Topic 5 - Culture and business in Latin America

Question 1

Describe business culture in Venezuela

Answer 1

• Friendship is very important
• Margins and profits tend to be higher than in other countries because of the country risk and culture
• High dependence on oil exports
• Increasing government intervention on business activity
• Legal uncertainty and corruption

Question 2

Describe business culture in Argentina

Answer 2

• Economic crisis, political instability with huge external debt problems
• Optimistic and talkative personalities
• Informal discussions lead to formal negotiations
• Described as ‘Spanish that behave as Italians and want to be British’
• Devote time to personal relationships
• Top-down hierarchical approach with tough negotiators

Question 3

Describe business culture in Brazil

Answer 3

• The largest market in Latin America
• High level of professionalism
• Prefer to build relations before doing business
• Slow negotiating process with trust being hard to earn but a necessary part
• Avoid pressure and confrontations at all costs
• Individualistic and hierarchical

Question 4

Describe business culture in Chile

Answer 4

• Least risky economy in Latin America
• High levels of external openness
• Intermediaries are very important
• Professionality and personal relationships are very important
• Decision making is hierarchical
• Honesty and integrity are highly valued
• Slow paced negotiations