Brazil is the third emerging economy, after China and India, and the largest market in Latin America (about 40% of total). Here are some keys to negotiating with Brazilian companies:
- In the initial interviews Brazilians do not give many details and may even give confusing information; they expect the other party to do the same until some degree of trust has been achieved. The negotiation process is slow.
- You must not behave arrogantly or with an air of superiority, as Brazilians take offence to such attitudes.
- You should not pressurise since they feel uncomfortable with any hint of conflict.
- Brazilians are not very keen on haggling either. Generally, concessions are made at the end of the negotiation.
- It is essential to discuss the method of payment. You should cover all the business risks before agreeing to deliver the product.
- Agreements are negotiated generally, rather than point by point or in order.
- The Brazilian business culture is individualist and hierarchical. Decisions are usually taken by one person: the senior manager.
- To gain access to the Brazilian market you should work with a local contact –despachante in Portuguese– who will resolve bureaucratic problems and inform you of the company’s solvency.
- Contracts are only written in English or another foreign language and in a currency other than the real if the object of the contract is overseas. If the place of the contract is Brazil, the government demands the contract be written in Portuguese and to refer to the local currency, the real.
To obtain the complete Negotiation and Business Etiquette Guide in Brazil, click here.