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INTRODUCTION .

‡ THE CURRENT PRESIDENT IS ON HIS 2nd TERM. ‡ THE PRESIDENT IS ELECTED BY POPULAR VOTES FOR 5 YEAR TERM ELECTION LAST HELD WAS ON 23 JAN 2011.‡ CURRENT CHIEF OF STATE IS President Anibal CAVACO SILVA SINCE 9 MARCH 2006. . ‡ CURRENT HEAD OF THE STATE IS Prime Minister Jose SOCRATES Carvalho Pinto de Sousa SINCE 13 MARCH 2005. ‡ THERE IS A SUPREME COURT WHCIH HANDLES CASES AND ALL THE JUDGES ARE APPOINTED FOR LIFE.

‡ LEGAL SYSTEM IS BASED ON CIVIL LAW SYSTEM . ± ALLOWED FOR PRIVITIZATION OF NATIONAL FIRMS AND GOVT OWNED COMMUNICATION MEDIA. ± THE REVISIONS PLACED THE MILITARY UNDER STRICT CIVILION RULE. ‡ PORTUGAL GOT THEIR FREEDOM AS ON 10 OCT 1910. ‡ PORTUGAL CONSTITUTION WAS ADOPTED AS ON 2 APRIL 1976.POLITICAL ENVIRONMENT ‡ PORTUGAL HAS A PARLIAMENTARY DEMOCRACY TYPE OF GOVERNMENT. ± TRIMMED THE POWERS OF THE PRESIDENT. ‡ PORTUGAL HAS 18 DISTRICTS AND 2 AUTONOMOUS REGIONS UNDER THEIR ADMINISTRATION.

Portugal. and both were badly affected by the downturn with revenues falling 15% in 2009 . ‡ CAUSE: Initially currency devaluation helped finance the borrowing.[2] including European Union members Greece. Greece was initially able to borrow due to the lower interest rates government bonds could command. most importantly Germany. Ireland. This led to a crisis of confidence as well as the widening of bond yield spreads and risk insurance on credit default swaps between these countries and other EU members. The global financial crisis that began in 2008 had a particularly large effect on Greece. Spain. the 2010 Euro Crisis developed concerning some European states. Two of the country's largest industries are tourism and shipping. and Belgium. fears of a sovereign debt crisis.ECONOMIC ENVIRONMENT ‡ CRISIS(2010) ± In early 2010. After the introduction of the euro in Jan 2001.

‡ A report published in January 2011 by the Diário de Notícias. a leading Portuguese newspaper. inflating top management and head officers's bonuses and wages. along with the help of risky credit. demonstrated that in the period between the Carnation Revolution in 1974 and 2010. persistent and lasting recruitment policy that boosts the number of redundant public servants. allowing considerable slippage in state-managed public works. and mismanaged European structural and cohesion funds across almost four decades. and later was incapable of doing anything to remediate the situation when the country was on the verge of bankruptcy by 2011. . public debt creation. the democratic Portuguese Republic governments have encouraged over expenditure and investment bubbles through unclear public-private partnerships. that the Prime Minister Sócrates's cabinet was not able to forecast or prevent at first hand in 2005. funding numerous ineffective and unnecessary external counsultancy and advising committees and firms.

4 IS .S. U.‡ CURRE L E r = . I R( ll rs ROX) = ( ROX) .

Economic growth had been above the EU average for much of the 1990s.30 percent in the fourth quarter of 2010 over the previous quarter. ‡ From 1988 until 2010. Portugal's average quarterly GDP Growth was 0. ‡ Portugal has become a diversified and increasingly service-based economy since joining the European Community in 1986. but has been below par during the last decade . ‡ Over the past two decades. including the financial and telecommunications sectors.60 percent in March of 1991.30 percent in December of 1990 and a record low of -2.52 percent reaching an historical high of 3. successive governments have privatized many state-controlled firms and liberalized key areas of the economy.GDP ‡ The Gross Domestic Product (GDP) in Portugal contracted 0.

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. . . The extended family is quite close. Loyalty to the family comes before other social relationships. even business. Nepotism is considered a good thing. .SOCIAL CULTURAL ENVIRONMENT ‡ The Family The family is the foundation of the social structure and forms the basis of stability. . The individual derives a social network and assistance from the family. since it implies that employing people one knows and trusts is of primary importance.

which is displayed in the form of extreme politeness. especially in the cities. People are fashion conscious and believe that clothes indicate social standing and success. They are a people who retain a sense of formality when dealing with each other. .‡ Formality ‡ . . Portuguese are traditional and conservative. They take great pride in wearing good fabrics and clothes of the best standard they can afford. ‡ Appearances Matter ‡ . In Portuguese society appearance is very important. . .

Both the Catholic Church and the family structure emphasize hierarchical relationships. People respect authority and look to those above them for guidance and decision-making. . Society and business are highly stratified and vertically structured. . Portugal is a culture that respects hierarchy.‡ Hierarchy . Rank is important. . . . power and authority generally reside with one person who makes decisions with little concern about consensus building with their subordinates. and those senior to you in rank must always be treated with respect.making and problem solving. This need to know who is in charge leads to an authoritarian approach to decision. In business. . .

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wikipedia.org/wiki/File:Public_debt_percent_gdp_world_ma p. . 2.html 5. http://en. http://www.uk/resources/globaletiquette/portugal. .com/d/INR/table. CIA WORLD FACT BOOK 2.org ‡ IMAGES: 1.geert-hofstede.wikipedia.com 3.html .‡ SITES: 1. http://www. GOOGLE IMAGES.co. http://www.PNG 3.x-rates. http://en.kwintessential.