International Economic Cultural Perspectives
Culture is the attitudes and actions that are distinctive of a particular social group. It incorporates beliefs, techniques, rules, and foundations that describe human populace. Notably, contribution in global business undertakings helps countries take benefit of state proficiency in commerce to distribute goods and services into the intercontinental marketplace.
It also exposes buyers to new standards of living and concepts. Over time, these disclosures affect national cultures comprising their political and economic institutions. Likewise, it impacts activities, approaches, and routines of a society.
When people become acquainted with cultural differences and desire to look for them, then cultural consciousness takes place. At this stage, the entrepreneurs are less likely to obligate social or cultural errors. Cultural acquaintance is an extension lead of cultural responsiveness. (Adekola & Sergi, 2012)
Industrialists at this level know how to offer suitable greetings and what manners to anticipate in foreign markets. They are in a position to perceive, catalog, and evaluate external behaviors. Cultural understanding transpires when businesspeople know what behaviors are proper and why those actions are accurate to the culture (Meyer, 2014).
Business Culture in Brazil
Cultural legacy of Brazil has been impacted by a range of diverse populations and cultures. It is vital to note that Brazilians adore meeting people and spending time with each other. In most cases, it is done during lunch and coffee breaks. Brazilians are mindful of fashion and ruminate over their dressing.
There is a vertical grading in Brazilian corporations where administrators make most of the decisions. Men govern most of business positions as opposed to women.
In Brazilian society and business culture, dissimilarities in class are very predominant. Economic status regulates peoples societal level. There are regulations contrary to discrimination, and understating of most class differences in business.
Work Relationships in Brazil
The Brazilian business culture accents close individual affiliations and building reliance. In return, it provides support for a trade to succeed.
In Brazil, family relations are cherished, and, in most cases, household members work in the same company. Consequently, working with people that you know strengthens the dependence.
Business Practices in Brazil
The most common form of greeting between co-workers is a handclasp. In more unceremonious circumstances, women have a tendency to greet each other with a peck on either one cheek while men may momentarily hug. Once you meet somebody for the first time, it is courteous to say My pleasure.
Ordinarily, Brazilians employ a distributor to assist in business transactions. A middleman helps the proprietor navigate Brazilian government system at a nominal fee.
The local populations who are conducting business in Brazil have incorporated these elements by the following means. They do not disapprove their Brazilian corresponding persons in public. In case one desires to correct the other party for something deleterious, they do so in private. The drive of doing so is to guarantee that they do not lose reverence in front of others.
Also, they do not hurry commercial transactions with their fellow Brazilians. They usually take much time getting to discern their Brazilian business equivalents before any trade takes place.
Differences between How Culture and Business Operate in the United States and Brazil
There are a number of differences between how culture and business operate in the United States and Brazil. For instance, Brazilians observe and respect hierarchy at work. The workforce does not have the right to interrogate their directors. As part of the culture, there is a certain separation between the employees and employers even if they function in the same association. Higher level managers denoted as executives do not merge effortlessly with their personnel.
In the United States, the work setting tends to be less classified. Employees lack titles in some corporations because the vital goal is to get work done. The exceedingly hierarchical enterprises value chain of command but not to the level experienced in Brazil.
In Brazil group work involves everyone, while in America the work is divided. Brazilians believe that work should be done collectively from the start to the end. Everyone should take part in the entire process, and no one has the authority to make decisions without checking with the group. The sense of solidarity is predominant, and the group determines the result. In the United States, the group work is usually divided amongst the team members. The latter split into particular groups where they perform the assigned tasks and determine the results. Each group is responsible for their outcomes.
The Americans live to work while the Brazilians work to live. In Brazil people believe in working hard while considering highly and treasuring their families. According to them, life outside of work comes first. They appreciate their work and take vacations whenever possible. The Brazilians prefer working to pay their bills and enjoy life. In case they do not find pleasure and enjoyment in their work, they quit and find something else.
Americans take their work solemnly. Sometimes, they work 10 hours a day. In the United States the working population rarely takes vacations or their paid time during the whole year. Unfortunately, work defines the Americans. If the two cultures work together, Americans may take it as if Brazilians are not serious about their work. On the other hand, Brazilians will feel that Americans do not respect their personal time.
Brazilians pay much attention to etiquette and protocol, whereas Americans are more casual and laid back. In Brazil people are judged as per their behavior despite the kind of work that they perform. They value etiquette because it denotes status and class. Despite the level, a person is expected to behave properly in a way that shows the type.
In the United States people and things tend to be much less formal. The business lunches and dinners are casual. Americans believe that they ought not to behave in a certain way. There is no regard for formalities as it is in Brazil.
Americans do business with companies, while Brazilians do business with people. In Brazil people devote their time to understand the kind of a person they are dealing with. Trust is highly emphasized amongst the company counterparts. If a person does not have adequate knowledge about the business partner, the deal comes to a stop.
On the other hand, Americans prefer not to develop personal connections. According to them, focus should be directed to work but not relationships. They always separate business from personal relationships.
Challenges that the United States Businesses May Face When They Conduct Business in Brazil
Brazil Is a Developing Nation
Brazil is a developing nation that translates that they are under development in several arrears of the economy. As compared to the United States, the consumer base sphere of investment and regulatory environment are underdeveloped. It will be problematic for American businesses to adhere to such conditions as they are likely to decrease their profits.
Corruption in Brazil
Corruption is a vice for development. Brazil is experiencing significant levels of corruption among its senior business people and politicians. Even though the rate of crime is decreasing, the presence of corruption in Brazil has an adverse impact on prospective sales. Crime is likely to lead to the fall of companies.
Currency Status in Brazil
Doing business in Brazil will be expensive because the Brazilian economic boom has pushed prices up in the country. Commodities have increased in price because the currency has moved closer to parity. Moreover, investment will be challenging because the countrys stock market got stuck in a rut.
Taxes in Brazil
The taxation authorities in Brazil are levying large totals of taxes on businesses. Despite the efforts of the innate firms to fight random charges, nothing has changed. High taxation obstructs the firms from receiving investments and making enormous profits. It also restricts employees determination to work hard because their remunerations will be extremely taxed.
Notably, high and untimely taxation depresses importation and exportation hence meddling with trade expansion. As a result, the United States businesses will experience financial discomfort if they conduct business in Brazil.
Technology in Brazil
Technology in Brazil is unsatisfactory and unreliable. Lack of sustaining technology hampers progress and deters investment from Brazil. At the moment, industries are depending on the novel know-how in vast areas of operation such as exporting and importing products, following up business transactions, and estimating financial position of enterprises. As a result, Brazil will be a challenging place to conduct business. The multinational and developed business entities will withdraw from investing in such a state.
Export and Import Barriers
In Brazil most of the imported goods are held in the port for some time while the correct procedures take place. At the same time, the regular cost per container is rather steep. Similarly, the exports go through the same process before leaving the Brazilian territory.
It will be challenging for the United States businesses due to the continued delays that affect the contractual due dates. Some clients may even lose trust in companies if the expected products are not delivered in time.
Infrastructure in Brazil
The Brazilian government lacks considerable infrastructural developments. It is important for the country to improve infrastructure, auction road, and railway and airport concessions. In addition, the state should cut financial transaction tax on several major projects. Insufficient infrastructure makes it difficult to transport products from one place to another. It also affects negatively the transport business.
Preference for Local Companies in Brazil
Brazil has a varied and wide-ranging economy that draws many corporations into forming business with local enterprises. As a result, the local businesses are given partiality compared to other enterprises. Correspondingly, customers prefer acquiring products from local businesses placing foreign firms at a disadvantage.
Bureaucracy in Brazil
According to Katsioloudes (2006), The transformation of the regulations for founding and organizing business in Brazil has not changed at the percentage with which the budget has developed. It hence presents countless hurdles to out of the country companies.
There are long dealings that are prerequisite when handling construction licenses, cataloging property, and reimbursing levies. These procedures take a long time before establishing. It discourages the potential businesses from coming into existence.
Before the business representatives of the United States decide to start to commerce, they ought to contemplate the stated challenges. Despite these challenges, Brazil presents a viable and productive import/export opportunity for organizations if the government remedies the hindering factors.
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