Five Ways Brazilians do Business Differently than Americans

By Jonathan Barret, International Business Contributor

There are a myriad of differences between how Brazilians and Americans do Business. One should not judge
the differences in business practices as right or wrong. Rather, there are things that are the norm in one country
that simply won't work in the other. In the end, it’s a matter of understanding the differences and being mindful
of how they can affect the relationship. Here are my top five:

1. Dress Code in Brazil is an Indicator of Status and Success: In Brazil you can tell if a person is at a
managerial level by how he dresses. The higher the position the more dressed up the person will be. For men
this means wearing a suit with a vest if at an executive level. A lower level executive may wear a suit and a
manager will wear a shirt and tie. Non-managers may adopt the business casual look but never jeans. Women
may wear tailored suits or dresses. Due to the tropical climate it may be common to see more cleavage than
one would see in America. The key for men and women is to wear clothes made out of good material and many
times made by famous designers that denote status.

In America, most companies have adopted the business casual look which may mean a business shirt with
khaki pants but no tie or jacket. If it's a newer industry such as Tech you may even see people wearing jeans.
In more traditional industries, such as finance, dress may be more formal. However, since brand name clothing
is relatively cheap in the U.S. and accessible to anyone, it is not a symbol of status; a secretary can afford to
dress just as well as the CEO.

2. Brazilians pay Attention to Etiquette and Protocol; Americans are More Laid Back: Etiquette in
Brazil is extremely important and denotes status and class. A person is expected to know how to eat properly
and carry himself in a way that shows class. In business, this becomes even more important since a lot of the
interactions are around a dinner table. The staff at restaurants and at executives’ houses are trained to watch
guests’ signals so they know when to serve, remove, or bring a new dish. If working with government officials,
etiquette and protocol need to be studied and followed. This is definitely a more formal culture and you will be
judged by how you behave.

In America, things are much less formal. Usually, business lunches and dinners are more casual. The
expectation to behave a certain way is not as prevalent as in Brazil. At the highest level of the executive ranks,
things can get more formal but there are no expectations to behave a certain way. Some business interactions
will demand a French style service, but those are not very common.

3. Brazilians do Business with People; Americans with Companies: If you want to do business with
Brazilians you need to devote time to know the person you are dealing with on a more personal level.
Brazilians need to know and trust their business counterparts. If there is no connection or affinity the deal may
be off. As a new business partnership develops, a lot of time will be spent dining and having coffee. Americans
on the other hand, develop trust less by getting to know someone's personal life or family name and more by
meritorious behavior; e.g. punctuality, efficiency, and the company's reputation. Americans often separate
business from personal and look at the company's reputation for effectiveness to judge whether to trust.

When these two different cultures have to work together it can be a challenge. Americans may not understand
why it takes Brazilians so long to do something and why sometimes they won’t even talk about business in a
business meeting. Brazilians on the other hand, are sometimes offended by Americans’ cold demeanor and lack
of openness. The key is to understand and respect each side and try to find common ground.
4. Corporate Brazil is more Hierarchical than the U.S. Structure: Brazilians follow and respect hierarchy
at work. Even though people work together and have closer relationships, employees don’t usually question
their managers. There is a level of separation that is a part of the culture. Higher level executives don’t usually
consort with lower level employees and it’s still very common for employees to address executives as Mr. and
Mrs. Higher level executives can also be called “doutor” or doctor even though they are not real doctors or don’t
have a PhD.

In America, there’s typically an “open-door policy” where higher executives are available to meet with most
workers and the environment tends to be less hierarchical. In some companies employees don’t even have titles;
the ultimate goal is to get the work done and titles can get in the way. Some traditional companies may have a
more formal structure but not to the extent you see in Brazil.

5. The Concept of Time differs Dramatically from one Country to the Other: The “time is money”
concept does not apply in Brazil. Brazilians are very laid back when it comes to time. Meetings can start late
and run late and business lunches or dinners may be 2-3 hours long. Often there aren't even any clocks in the
meeting rooms. Americans on the other hand, follow their schedules as closely as possible; a meeting starts
with agenda items and all of them are covered methodically in order. In Brazil, there might be an agenda but it
may not be followed closely, as people often lose focus and get sidetracked discussing other matters.

In the U.S. punctuality is a sign of competence and respect for others. Business can be jeopardized if schedules
and deadlines are not respected. Clocks are present in most offices and meeting rooms to guarantee that
everyone is meticulous about time. In many businesses, clocks are also present in hallways and eating areas.

In conclusion, cultural understanding of both countries will benefit business relations and facilitate cooperation
between partners. Seeing things from the other's perspective is key. What cultural differences are the most
challenging for you?