Doing Business in Central and South Latin America

From the Spanish conquest, the wars ofexecutives should sit facing each other. In general, Latin
independence, the aftermath of independence, thebusiness executives prefer to be the ones "in control",
search for political stability, the acute disparities ofyou should try to avoid monopolising conversations or
wealth, the periodic armed revolts by dissidents, theputting pressure of any kind on your colleagues. Be
coup d'etat, military dictatorships, all have been asensitive to the fact that Latins tend to stand and sit
regular feature in Central and South America. Also theextremely close to others. The best policy is to
relationships with the United States and Europe, haverespect this practice and accept that it is the cultural
contributed to shaping the "psyche" and culture of thenorm. Moreover, attempting to move away will be
"national" personality in each country.perceived only as a cold rejection.
Clearly it would difficult to suggest that there is aA manager's status is attributed on grounds of family,
standard "Latin American Business Cultural Model".age, educational and professional qualifications. They
Latin American business executives tend to betend to have less specialisation than European or USA
extrovert, impatient, talkative, and inquisitive. But ofmanagers. Latins follow a top-down decision making
course, in Central America, Venezuela, Colombia, Brazilprocess, where employees follow a trusting
and Argentina, they are more extrovert than in Chile,subservience to their superior as task orientation is
Bolivia or Peru.dictated from above.
When preparing your trip, remember that manyOpinions of experienced middle-mangers and technical
countries require a business visa to conduct businessstaff do not always carry the weight that they would
transactions. Avoid Christmas and the holiday seasondo in the UK, but as meritocracy slowly grows, their
as everything slows down. Check the climateinfluence grows too. Latin managers are paternalistic
conditions particularly in countries such as Peru andand emotionally involved. Managers or heads of
Bolivia; altitude, rain, heat, etc. may affect your health.departments tend to concern themselves with the
Documents such as letters, promotional literature, andpersonal and private problems of their staff.
presentation materials should be translated intoBusiness and corporate social life follow "old world"
Spanish. If you receive a reply from a Latin company informalities; etiquette, manners and physical presence
English, however, you may begin using English inare measure of breeding and status symbols. It's
correspondence.considered very important to maintain good posture at
Prior appointments are always preferred, preferably atall times, even in more informal situations. A firm,
least one week in advance, making sure you alwaysassured, handshake is the customary greeting on all
check the appointment on the day of the meeting.occasions. During the handshake, state your full name;
Punctuality is expected and you must take intoyour Latin counterpart will then reciprocate by doing
account the traffic congestion-especially in most of thethe same. You will have to speak not only at a closer
Capital cities, such as Mexico City, Sao Paulo, Santiagodistance, but also maintain eye contact as an
de Chile, Buenos Aires, Lima, Caracas etc- this can beassurance of your genuine interest.
difficult, and you must plan ahead to ensure you haveLocal business people tend to be very
plenty of time to get to your destination.status-conscious and will often be impressed by these
Latin Americans, tend to be people oriented, theydisplays. First impression is everlasting in the mind of a
argue emotionally, and instead of giving strict orders,Latin. In general the Latin executives are highly
they prefer to do things by seeking favours. In contrastconservative and traditional in their dress code. Men
with the "individualist" Anglo-Saxon culture, thewear dark, conservative suits for all formal occasions.
"collective" is above everything, as a resultFor the Latin, pleasure is before business, and they use
interpersonal skills such as the ability to "fit in" andentertainment as a way of building a personal
maintain cordial relations with the group, are oftenrelationship with his/her potential business partner. Much
considered more important than professionalleisure time is spent socialising with family, friends and
competence and experience.colleagues, mostly at weekends. Business dinners, in
It is in this context that the "Family" has a broaderparticular, are usually purely social occasions, and as
"collective" connotation as it embraces blood relations,such you should refrain from discussing work-related
distant family, friends, or even work colleagues. In factmatters unless your Latin contact brings up the
do not be surprised to see Latin business executivessubject. Ensure that you write a thank-you note
intermixing their work environment with theirfollowing any social gathering where you were a
"social-family life". In this culture, nepotism is easilyguest. Thank-you letters can be very helpful in
accepted as common practice; family members andsolidifying rapport.
relatives are preferred when recruiting staff. To thatWomen, legally enjoy all the same rights as men in
extent the individual member must take fullmost of Central and South American countries.
responsibility for his or her decisions and how theyDepending on the degree of economic growth,
affect the group or family structure.urbanization, industrialization, education, and expanded
In recent times there have been an interesting dualopportunities in their respective country, women have
development in the business culture, on the one hand,better or worse positions in society. Practically the
the older generation continues doing business by oftenrepresentation of women in the private sector's upper
placing a greater emphasis on "trust" and "loyalty" byand middle management is growing slowly, but remains
getting to know you personally, as for them, completingfairly small. One can rarely mention a name, which can
a human transaction is the best way they can investbe easily identified with a women business leader.
their time. On the opposite side, the younger generation,Latin women tend to be meticulous dressers who
especially those educated in the USA and Europe, areclosely follow European fashion. Female visitors are
chiefly preoccupied with business concerns.advised to bring conservative, stylish business clothes
In family-owned businesses, senior family membersof the highest quality, including a cocktail dress. Often,
usually make the final decision. In most otherwomen greet each other by quickly touching cheek to
organizations, however, senior management makescheek and kissing the air.
decisions. Moreover, individuals with professionalFor middle-class woman who want to combine job
experience, who have a special understanding of theand family careers support provided by the extended
implications of the proposal, will often have input intofamily and the availability of maids is a pre-requisite.
the decision-making processLatin businesswomen are going through the same
Times, like truth are relative concepts. Latins are notdilemmas as business women in more other countries
very interested in schedules or punctuality - they- in being mother, lover, wife, professional, and
pretend to observe them if being asked or insisted.entrepreneur!
This creates conflict and irritation with Anglo-SaxonWhen doing business in Latin America, your always
cultures Why they don't arrive in time? Why they don'tmust make all the necessary preparations to leave a
work to deadline? Why they don't follow a plan? Inlasting impression about; your company, your products,
response, Latin people think they get more done theiryourself, your value systems and your attitude to
way!business. In the final instance Latin American business
The pace of negotiations is slower in Latin Americapeople are asking themselves; Can I trust this person
than in Europe, as is customary, some preliminaryto do business with? Is our relationship sufficiently
conversation is considered necessary before eachsolid?
meeting, since it allows the participants to becomeIf the answer is YES , and trust has been
personally acquainted. The best policy is to wait foracknowledge by both parties, then the business flows
your Latin counterparts to initiate any "small talk" andaccordingly, and the chances of securing contracts
follow their lead in establishing rapport.and agreements are much greater.
Meeting formalities must be followed; the two senior