital Buenos Aires
  • Population 36.02MM
  • Terrain Predominately temperate with extremes
    ranging from subtropical in the north, to
    arid/sub Antarctic in the south
  • Language Spanish
  • Literacy 97
  • Religions Catholic 92, Protestant 2, Jewish
    2, other 4
  • Government Federal Republic
  • Three branches Executive, Legislative, Judicial
  • Suffrage 18 yrs old

6
Argentina
  • Economy
  • 2001 GDP 263 B
  • Industry 28, Agriculture 5
  • Key industries Agriculture, Food processing, oil
    refining, machinery and equipment, textiles,
    chemicals and petrochemicals
  • Per Capita GDP (2001) 7,400
  • MERCOSUR, EU, NAFTA, Chile are largest trading
    partners
  • Export Markets
  • Grains, meats, oilseeds, manufactured products
  • Imports Markets
  • Machinery, vehicles and transport products,
    chemicals
  • Customs union pact with Brazil, Paraguay, and
    Uruguay (MERCOSUR)

7
Argentina
  • Culture and Customs
  • During greetings, it is considered polite to
    acknowledge the most senior person first.
  • A firm, inviting handshake is also an important
    part of making a first impression. In accordance
    with Argentine business protocol, women should
    initiate all handshakes with men.
  • Smiling is also very important, and does a great
    deal in establishing good will.
  • At large social functions, you may introduce
    yourself if others arent around to make
    introductions. At smaller gatherings, however,
    you are expected to wait for the host to
    introduce you to other guests.
  • Among close male friends, shaking hands or
    embracing can be common greetings. Argentine men
    might also kiss female friends who are especially
    close, while women who are good friends usually
    kiss each other.
  • Argentines generally converse in closer proximity
    than North Americans do your best to adapt to
    this practice--it may be taken personally if you
    back away from someone.
  • When you ask for directions, be aware that
    Argentines will sometimes make up an answer,
    rather than admit that they do not know the
    answer to your question.
  • A dismissive sweeping gesture--starting under the
    chin and proceeding up over the top of the head--
    indicates I dont know or I dont care.
  • Do not make the okay sign (thumb up and index
    finger joined) or the thumbs up sign, since
    these are considered profane gestures.

8
Argentina
  • Doing business in Argentina
  • In all likelihood, business will move at a
    relatively slow pace. Argentina is an extremely
    bureaucratic and litigious country each decision
    has to be approved by several people. Moreover,
    it may be necessary to take several trips before
    the transaction concludes.
  • Senior management usually has the final say in
    the decision-making process. Favorable decisions
    frequently depend upon the personal relationship
    that has been established with your side-not
    necessarily the quality of the product or service
    being purchased. Forming a solid rapport with
    your Argentine contact in senior management is of
    crucial importance.
  • Each time your company changes its
    representative, this can be very disruptive
    because a new personal relationship will have to
    be established before business can proceed again.
  • Unlike many other countries, there are no
    intricate rituals involved in exchanging business
    cards. Upon receiving a card, you are expected
    only to take a moment to look at it and express
    thanks.
  • Making small talk and smiling frequently are
    vital to establishing rapport with your
    colleagues. It would be wrong to assume that you
    can joke with Argentines from the start. To imply
    that someone or something is not to be taken
    seriously is a grave insult in this culture.
  • Hierarchy is important in Argentine business
    culture senior executives and others of status
    always are given the most respect. Moreover, top
    executives will play key roles in the final
    decision. Needless to say, your professional
    status and ranking will be important to your
    Argentine counterparts.
  • Unless the whole contract is signed, each portion
    is still subject to renegotiation.

9
Argentina
  • Business Dress
  • If you are visiting in the summer months, ensure
    that you bring lightweight clothing. Coats and
    sweaters are necessary during the winter, since
    central heating is not always available. It is
    also important to remember that the seasons in
    South America are the reverse of those in North
    America.
  • In business situations, conservative, dark suits
    and ties are standard attire for men. Ensure
    that your shirts are well-pressed and that your
    shoes are polished to a high gloss.
  • Wardrobe options for women include elegantly
    conservative business suits, dresses, or skirt
    and blouse combinations.
  • In Argentina, clothing is influenced by European
    fashion, remaining on the modest and sedate side.

10
Argentina
  • Conversations
  • Expect Argentines to speak Castilian
    Spanish--with an Italian accent--rather than the
    Mexican dialect of Spanish.
  • Argentines like to engage in small talk.
    Generally, they are very sociable and take a
    genuine interest in cultural matters..
  • Good Topics
  • the arts, restaurants, wine sports, such as
    futbol (soccer) --U.S. style football is called
    futbol americano the area of Argentina youre
    visiting your international travels the beauty
    of local parks, gardens complimenting the
    children of your hosts complimenting the meal,
    the home of your hosts Theater, films, opera
  • Topics to Avoid
  • criticizing or joking about Argentine culture and
    traditions personal questions, inquiries about
    family (at least until you have become better
    acquainted with the other person) political
    opinions of any kind praising Argentinas
    neighbors, particularly Chile (Argentina has
    fought wars with all of these countries)
    negative comments about Argentinas government,
    cities, or sports teams religion Falkland
    Islands War (at all costs) -- If the subject is
    unavoidable refer to the Islands by the Argentine
    name, Islas Malvinas.

11
Brazil
12
Brazil
  • Background
  • Slightly smaller than the U.S.
  • Capital Brasilia
  • Population 170MM
  • Terrain Dense forests in north including Amazon
    Basin, semi-arid along northeast coast,
    mountains, hills, and rolling plains in
    southwest, coastal lowlands
  • Language Portuguese
  • Literacy 81
  • Religions Catholic 80
  • Government Federative Republic
  • Three branches Executive, Legislative, Judicial
  • Suffrage 18 yrs old

13
Brazil
  • Economy
  • 2001 GDP 500 B
  • Agriculture 9, Industry 29
  • coffee, soybeans, sugarcane, cocoa, rice, beef,
    corn, oranges, cotton, wheat, and tobacco, steel,
    aircraft, chemicals, petrochemicals, footwear,
    machinery, vehicles, auto parts, consumer
    durables, cement, lumber
  • Per Capita GDP (2001) 3,000
  • Natural resources Iron ore, manganese, bauxite,
    nickel, uranium, gemstones, oil, wood, and
    aluminum. Brazil has 12 of the world's fresh
    water.
  • Trade
  • Exports - 58.2 B
  • US 24 Argentina 9, Netherlands 5, Germany 4,
    Japan 3, China 3, Belgium 3, Mexico 3
  • Imports - 56 B
  • United States 23, Argentina 11, Germany 9,
    Japan 5, Italy 4

14
Brazil
  • Culture and Customs
  • Brazilians usually greet each other with long
    handshakes and noticeable eye contact close
    friends will often embrace.
  • Hugging and backslapping are common among
    Brazilians, but they will usually refrain from
    using these gestures with foreigners, who may not
    be as receptive to this kind of contact.
  • Women will often greet each other by touching
    cheek to cheek, then kissing the air, alternating
    cheeks--twice if they are married and three times
    if they are single. Men greeting women are
    expected to do the same.
  • Frequent touching of the arms, hands, or
    shoulders will occur during the course of a
    conversation.
  • Maintain a soft-spoken manner.
  • Pulling at one's earlobe is a sign of
    appreciation.
  • Flicking the fingertips underneath the chin
    indicates that you don't know or understand the
    answer to a question.
  • To beckon someone, extend your palm face down and
    wave your fingers toward your body.
  • The "O.K." sign (using your first finger and
    thumb to form a circle) is considered vulgar.
    When things are going well, it's acceptable to
    use the "thumbs up" sign.

15
Brazil
  • Doing business in Brazil
  • With the exception of Sao Paulo, Brazilian
    business culture generally has a slow pace and an
    informal atmosphere. Expect an air of formality,
    however, during initial meetings.
  • An important part of Brazilian business protocol
    is to begin a meeting with good-natured "small
    talk." Delving immediately into business will
    only cause annoyance.
  • Make sure you have a local accountant, "notario"
    (whose function is similar to that of a lawyer),
    or lawyer on hand for all contract issues.
    Brazilians will only resent an "outside" legal
    presence.
  • Never leave as soon as a meeting is over. This
    action will only insult your colleagues and leave
    them with the impression that you think that you
    have more important things to do.
  • Brazilian business culture is intensely
    hierarchical only the highest person in
    authority makes the final decision. Be tactful
    and diplomatic. If you are too direct, Brazilians
    will not value what you have to say.
  • In Brazilian business culture, English is widely
    spoken.
  • Be aware that it will probably take several trips
    to bring the negotiations to a satisfactory
    conclusion.

16
Brazil
  • Doing business in Brazil
  • Changing your negotiating team can jeopardize the
    entire contract and is a major breach of
    Brazilian business protocol. Moreover, you will
    have to emphasize that you value people and
    relationships over business.
  • Keep in mind that one common criticism Brazilians
    have of Americans is that they "leap right into
    business" before making the effort to build a
    personal relationship.
  • Bring a plentiful supply of business cards, since
    Brazilians tend to be very keen about exchanging
    them.
  • Ensure that your business cards, promotional and
    presentation materials, or any other documents
    required in your dealings are printed in both
    Portuguese and English.
  • Usually, documents aren't signed immediately
    after an agreement is reached a handshake and a
    person's word are considered sufficient. The
    necessary papers will be prepared and signed
    later.

17
Brazil
  • Business Dress
  • Keep in mind that the seasons in Brazil are
    opposite to those in North America July is in
    the middle of winter and January is in the
    summer.
  • Brazilian business culture tends to be highly
    conscious of dress. Some people may not even do
    business with you if they find your appearance
    wanting.
  • Men should wear dark suits in black, charcoal
    gray, or navy blue. Select ties that are
    well-made and conservative. Ensure that your
    shoes are polished and kept in excellent
    condition. In Brazilian business culture,
    three-piece suits give the impression that you
    are in an executive position two-piece suits are
    associated with office workers. On occasions for
    business entertaining, dark suits for men are the
    appropriate formal wear.
  • Wardrobe options for women include conservative
    dresses, suits, pantsuits, skirts, and blouses.
    While you should dress conservatively, strive for
    an elegant, rather than "frumpish", appearance.
    On occasions for business entertaining, elegant
    dresses or skirts and blouses are appropriate
    formal wear for women.
  • It's usually frowned upon when a woman wears
    anything that is perceived as masculine.
  • Women should wear makeup and ensure that their
    nails are manicured.

18
Brazil
  • Conversations
  • The language of this country is Portuguese. Make
    an effort to learn different words and
    phrases--don't worry about making mistakes.
    Brazilians will appreciate your efforts even if
    your vocabulary is limited.
  • Although Brazilians are very reticent about their
    own personal lives, they may nevertheless ask
    intrusive questions about your income, religion,
    and marital status. If you don't want to reveal
    this information, remain polite but give a vague,
    indirect, answer.
  • Brazilians also consider themselves Americans.
    Consequently, don't use the phrase "in America"
    when referring to the United States.
  • Good Topics
  • your travels, food, positive aspects of Brazilian
    industry, Brazilian dance and other aspects of
    the country's arts, Brazilians are enthusiastic
    "futebol" (soccer) fans and this subject usually
    stimulates a lively conversation. Other popular
    sports include basketball, fishing, horse racing,
    tennis, and volleyball.
  • Topics to avoid
  • ethnic and/or class differences, economic
    problems, politics, Argentina, Brazil's main
    rival, criticizing any aspect of Brazil, ethnic
    jokes, personal questions--particularly those
    regarding family, income, and status in the
    workplace

19
Brazil
  • Background
  • Slightly smaller than the U.S.
  • Capital Brasilia
  • Population 170MM
  • Terrain Dense forests in north including Amazon
    Basin, semi-arid along northeast coast,
    mountains, hills, and rolling plains in
    southwest, coastal lowlands
  • Language Portuguese
  • Literacy 81
  • Religions Catholic 80
  • Government Federative Republic
  • Three branches Executive, Legislative, Judicial
  • Suffrage 18 yrs old

20
Brazil
  • Economy
  • 2001 GDP 500 B
  • Agriculture 9, Industry 29
  • coffee, soybeans, sugarcane, cocoa, rice, beef,
    corn, oranges, cotton, wheat, and tobacco, steel,
    aircraft, chemicals, petrochemicals, footwear,
    machinery, vehicles, auto parts, consumer
    durables, cement, lumber
  • Per Capita GDP (2001) 3,000
  • Natural resources Iron ore, manganese, bauxite,
    nickel, uranium, gemstones, oil, wood, and
    aluminum. Brazil has 12 of the world's fresh
    water.
  • Trade
  • Exports - 58.2 B
  • US 24 Argentina 9, Netherlands 5, Germany 4,
    Japan 3, China 3, Belgium 3, Mexico 3
  • Imports - 56 B
  • United States 23, Argentina 11, Germany 9,
    Japan 5, Italy 4

21
Brazil
  • Culture and Customs
  • Brazilians usually greet each other with long
    handshakes and noticeable eye contact close
    friends will often embrace.
  • Hugging and backslapping are common among
    Brazilians, but they will usually refrain from
    using these gestures with foreigners, who may not
    be as receptive to this kind of contact.
  • Women will often greet each other by touching
    cheek to cheek, then kissing the air, alternating
    cheeks--twice if they are married and three times
    if they are single. Men greeting women are
    expected to do the same.
  • Frequent touching of the arms, hands, or
    shoulders will occur during the course of a
    conversation.
  • Maintain a soft-spoken manner.
  • Pulling at one's earlobe is a sign of
    appreciation.
  • Flicking the fingertips underneath the chin
    indicates that you don't know or understand the
    answer to a question.
  • To beckon someone, extend your palm face down and
    wave your fingers toward your body.
  • The "O.K." sign (using your first finger and
    thumb to form a circle) is considered vulgar.
    When things are going well, it's acceptable to
    use the "thumbs up" sign.

22
Brazil
  • Doing business in Brazil
  • With the exception of Sao Paulo, Brazilian
    business culture generally has a slow pace and an
    informal atmosphere. Expect an air of formality,
    however, during initial meetings.
  • An important part of Brazilian business protocol
    is to begin a meeting with good-natured "small
    talk." Delving immediately into business will
    only cause annoyance.
  • Make sure you have a local accountant, "notario"
    (whose function is similar to that of a lawyer),
    or lawyer on hand for all contract issues.
    Brazilians will only resent an "outside" legal
    presence.
  • Never leave as soon as a meeting is over. This
    action will only insult your colleagues and leave
    them with the impression that you think that you
    have more important things to do.
  • Brazilian business culture is intensely
    hierarchical only the highest person in
    authority makes the final decision. Be tactful
    and diplomatic in Peru. If you are too direct,
    Peruvians will not value what you have to say.
  • In Brazilian business culture, English is widely
    spoken.
  • Be aware that it will probably take several trips
    to bring the negotiations to a satisfactory
    conclusion.

23
Brazil
  • Doing business in Brazil
  • Changing your negotiating team can jeopardize the
    entire contract and is a major breach of
    Brazilian business protocol. Moreover, you will
    have to emphasize that you value people and
    relationships over business.
  • Keep in mind that one common criticism Brazilians
    have of Americans is that they "leap right into
    business" before making the effort to build a
    personal relationship.
  • Bring a plentiful supply of business cards, since
    Brazilians tend to be very keen about exchanging
    them.
  • Ensure that your business cards, promotional and
    presentation materials, or any other documents
    required in your dealings are printed in both
    Portuguese and English.
  • Usually, documents aren't signed immediately
    after an agreement is reached a handshake and a
    person's word are considered sufficient. The
    necessary papers will be prepared and signed
    later.

24
Brazil
  • Business Dress
  • Keep in mind that the seasons in Brazil are
    opposite to those in North America July is in
    the middle of winter and January is in the
    summer.
  • Brazilian business culture tends to be highly
    conscious of dress. Some people may not even do
    business with you if they find your appearance
    wanting.
  • Men should wear dark suits in black, charcoal
    gray, or navy blue. Select ties that are
    well-made and conservative. Ensure that your
    shoes are polished and kept in excellent
    condition. In Brazilian business culture,
    three-piece suits give the impression that you
    are in an executive position two-piece suits are
    associated with office workers. On occasions for
    business entertaining, dark suits for men are the
    appropriate formal wear.
  • Wardrobe options for women include conservative
    dresses, suits, pantsuits, skirts, and blouses.
    While you should dress conservatively, strive for
    an elegant, rather than "frumpish", appearance.
    On occasions for business entertaining, elegant
    dresses or skirts and blouses are appropriate
    formal wear for women.
  • It's usually frowned upon when a woman wears
    anything that is perceived as masculine.
  • Women should wear makeup and ensure that their
    nails are manicured.

25
Brazil
  • Conversations
  • The language of this country is Portuguese. Make
    an effort to learn different words and
    phrases--don't worry about making mistakes.
    Brazilians will appreciate your efforts even if
    your vocabulary is limited.
  • Although Brazilians are very reticent about their
    own personal lives, they may nevertheless ask
    intrusive questions about your income, religion,
    and marital status. If you don't want to reveal
    this information, remain polite but give a vague,
    indirect, answer.
  • Brazilians also consider themselves Americans.
    Consequently, don't use the phrase "in America"
    when referring to the United States.
  • Good Topics
  • your travels, food, positive aspects of Brazilian
    industry, Brazilian dance and other aspects of
    the country's arts, Brazilians are enthusiastic
    "futebol" (soccer) fans and this subject usually
    stimulates a lively conversation. Other popular
    sports include basketball, fishing, horse racing,
    tennis, and volleyball.
  • Topics to avoid
  • ethnic and/or class differences, economic
    problems, politics, Argentina, Brazil's main
    rival, criticizing any aspect of Brazil, ethnic
    jokes, personal questions--particularly those
    regarding family, income, and status in the
    workplace

26
Chile
27
Chile
  • Background
  • Nearly twice the size of California
  • Capital Santiago
  • Population 15.3 MM
  • Terrain Desert in north fertile central valley
    volcanoes and lakes toward the south rugged and
    complex coastline Andes Mountains on east
  • Language Spanish
  • Literacy 95
  • Religions Catholic 77 Protestant 12
  • Government Republic
  • Three branches Executive, Legislative, Judicial
  • Suffrage 18 yrs old, including foreigners
    legally resident more than 5 years

28
Chile
  • Economy
  • 2001 GDP 73.4 B
  • Commerce 18.8 (sales, restaurants, hotels)
  • Manufacturing 16.3 (mineral refining, metal,
    food/fish processing, paper/wood)
  • Financial services 15.2 (insurance, leasing,
    consulting)
  • Mining 11.4 (copper, iron ore, nitrates,
    precious metals)
  • Forestry, agriculture, fish 8.3 (wheat,
    vegetables, fruit, livestock, fish)
  • Per Capita GDP (2001) 4,800
  • Trade
  • Exports - 18.2 B
  • Copper, fishmeal, fruits, wood/paper products,
    fish, wine
  • EU 25 US 18, Japan 15, Brazil 5, Argentina
    3
  • Imports - 16.7 B
  • Petroleum, chemical products, capital goods,
    vehicles, electronics, durables
  • US 18, EU 18, Argentina 15, Brazil 7, China
    5, Japan 4, Germany 4

29
Chile
  • Culture and Customs
  • On the whole, Chileans are a warm and
    affectionate people. Greetings are typically a
    cheerful occasion involving plenty of physical
    touching.
  • You will have to speak not only at a closer
    distance, but also maintain eye contact as an
    assurance of your genuine interest.
  • Spanish is the official language, but English and
    German are frequently spoken, too.
  • Bargaining is not practiced in street markets or
    stores. Be aware that it is illegal to sell
    something and not issue a receipt. The failure to
    issue a receipt often means that the merchant is
    not declaring the sale on tax reports.
  • Slapping the right fist into a left open palm is
    perceived as obscene.
  • An open palm with the fingers separated is a
    gesture for stupid.
  • Although a sufficient tip is 10-15 in hotels
    and restaurants, you dont have to tip taxi
    drivers.
  • Point with your entire hand rather than the index
    finger.

30
Chile
  • Doing Business in Chile
  • When greeting your Chilean counterpart, it is
    very important to offer a firm handshake, while
    smiling and making eye contact. Moreover, ensure
    that you make the effort to shake hands with
    everyone present.
  • Third party introductions, through institutions
    such as banks and consulting firms, are often a
    necessary prelude to conducting business in
    Chile.
  • In Chilean business culture, interpersonal skills
    such as the ability to "fit in" and maintain
    cordial relations with the group are sometimes
    considered more important than professional
    competence and experience. Moreover, establishing
    rapport and friendship remains key to conducting
    business and effective problem-solving.
  • Conservative values prevail in politics,
    economics, and social attitudes. Honesty and
    integrity are highly valued. A sense of humor is
    appreciated, although for the most part, meetings
    remain intensely focused and serious.
  • Chileans tend to have an inherent sense of
    courtesy that sometimes causes them to say what
    they think they want you to hear, rather than
    give a candid response.
  • In negotiations, feelings sometimes take
    precedence over facts. Among Chileans,
    perceptions of the truth can be subjective and
    personal. Catholic or Protestant doctrine can
    also be a profound influence in thinking.
  • It would be a mistake to bribe your Chilean
    business associates. Although this is standard
    practice in other Latin American countries, in
    Chile it could land you in jail.

31
Chile
  • Business Dress
  • The best policy is to dress conservatively and
    formally. Dressing well is a priority here and is
    perceived as a sign of respect. Moreover, the
    business casual look (i.e., sports coat,
    khakis, casual shoes) will not be well-received.
  • The best wardrobe options for men include blue or
    gray suits, white shirts, and conservative ties.
    Women should stick with blue or gray suits and
    shoes with low heels.
  • It will be in your best interests to avoid
    wearing clothing that is extremely bright, or
    otherwise attracts attention. Regrettably,
    perhaps, an individual dress sense is likely to
    compromise your success in this country.
    Emulating the business dress of your Chilean
    peers promotes a level comfort and security that
    helps them to accept and eventually become
    friends with you.
  • Men and women who wear jewellery should select
    only conservative and understated pieces.
    Chileans may perceive you as vain and
    self-absorbed if they see you in expensive,
    eye-catching accessories.
  • If invited to dinner at someones home or to a
    restaurant, standard attire for men includes a
    suit and tie, and for women, a conservative--yet
    elegant--dress.
  • Pants or good jeans and a shirt are fine for
    casual wear. Shorts are rarely worn in public.
  • Chile has extremes in temperature from the
    beaches to the mountains. At higher altitudes,
    warmer clothes are necessary.

32
Chile
  • Conversations
  • Chileans are a very patriotic people and will
    likely take offense at negative comments of any
    kind directed at their country.
  • Refrain from using the North American
    conversation starter What do you do? If people
    wish to discuss their occupation, they will
    eventually volunteer this information.
  • Chileans perceive interruptions as a way of
    participating in conversations and displaying
    interest in what is being said. So, if you are
    interrupted, there is no need to take offense.
  • Chileans tend to have an inherent sense of
    courtesy that sometimes causes them to say what
    they think they want you to hear, rather than
    give a candid response.
  • South Americans generally converse in closer
    proximity than North Americans do your best to
    adapt to this practice--it may be taken
    personally if you back away from someone.
  • Good topics to discuss
  • The Chilean landscape/ places of interest for
    tourists in Chile, travel, sports such as skiing
    and fishing, food and wine, positive aspects of
    Chilean history, positive aspects of the Chilean
    economy, Chilean literature and art, inquiries
    about family, especially children (but dont
    probe)
  • Topics to avoid
  • criticizing any aspect of Chileeven if your
    Chilean companions making these kinds of remarks,
    the countries surrounding Chilei.e., Argentina,
    Bolivia, and Peru, politics, wars, human rights
    violations, the Araucanian Indians, ethnic and
    social classes, religion

33
Costa Rica
34
Costa Rica
  • Background
  • About twice the size of Vermont
  • Capital San Jose
  • Population 3.94 MM
  • Terrain rugged central range separates the
    eastern and western coastal areas
  • Language Spanish, with Jamaican dialect of
    English spoken around Puerto Limon
  • Literacy 95
  • Religions Roman Catholic 70 Protestant 18,
    none 8, others 4
  • Government Democratic Republic
  • Three branches Executive, Legislative, Judicial
  • Suffrage Obligatory at 18 yrs old

35
Costa Rica
  • Economy
  • 2001 GDP 15.2 B
  • Commerce Tourism 40 (hotels, restaurants,
    banks, insurance)
  • Industry 22 (electronic components, food
    processing, textiles/apparel, construction
    materials, cement, fertilizer)
  • Agriculture 13 (fruits, beef, sugar cane, rice,
    dairy, vegetables, plants)
  • Per Capita GDP (2001) 3,850
  • Trade
  • Exports - 6.1 B
  • Electronic components, fruit, coffee,
    textiles/apparel, jewelry, plants, small
    appliances, shrimp
  • US 54 Europe 21, Central America 9
  • Imports - 5.9 B
  • Electronic components, machinery, vehicles,
    consumer goods, chemicals, foods, fertilizers
  • US 56, Europe 10, Mexico 5, Central America
    5, Japan 5, Venezuela 4

36
Costa Rica
  • Culture and Customs
  • By the standards of a developed country, Costa
    Rican incomes are very low, but when compared to
    other neighbors, salaries and earnings prove to
    be much better.
  • The country's economy and industry have grown
    incredibly in the past years, but the culture
    still retains conservative tendencies.
  • Costa Ricans often lack of punctuality and quick
    decision-making, but are generally friendly and
    hospitable.
  • Costa Ricans are also extremely social, and they
    enjoy gatherings and celebrations of all sorts.
  • Most Costa Rican Catholics view their religion
    more as a tradition than as a practice or even a
    faith.
  • Many old virtues and values have faltered under
    the onslaught of foreign influence, modernity,
    and social change. Drunkenness, drug abuse, and a
    general idleness previously unknown in Costa Rica
    have intruded. And theft and burglary are
    seriously on the rise.
  • You can generally count on a Costa Ricans
    loyalty but dont count on his punctuality.
  • For most occasions casual wear is acceptable, but
    beachwear should be confined to the beach.

37
Costa Rica
  • Doing Business in Costa Rica
  • Costa Rica is one of the most vocal supporters of
    continental free trade, and already has its own
    agreement with Mexico and other countries of the
    region.
  • Men shake hands. The abrazo (hug) is rare in
    Costa Rica. Women may pat each other on the right
    forearm or shoulder instead of shaking hands.
  • Costa Ricans are the most punctual people in
    Central America.
  • Make appointments in advance by mail, fax,
    e-mail, etc., and reconfirm them before your
    arrival.
  • Business takes place on a personal basis --
    relationships are key.
  • Decisions are usually made by consensus, and
    decision makers will generally speak frankly. The
    process is slow impatience lowers your
    credibility.
  • Use titles, and be sure you use the correct
    surname. For example, address Senor Mario Sanchez
    Garcia as Senor Sanchez. Sanchez is his father's
    name, Garcia is his mother's.
  • Because of the people's respect for law and
    egalitarianism, Costa Rica has minimal corruption
    compared to the rest of the region.
  • Women generally do not play major roles in
    business. However, foreign businesswomen can do
    business in Costa Rica as long as authority and
    credibility is clearly established.

38
Costa Rica
  • Business Dress
  • Dress is conservative and not flashy.
  • Men should wear a conservative dark suit. In
    warmer climates, a jacket is optional.
  • Women should wear a dress or skirt and blouse.
    Pants are never worn by women.
  • Costa Ricans are much more formal and serious
    than other Latin Americans. Therefore, keep
    jackets on during business meetings.

39
Costa Rica
  • Conversations
  • Know about Central American politics, and why
    their former president, Oscar Arias, won the
    Nobel Peace Prize.
  • Boasting of any kind is usually frowned upon.
  • Costa Ricans call themselves Ticos (TEE-kos)
  • Politics are freely discussed because of the
    countrys stability
  • Good conversation topics children, history, art,
    families, politics, the beauty of Costa Rica
  • Bad topics any personal criticism, religion
  • Ticos can discuss things quite openly. There is
    less need to appear conciliatory, and a greater
    concern for expressing truth and honesty in order
    to move things along.
  • The ubiquitous Latin American abrazo, or embrace,
    is not generally done in Costa Rica. A firm
    handshake is the preferred greeting between men.
    Women often greet each other by touching the left
    forearm lightly. Kissing is done only when women
    know each other very well.

40
Mexico
41
Mexico
  • Background
  • Area 3x the size of TexasIts Big!
  • Capital Mexico City
  • Population 97.5MM
  • Terrain Deserts, central high plateaus and
    mountains, tropical areas near the coast
  • Language Spanish
  • Literacy 89.4
  • Teledensity 13, among the lowest in Latin
    America
  • Religions Catholic 89, Protestant 6
  • Government Federal Republic
  • Three branches Executive, Legislative, Judicial
  • Suffrage 18 yrs old

42
Mexico
  • Economy
  • 2001 GDP 557 B
  • Services 66.8 Manufacturing, Petroleum mining
    21 Agriculture 5
  • Key industries Agriculture, Manufacturing,
    Services and Commerce
  • Per Capita GDP (2001) 5,300
  • US is biggest Trading partner
  • Highly dependent on exports to US 85 of
    Mexican exports
  • Petroleum, cars, and electronic equipment
  • Imports from US
  • Auto parts, electronic equipment, and
    agricultural products
  • Strongly linked to US business cycle
  • Free Trade agreement with US, Canada , EU and
    others
  • Investment grade debt for Mexicos sovereign debt
  • Moodys (3/2000) and Fitch IBCA (1/2002)

43
Mexico
  • Culture and Customs
  • Men will shake hands during greetings. Women,
    however, will often pat each other on the right
    forearm or shoulder. If they are particularly
    close, women will hug or kiss each other on the
    cheek.
  • Women will have to initiate all handshakes with
    men.
  • A gentle grip is all that is required when
    shaking hands.
  • You will probably be greeted with a hug by the
    second or third meeting.
  • Conversations occur at a much closer physical
    distance than you may be accustomed to in the
    United States. Moving away to establish distance
    is considered unfriendly.
  • Mexican men are warm, friendly, and tend to
    initiate a lot of physical contact. They often
    touch shoulders or hold the arm of another.
    Withdrawing from these affectionate gestures will
    be perceived as an insult.
  • Eye contact should be infrequent avoid looking
    at others too intently.
  • Mexicans use the "psst-psst" sound to get
    another's attention in public. In Mexican
    business etiquette, this is not considered rude.
  • Men should avoid putting their hands in their
    pockets when in public.
  • Putting your hands on your hips signifies that
    you're making a challenge.
  • Using the Lord's name in vain, especially in
    public, is considered deeply offensive here.
  • The "O.K." gesture with the thumb and index
    finger is considered vulgar.

44
Mexico
  • Doing business in Mexico
  • Long lunches and late dinners are the norm.
    Businesses close for lunch and siesta and are
    often open before a late dinner.
  • Mexican business culture has a warm, friendly
    atmosphere, with a slower pace.
  • Mexicans will do business only with people they
    know. The key to knowing a person in Mexico is
    through at least an acquaintance with his or her
    family.
  • Families play a dominant role in Mexican society
    and are a major influence on individual behavior.
    Moreover, a variety of Mexican companies are
    family-owned.
  • Subjective feelings tend to be the basis of truth
    in Mexican business culture. Emotional appeals
    are often effective here, so emphasize how your
    Mexican counterparts will benefit personally from
    your proposal.
  • Empirical evidence and other objective facts will
    frequently be considered and used by Mexicans
    with a higher education.
  • Negotiations are usually lengthy, and will
    include a lot of "haggling."
  • Mexicans avoid directly saying "no." A "no" is
    often disguised in responses such as "maybe" or
    "We'll see." You should also use this indirect
    approach in your dealings. Otherwise, your
    Mexican counterparts may perceive you as being
    rude and pushy.
  • Handshakes at the conclusion of a meeting are
    intended to affirm what was discussed or agreed
    to.
  • When the final decision is made, ensure that it
    is followed by a written agreement.

45
Mexico
  • Business Dress
  • Dark, conservative suits and ties are the norm
    for men in Mexican business culture. Ensure that
    your shirts are well-pressed and that your shoes
    are polished to a high gloss.
  • Standard office attire for women includes
    dresses, skirted suits, or skirts and blouses. In
    Mexico, femininity is strongly encouraged in
    women's dress. Women business travelers may want
    to bring hosiery, high heels, and plenty of
    jewelry.
  • Makeup, generously applied, is also considered an
    important part of a woman's appearance here.
  • Generally speaking, Mexicans, regardless of their
    social class, dress meticulously on all
    occasions.

46
Mexico
  • Conversations
  • In conversation, Mexicans are very forthcoming
    about their families and private lives they will
    expect you to do the same.
  • Mexicans often enjoy comparing the prices of
    items sold in Mexico and other countries.
    Consequently, don't be surprised if you are asked
    about the price of certain goods in your home
    country.
  • Good Topics
  • Mexican scenery and landmarks, your immediate
    surroundings, Mexican culture and history, your
    family, your job, sports--particularly Mexican
    "futbol" (soccer), the weather
  • Topics to Avoid
  • Religion, Mexican politics, The Mexican-American
    War, illegal aliens, comparing Mexico unfavorably
    to the United States

47
Peru
48
Peru
  • Background
  • Area 3x the size of California
  • Capital Lima
  • Population 25.7MM
  • Terrain Western coastal plains, Andes mountains,
    tropical forests
  • Language Spanish
  • Quechua Aymara - Indians who live in Andean
    highlands and tropical lowlands near Amazon basin
  • Literacy 87.5
  • Teledensity
  • Religions Catholic 89
  • Government Constitutional Republic
  • Three branches Executive, Legislative, Judicial
  • Suffrage 18 yrs old
  • Military can NOT vote

49
Peru
  • Economy
  • 2001 GDP 54 B
  • Manufacturing 15 Trade 14, Agriculture 9
  • Per Capita GDP (2001) 2,071
  • Trade
  • Exports - 7.1 B
  • Gold, copper, fishmeal, textiles, zinc, lead,
    coffee, petroleum products
  • US 25 UK 13 L.A and Caribbean 18
  • Imports - 7.2 B
  • Machinery and parts, cereals, chemicals,
    petroleum products and oil, household appliances
    and automobiles
  • LA and Caribbean 31 US 30 Europe 22

50
Peru
  • Culture and Customs
  • Men and women shake hands both upon greeting and
    departure.
  • When first meeting and greeting your Peruvian
    contacts, offer a confident handshake.
  • Once a friendship has been established, men
    frequently greet each other with a hug, and women
    may kiss one another on the cheek. When you are
    greeted with more than a handshake, this is a
    sign that you have been accepted by these people.
  • Peruvians communicate in close proximity. When
    they stand nearby, do not back away, as you will
    offend them.
  • Your Peruvian associates may take your arm as you
    walk men often walk arm in arm with other men,
    as do women with other women.
  • Although haggling is appropriate in some Latin
    American countries such as Mexico, this is not so
    in Peru.
  • Note that when asking Peruvians for directions,
    they will sometimes give you an answer, even if
    they don't know for sure. The best way to confirm
    correct directions is to ask several people.
  • To signal "come here" hold your hand vertically
    and wave it back and forth with the palm facing
    out, or put your palm face down, and wave the
    fingers back and forth.
  • Crossing your legs by resting the ankle of one
    leg on the knee of the other is considered
    inappropriate. Instead, you may cross your legs
    at the knee.

51
Peru
  • Doing business in Peru
  • Since Peruvians value personal relationships, and
    relate more to an individual business associate
    than a corporation, a third party contact is
    necessary.
  • For example, when approaching a prospect in Peru,
    it is always better to establish the connection
    through a local mediator, or enchufado.
  • Ensure that you have your business card printed
    in Spanish, since making this effort will please
    your Peruvian contacts.
  • Your title will assist you in winning the respect
    of your Peruvian contacts. Consequently, be sure
    it is featured on your business cards and
    presentation materials.
  • Peruvian colleagues will appreciate it when your
    presentation material has been prepared in their
    native language.
  • Although you may meet many people within an
    organization, you will be able to determine the
    company's hierarchy based on titles--and the
    approximate ages--of the individuals you meet.
    When in doubt, observe who defers to whom doing
    so should enable you to identify the most senior
    person in the Peruvian organization.
  • Be tactful and diplomatic in Peru. If you are too
    direct, Peruvians will not value what you have to
    say.
  • Avoid switching your company's representatives
    during the negotiating process, since this may
    result in the Peruvian negotiation team's
    declaring a halt. As a general rule, Peruvians
    relate to the person they have come to know, not
    the organization.

52
Peru
  • Doing business in Peru
  • Peruvian business culture is open to most
    information, but attitudes are not changed
    easily. With the exception of the highly
    educated, information is filtered subjectively
    and associatively. Generally, personal
    involvement in problems and solutions is more
    important than following a particular rule or
    law.
  • Personal feelings towards a situation tend to be
    the basis for truth in this culture. Moreover,
    elitism and religion are ideologies that may
    influence perceptions of the truth. Empirical
    evidence and other facts are not as much of an
    influence.
  • Each person is responsible for his or her own
    decisions, but the best interests of the families
    or groups are dominating factors. A small upper
    class of the elite oligarchy controls the
    resources of the country. Personal relationships
    are more important than professional competence
    and experience.
  • Personal identity is based on the social system
    and the history of one's extended family.
  • At each level of society, the family is the
    cornerstone of relationships. Kinships define the
    key areas of trust and cooperation. At the
    highest levels of society, kinship and marriage
    reinforce and solidify political and economic
    alliances
  • Education is the key to social advancement in the
    Peruvian elitist system.
  • Machismo is quite strong.
  • Peruvian women have made great strides in the
    world of business. Nevertheless, Peruvian men
    still conduct the majority of their business
    dealings with other men. For this reason, women
    business travelers should dress and act with the
    greatest professionalism and be patient with the
    attitudes of machismo they may encounter. By
    doing so, they will be taken more seriously.

53
Peru
  • Business Dress
  • Formal, well-tailored suits are standard attire
    for business meetings. Casual clothes, especially
    "business casual" styles, are not considered
    appropriate attire in Peru.
  • Women should wear suits or dresses in a tailored
    style complemented by jewellery and make-up.
    Colored nail polish is also acceptable in
    Peruvian business culture.
  • Invitations to official parties normally require
    tuxedoes and cocktail dresses or evening gowns.
  • Foreigners should refrain from wearing native
    Indian clothing, even if they have the
    well-meaning intention of celebrating the local
    culture.

54
Peru
  • Conversations
  • Good Topics
  • asking about your Peruvian contact's family
  • discussing your own family
  • sights you've seen in Peru
  • restaurants in the particular area you are
    visiting
  • Topics to Avoid
  • inquiring about a person's ancestry (especially
    if it is Indian)
  • the Peruvian government
  • terrorists
  • politics in general
  • drugs
  • prices that have been paid for certain items

55
Latin American Resources
56
Resources
  • Moodys Latin America Ratings Lists, February
    2003
  • (http//www.moodys.com.br/pdf/LARL20Fevereiro202
    003.pdf)
  • Moodys provides current ratings for currency,
    debt, deposits, and overall financial strength of
    many companies in Latin America, grouped by
    country.
  • US Department of State, Global Travel Information
  • (http//www.state.gov/travel)
  • The U.S. Department of State Travel and Living
    Abroad website provides information for US
    citizens traveling or living abroad. The site
    includes Emergencies and Warnings, Passport and
    Visa information, and Health Issues for
    Travelers.
  • Executive Planet
  • (http//www.executiveplanet.com)
  • This site provides essential business culture
    guides for the global business traveler. Recent
    articles on international business culture and
    travel are also included.

57
Resources
  • Latin Investor
  • (http//www.latininvestor.com)
  • This site has thousands of reports from brokers
    and consulting firms on Latin American economies,
    law firms, companies, and industries.
  • US Department of State, Western Hemisphere
    Country Information
  • (http//www.state.gov/p/wha/ci)
  • The U.S. Department of State Western Hemisphere
    Country Information website provides political
    and statistical information for countries in the
    North America, Central America and South America.
    Regional topics and Ambassador biographies are
    also provided.
  • Latin Business Chronicle
  • (http//www.latinbusinesschronicle.com)
  • This site provides information about Latin
    Americas business, economy, and technology. Key
    data is available by country or business sector.
    Economic factors including GDP and inflation are
    provided, as well as many other useful resources.

58
Resources
  • Business News Americas
  • (http//www.bnamericas.com)
  • This site provides daily news relating to
    business in the Americas. Information is
    segmented by business sectors. The site is
    available in English, Spanish and Portuguese.
  • Latin American Network Information Center
  • (http//lanic.utexas.edu)
  • This site is an information service about Latin
    America, and is run from UT-Austin. Links to
    country, economic, governmental, recreation, and
    cultural information is provided, in additional
    to sustainable development and a variety of other
    useful topics.
  • Knowledge_at_Wharton
  • (http//knowledge.wharton.upen.edu)
  • This is a bi-weekly online resource providing
    current business insights, information, and
    research from a variety of sources. Information
    is available by topic. Search and Advanced
    Search features are also available to locate
    information by key terms.

59
Resources
  • Amarilas by Mercantil, Inc.
  • (http//www.amarillas.com)
  • This is a Business-to-Business (B2B) site for
    small and medium sized business in Latin America.
    Though the site is designed to facilitate B2B
    transactions, it is a good resource of company
    listings by country and market segment.
  • Export Michigan
  • (http//www.exportmichigan.com)
  • This site is intended to provide a variety of
    information to Michigans export community. The
    Trade Guide link provides access to a variety
    of international business guides, and links to
    both public and private sources of additional
    information.
  • Library of Congress, Federal Research Division
    Country Studies
  • (http//lcweb2.loc.gov/frd/cs/cshome.html)
  • The US Library of Congress provides online
    versions of books which were previously published
    in hard copy by the Federal Research Division,
    and sponsored by the US Army. 102 countries and
    regions are covered, including South and Central
    America.

60
Resources
  • Eastern Michigan University International Launch
    Zone
  • (http//www.emich.edu/ict_usa/INTERNATIONAL.htm)
  • This International Launch Zone , provided by
    the Eastern Michigan University, is an index to
    country specific sites prepared by industry
    specialists stationed at US embassies around the
    world.
  • Latin America Data Base
  • (http//www.ladb.unm.edu)
  • LADB is a database of news and educational
    information on Latin America. This online news
    service publishes in-depth coverage of Latin
    American affairs and maintains and online
    searchable database of over 24,000 articles
    related to the region.
  • Bloomberg Latin America
  • (http//www.bloomberg.com/sa/sahome.html)
  • Bloomberg provides news and sports information,
    as well as political, economic, and financial
    data for Latin America. Current financial
    specifics pertaining to bond and equity markets
    are updated regularly.

61
Additional Resources
  • Search Engines
  • Google (http//www.google.com)
  • Yahoo! (http//www.yahoo.com)
  • UT Library Databases (http//www.lib.utexas.edu/i
    ndexes/s-business.html)
  • Business Source Premier
  • Academic Universe by LexisNexis
  • Dow Jones Interactive
  • World Markets Research Centre
  • World News Connection
About PowerShow.com