Utfordringer ved forretningsutvikling i Brasil Terje Staalstr

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Utfordringer ved forretningsutvikling i
BrasilTerje StaalstrømPresident
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OBJECTIVE of BNCC Strengthen Commercial
Relations between Brazil and Norway
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Business Seminars
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Profiling BNCC and Brazil
NORSHIPPING 2011
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Active participation in the official Reference
Group for development of Brazil Strategy
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Challenges and Responsibilities for Norwegian
Business in Brazil Numerous! And you dont
always know before its too late!
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A succesful business requires facts.
Not dreams.
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• We need Facts about
• Geography
• Economy
• Social structure
• Political system
• Legal systems
• Historical background
• Cultural dimesions of doing business
• Population and competencies
• Language
• etc
• As well as
• Market and competitor info for products and
  services

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ITS HUGE !
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7th world economy in 2011 and 5th before the
Olympic Games in 2016
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In spite of oil riches Brazil still has some
way to go
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Brazil 2010 - Population 198 million -
134 million voters. Worlds 4th largest democracy
- 88 literacy - 26 below poverty line
- GDP growth 7,5 (5- 6 average next five
years) - Unemployment 5.3 - Inflation
5,9 - Foreign reserves US 299 billion
- FDI US 48,5 billion - Exports
increase 32 - Exchange rate 1 Real NOK
3,50
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Norway is now the main destination for Brazilian
exports to the Nordic Countries (2007-2010)
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Brazilian culture is a dynamic product of the
various population groups that make up the
demography of the country - mainly Europeans,
indigenous peoples and Africans
Business negotiation fosters the confrontation
between different values, visions and
perspectives. These differences are conditioned
by the culture of the parties Norwegian and
Brazilian. So understanding the cultural
differences is paramount
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Culture is more often a source of conflict than
of synergy. Cultural differences are a nuisance
at best and often a disaster. Prof. Geert
Hofstede, Emeritus Professor, Maastricht
University. Power Distance Index (PDI) Degree
of equality, or inequality, between people High
Power Distance indicates inequalities of power
and wealth within society. Individualism
(IDV) Degree of individual or collective
achievement and interpersonal relationships. A
High Individualism ranking indicates that
individuality and individual rights are paramount
within the society Masculinity (MAS) Degree of
traditional masculine work role model . A High
Masculinity ranking indicates the country has a
high degree of gender differentiation Uncertaint
y Avoidance Index (UAI) Degree of tolerance for
uncertainty and ambiguity. A High Uncertainty
Avoidance ranking indicates the country has a low
tolerance for uncertainty and ambiguity. This
creates a rule-oriented society that institutes
laws, rules, regulations, and controls to reduce
uncertainty. Long-Term Orientation (LTO)
Degree of long-term devotion to traditional,
forward thinking values. High Long-Term
Orientation ranking indicates the country values
long-term commitments and tradition.
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Just a reminder of cultural differences
BRAZIL
NORWAY
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Norway Brazil
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• Examples on how Brazilians may be expected to act
  during negotiations
• 1. Nature of Negotiating Activity
• 1.1. Basic conception of the negotiation
  Competition (30 ) Collaboration (70 )
• 1.2. Negotiating attitude Bargaining (50)
  Integration (50)
• 1.3. Objective of the negotiation Contract (47)
  Relationship (54 )
• 1.4. Strategy of the negotiation Planned (51)
  Improvised (49 )
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• 2. The Role of the Individual
• 2.1. Responsibility I Individual (33)
  Group (67 )
• 2.2. Decision-making Leader (33)
  Consensus (67)
• 5. Trust
• 5.1. Interpersonal trust Trust (71 )
  Distrust (29 )
• 5.2. The basis for trust Reputation (74 ) I
  ntuition (26 )
• Source Eugenio Carvalhal -2007 Cultural
  dimensions of negotiations

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Bureaucrazy

• Brazils history is a history of bureacracy
• Low risk tolerance leads to rules and regulations
• Demand for certificates,permits, credentials and
  other official documents is a hotbed for
  bureacrats (and corruption)
• World Bank 2011 ranks Brazil as 126 of 181 in
  efficiency of setting up business (5-6 months)
• Despachantes and Jeitos

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Corruption

• Transparency International ranks Brazil at
  corruption level with other BRICs and Italy
• Norwegian companies - Norwegian and Brazilian
  laws. Severe Public officials.
• Increasing with distance from major cities
• Public bids in Petrobras, but less transparency
  with subcontractors.
• Political problem, but Dilma adressing issue.
• Growing middleclass demands political
  accountability

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• Brazil is the land of taxes !
• More than 50 different taxes and social
  contributions federal, state and municipal
  levels
• Complex regulatory, tax and legal issues
• Difficult to structure a transaction
• Nature of tax legislation frequent changes in
  tax laws
• High level of penalties and interest when non-
  compliance
• Tax disputes are common and can take more than 10
  years to reach a final decision
• This complex environment makes the tax area as
  one of the key business issue for foreign
  companies in Brazil
• YOU NEED A GOOD TAX LAWYER AND
• A GOOD TAX ACCOUNTANT

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But dont despair! Everything is going to be
all right in the end, and if everything is not
yet all right, thats only because we havent
reached the end! (A popular saying)
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Informative Brochures
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Use the assistance available to you!

• Foreign service (Norway and Brazil)
• Innovation Norway
• Intsok
• APEX
• Chambers of Commerce (Oslo, Rio,
  São Paulo)
• Consultants on establishment process
• Local legal firms specializing on Norway

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Takk for oppmerksomheten! Obrigado!

• BNCC website www.brazilchamber.no