As the largest economy in South America, the Federative Republic of Brazil presents numerous opportunities for businesses looking to expand into this market.
Brazil is one of the largest countries in the world, both in terms of land size and population. With such a varied landscape and culture within one country, it makes for an interesting place to do business.
Industry and business in Brazil
Brazil has been slowly but steadily growing its economy over the past few years, averaging a resilient average of 3% per year. Though much of the focus has been on their agricultural sector, other industries also offer prospects to those seeking business connections here.
One of the most lucrative industries in Brazil by far is mining. Brazil is the world's second-largest exporter of iron ore, and is also a major world producer for other important metals such as copper, manganese, and tin.
Brazil also has an extremely lucrative manufacturing sector, accounting for approximately 12.38% of GDP in 2024. Regardless of the industry you operate in, there will be plenty of opportunities to explore here.
Brazilians in the boardroom
As always, we are going to refer to the Lewis model when discussing how cultures might act during the negotiation process. In the case of Brazil, its citizens are textbook multi-active. They are commonly observed as being talkative, warm people who come across as animated and emotional during conversation. Professionals may be uncomfortable with silence and, therefore, will try to fill it.
Relationships and conversations are incredibly important to them. Maintaining these relationships will be crucial in establishing long-running partnerships without conflict. You may find that schedules and sticking rigidly to contracts will not be as high a priority to them as with other cultures you may engage with. Interruptions during discussions with Brazilian business partners may be more frequent than you would like, but don't take it as an insult. They don't mean to be rude; there might just be several conversations going on at once!
Key tips for negotiating with Brazilians
So, how do you manage negotiations when you head into business with Brazilians?
1. Get the language right
Spanish may be the language of South America, but it is not the language of Brazil. Brazilians speak Portuguese, and this is a variant of the Portuguese spoken in Portugal. They are mutually intelligible, but there are some key differences in grammar and word choice in their spoken dialects.
The language of business in Brazil is English, so you don't need to be fluent in Portuguese to successfully operate there. However, as with moving into any culture where English is not a native language, it is polite to have a few key phrases you can say to break the ice and begin to build a relationship.
2. Keep your team consistent
These negotiations are about building personal relationships as much as they are about achieving the best possible deal for your company. Part of this will be establishing strong ties with your counterparts. For this reason, you need to ensure that you consistently send the same team.
Negotiations might take several rounds of meetings. Sending different faces may cause unnecessary setbacks. By using the same personnel each time, they have the chance to build real, working relationships as part of a much bigger negotiation strategy.
3. Don't get right down to business
One of the most important aspects of Brazilian business culture is a slow lead-up to the actual negotiations. They view the need to get down to business straightaway, as can often be seen with Americans, as being crass. Instead, they will want to engage in some small talk and general chat before things begin.
Though this might be one of the most obvious cultural differences between your home nation and your Brazilian counterparts, this is something that can't be skipped. Whether you are hosting the meeting at home or heading out to meet your partners in their offices, ensure there is space for you to relax into the meeting.
4. Expect a strict hierarchy
Though a Brazilian negotiation may seem carefree, there is a stricter hierarchy behind the scenes than you might expect. The final decision has to come down from the most senior executive; only their signature and approval will seal the deal.
You may not even be negotiating with this senior leader. Depending on the scope of the project and how big the company is, they might be off somewhere else just waiting for a report to land on their desk. However, the deal will not progress without their blessing.
5. Have people on the ground in Brazil
Ideally, you should have local experts on the ground in Brazil to help you navigate some of the finer areas of business culture. A local accountant, lawyer, and notary are all important members of the team you should look to hire, rather than flying your own in from your home base.
Having this insider expert knowledge can help you navigate the complicated world of Brazilian bureaucracy and focus your attention on driving value in negotiation. Brazilians may not look kindly upon you introducing an expert from your country who actually does not understand or appreciate how things move forward in theirs.
Land your negotiations in Brazil with Scotwork's training
Achieving the right outcomes is possible when you have the right foundation of skills to fall back on. Even with the most disjointed of clashing cultures, a little respect and a good understanding of negotiation skills can help you keep forward momentum during discussions.
Remember, Brazilians value the creation of a relationship alongside terms and conditions. Don't head into this relationship-driven culture unprepared, as it may unintentionally damage your deals. Focus on nurturing your links, and you can build strong partnerships with Brazil and wider South America that can serve you both.
Ready to further your understanding of negotiation? Scotwork's experts can help you to identify and address your strengths and weaknesses, building on what you already know so you can approach every bargaining table with confidence. Get in touch with us today and open a discussion on how we can best help you.
