Negotiating with Brazillians and Chinese and Indians

Negotiating with Brazillians

• Be patient. It will usually require several trips to get through a bargaining process.
• During negotiations, be prepared to discuss all aspects of the contract simultaneously rather than sequentially.
• Seemingly, extraneous data may be reviewed and rereviewed. Try to be as flexible as possible without making definite commitments.
• Sometimes Brazilians find aggressive business attitudes offensive—do not expect to get right to the point. Avoid confrontations, and hide any frustrations. If you change your negotiating team, you may undermine the entire contract. Brazilians value the person they do business with more than the firm name.
• Make sure you have a local accountant and notario (similar to a lawyer) or lawyer for contract issues. Brazilians may resent an outside legal presence.
• It is normal for a conversation to be highly animated, with many interruptions, many statements of “no” being interjected, and a great deal of physical contact.
• Brazilians are enthusiastic soccer (called fútbol) fans. Soccer is always a lively topic for conversation.
• Avoid deep discussions of politics and any topics relating to Argentina (Brazil’s traditional rival).
• Brazilians use periods to punctuate thousands (e.g., 5.550 = 5,550).
• Be aware that Brazilians consider themselves Americans also. Do not use the phrase “in America” when referring to the United States of America.

Negotiating with Chinese

• Be prepared for the Chinese to supply an interpreter. If possible, bring your own interpreter as well to help you understand nuances in the discussion.
• Avoid slang or jargon, especially figures of speech from sports. Use short, simple sentences, and pause often to make sure that your exact words are understood.
• Expect to make presentations to many different groups at different levels.
• Unless you understand the significance of different colors in China, use black and white for your collateral materials.
• Foreign executives—especially those from the United States—have a reputation for impatience, and the Chinese will drag out negotiations well beyond your deadlines just to gain an advantage. They may try to renegotiate everything on the final day of your visit, and they may continue to try for a better deal even after the contract is signed.
• Never exaggerate your ability to deliver, because the Chinese believe humility is a virtue—and also because they will investigate your claims.
• Chinese may not make any important decisions without first considering whether it is an auspicious day and hour.
• Be patient. Expect to make several trips to China before negotiations are final. The Chinese are cautious in business matters and expect a strong relationship to be built before they close a deal.
• Weights and measures are mainly metric, but several old Chinese measures may still be used.
• Bring business cards with a translation printed (in Mandarin Chinese) on the reverse side. Gold ink is the most prestigious color for the Chinese side. Never place a person’s card in your wallet and then put it in your back pocket.
• When entering a business meeting, the highest-ranking member of your group should lead the way.
• The Chinese expect the business conversation to be conducted by the senior officials of each side. Subordinates may speak when they are asked to provide corroborating data, or a comment, but in general, they do not interrupt.
• Familiarize yourself with all aspects of China before you arrive. The Chinese appreciate Western visitors who demonstrate an interest in their culture and history.
• Be patient, expect delays, show little emotion, and do not talk about your deadlines.
• At the end of a meeting, leave before the Chinese.

Negotiating with Indians

• Indians have a less hurried attitude toward time than North Americans. The concept “time is money” is alien to many Indians.
• While you should get sound legal and tax advice before negotiating any agreement, it is important to be flexible and not appear too legalistic during negotiations.
• Be prepared to offer competitive technology packages with close technical follow-up. The technical assistance you can provide and how effective your training support is will be critical factors in the decision.
• Expect delays; they are inevitable. The Indian government moves at its own pace, and communication within India may still be somewhat difficult. Be patient, and make a realistic assessment of the steps and time involved in finalizing any agreements.
• Always present your business card. It is not necessary to have it translated into an Indian language.
• Business in India is highly personal. A great amount of hospitality is associated with doing business. Tea and small talk are preludes to most discussions.
• When refreshments are offered, it is customary to refuse the first offer, but to accept the second or third. To completely refuse any refreshment is an insult. Drink slowly if you wish to limit your intake of the sugary, milky Indian tea.
• The word “no” has harsh implications in India. Evasive refusals are more common and are considered more polite. Never directly refuse an invitation—just be vague and avoid a time commitment. “I’ll try” is an acceptable refusal.