utfordringer ved forretningsutvikling i brasil terje staalstrøm president
TRANSCRIPT
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Utfordringer ved forretningsutvikling i Brasil
Terje StaalstrømPresident
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OBJECTIVE of BNCC:Strengthen Commercial Relations
between Brazil and Norway
NTNU 26.10.2011
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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 don’t always know before it’s 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 servicesNTNU 26.10.2011
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9
IT’S HUGE !
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7th world economy in 2011 and 5th before the Olympic Games in
2016
Rank Country US$ M
1 United States 14,624,1842 China 5,745,1333 Japan 5,390,8974 Germany 3,305,8985 France 2,555,439
6 United Kingdom 2,258,5657 Italy 2,036,6878 Brazil 2,023,528
Country ranking GDP (nominal) . Source: IMF (2010)
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In spite of oil riches – Brazil still has some way to go
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Brazil 2010 Brazil 2010
- Population 198 million- 134 million voters. World’s 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)
0
100
200
300
400
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Norway S weden Finland Denmark
US
$ M
illi
on 2007
2008
2009
2010
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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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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
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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
•Uncertainty 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
%)• • 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”NTNU 26.10.2011
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Bureaucrazy• Brazil’s 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
accountabilityNTNU 26.10.2011
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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 – don’t despair!
”Everything is going to be all right in the end,
and if everything is not yet all right,
that’s only because we haven’t 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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BNCC website: www.brazilchamber.noNTNU 26.10.2011
Takk for oppmerksomh
eten!Obrigado!