Establishing Business Relations With Latin America

General Goal: Informative

Specific Goal: Our goal is to inform the audience of the importance of communication for successful
business with Latin America.

I. Introduction
a. Imagine you have been promoted and your first task is to build a business relationship with a company
in Latin America that your company plans to merge with.  To assume you will easily board a plane and
treat the employees and managers of Latin America the same as you would in the United States would be
wrong.  Not knowing a culture in which you plan to do business with could cause you to the lose the
business.
b. It is important for you to listen to what we have to tell you so that you will become educated with the
crucial information that is needed in order to properly communicate in and out of the work place with
those from Latin America so that you can form successful businesses and relationships.
c. Our team is especially informed on the matters that concern the United States and Latin America
because three of our team members are from Central America, El Salvador, and Guatemala.  Since there
is diversity within the team of being born and raised in Latin America and the United States gives us more
knowledge than the average person living in the United States. In addition to the team's individual cultural
background we have done extensive research between the two cultures to confidently share with others.
d. A business relationship between the United States and Latin America can be successful when
differences are acknowledged with respect.
e. Here is a preview of what we will be discussing.
1.
2.
3.
4.

Now that I have briefly previewed what we will be discussing today, lets get right to the first point.

II. Main Point #1

When doing business with Latin American countries, you should be aware of important socio-economic
and cultural factors that can be valuable while embracing good business relationship.

A.  When people from different countries and two different languages get together, the possibility
of misunderstanding may increase substantially. The Global Leadership Strategies for the 21st Century,
emphasize these important aspects while doing business with Latin American countries,

1. The US and customs in Latin America varies in vast majority when it comes to customs. Foreign-
born Spanish-speaking and US born English-speaker may not only face language barrier, but
also cultural. For example, the concept of personal space is different in the US from Latin
American countries, where it comes to physical proximity; this is not only acceptable, but also
expected all the time. Being expressive, complimentary, as well as affectionate and
demonstrative are common individual characteristics in most Latin Spanish-speaking countries;
however, in the US these types of behavior can be misconstrued and can lead to claims of
workplace harassment.

2. In most cases the culture in Spanish-speaking countries tends to be more hierarchical than the
one in the United States. For instance, in some Spanish-speaking countries such as Guatemala
and Mexico the Hispanic culture encourages respect for authority, thus an employee may not
challenge a boss for fear of causing him or her to “lose face.” In corporate America, attitudes like
those that the one just mentioned discourage innovative thinking and initiative. Because of this,
American supervisors, and managers may incorrectly conclude the Hispanic employees do not
have good ideas or lack initiative.
B)    People in the United States embracing business relationship with Latin America should be aware of
major economic differences between the US and almost entire Latin America
1. The disparity in incomes between the rich and poor people in Latin America and the equal
distribution of income in the US, as the Integration and Economic Development informed, the
democratic leaders of the region face serious problems when trying to reform the state, enforce
modernizing public policies, or reduce growing unemployment and poverty in most countries. This
persistent obstacle to governments’ performance, within a framework of mediocre economic
growth rates, has eroded the Latin American states’ ability to satisfy demands and guarantee the
basic needs of the population.

2. The high degree of political and social instability compared with the more stable not perfect
situation of US, reflects that the United States will remain the leading force behind globalization
and main player in the Hemisphere. The kind of relationship that Latin America forges with the
United States will be a key factor in regional development. In the years ahead, Latin America’s
agenda with the United States will compete more than ever against that country’s own global
agenda, placing Latin America on the back burner of US priority list. The ability of Latin American
elites to articulate national interests and US will to integrate with the region will be decisive in the
future relationship

C)     One of the more difficult aspects of doing business globally is dealing with vast differences in legal
and regulatory environments. Because there is no global legal system, key areas of business law around
contract provisions and copyright protection can be treated and regulated in different ways in Latin
American countries than the US.

1. American businesspeople are regulated and must follow U.S. laws, regulations, and those of
nations in which they operate toward making its decisions. The Legal Aspects of Doing Business
in Latin America describe some distribution of bribes and other favors that are illegal in the US,
but those tactics as kickbacks and bribes are business-as-usual in many Latin countries.

2. The competitive disadvantages of US are if they are prohibited from giving bribes or undercover
payments to foreign officials or businesspeople who expect them. This increase the possibility of
jeopardize good business relationship with Latin American countries since the type of “recognition
are totally acceptable and considered part of regular business behavior”

Transition statement  
Differences in communication styles reflect differences in culture, the system of shared beliefs, values,
customs, and behaviors that govern the interactions of members of a society. Therefore, it is highly
important to get to know the cultural dimensions, business etiquette, and technology aspects described as
follow.

III. Main Point #2

Cultural dimensions between the United States and Latin America are in many ways opposite
from one another.  In order to be successful we need to know what those differences are.

A. Task oriented people versus those who put more emphasis on building their relationships.
1. The United States is an individualistic culture and based on the Geert Hofstede study
the United States has the highest dimension, 91 out of 100. Though there are some parts of Latin
 America with a low score of 21 in individualism the majority of the culture is considered
collectivistic.

2. People living in an individualistic culture are trained to look out for themselves and to
keep an eye on the task at hand. People raised in a collectivistic culture are focused on the family
or group so the importance lies on the relationship before the task. In order for both sides to work
in harmony it is important that both sides are aware of their differences. It is easy for an
individualistic person to seem impersonal and a collectivistic person to seem unmotivated. Both
may be untrue, a clear description of what the task is and the deadlines that need to met may
help in this area of a working relationship.

B. There are 24 hours in a day in every culture, it is how the time is used that differs between the
United States and Latin America.

1. According to Iowa State University, 2005, the United States is a monochronic culture,
one task at a time, schedule is important, time is not flexible otherwise money is lost, socializing
comes after work has been completed. Latin America is a polychronic culture, time is flexible,
more than one task at a time, waiting is not a nuisance.
2. Working in the United States you learn quickly that not being on time to your job, class,
interview, or meeting has repercussions. The repercussions could be losing your job, dropped
from a class, or demotion if the behavior continues. To be late for a schedule in the United States
is a sign of disrespect. In Latin America it could be a sign of disrespect if you do not make time for
conversation before getting down to business since rapport is more important. When business is
being conducted between the two countries it would be wise to schedule an extra 30 minutes to
an hour for socializing so that a schedule is in place and rapport is being conducted, both parties
are happy.

C. The world can be a scary place, there are rules to be abided by, it is how much control and
how many rules that separate our cultures.

1. According to Clearly Cultural, 2009, uncertainty avoidance indicates to what extent a

culture is willing to feel comfortable or uncomfortable in an unstructured situation. Based on the
Geert Hofstede study the average across the cultures is a 64, the United States scored a 46 and
Latin America a 76. The scoring tells us that the U.S. has fewer rules, less control over outcome,
and higher level of tolerance for change. Latin America has the goal to eliminate uncertainty by
controlling all that they can so that change does not happen.
2. With technology constantly changing so are businesses and people. In the United
States the people are constantly waiting for the next best thing to try or do. We are always trying
to find ways to make things better and more efficient, whether it be phones, cars, or the
environment. It is important to be respectful and patient when working with people from Latin
America. I know every time I purchase a new phone or computer there is a new program that I
have to figure out and it can be frustrating, but once it is learned only then can I enjoy it.

Now that we have explained a few of the cultural dimensions between the United States and Latin
America now lets discuss proper business etiquette.

IV. Main Point #3

When you only have one chance to make a good impression it’s important to know the proper business
etiquette for the individual culture.

A. Business attire in most Latin American countries, is conservative, particularly those in South
America. When preparing for a meeting in Latin America, if a man is unsure on what to wear to a meeting
it’s safe to wear a suit and tie. When wearing a suit it is best to stay with shades of dark blue, black, and
dark gray. Women need to stay with clothes that are not revealing, form fitting skirts that are knee length,
long dresses, or business suits are appropriate. High heels and manicures are expected, but be careful
that accessories are done in good taste. (King,2010)
2. In the United States we have watched the conservative dress code of women loosen
throughout the years. Watching the morning and evening news on television the professional
women working as news anchor, field reporters, and weather women used to wear knee length
skirts, blazer jackets over a buttoned blouse, and heels. Currently when watching the news we
see the women wearing low cut sweaters that put an emphasis on the woman’s breasts and
shorter skirts, sex sells in the United States.

B. Non-verbal communication can say more than words and in business misinterpretation can be
detrimental.
1. When meeting people face-to-face in the Latin American work force it’s important to
make sure that you shake hands when arriving and leaving a meeting. Men and woman can
shake hands but it is the responsibility of the woman to extend her hand first. Eye contact is
crucial to keep at all times during a conversation, this is a sign of respect. Consider a lot of casual
arm touching, shoulder patting, and back rubbing to be a good sign in business. Most importantly,
never try to force a friendship during business, this is a sign of being untrustworthy and your
business image will be tarnished.(Chalmers, 2011)
2. For those who have worked in the United States it may be difficult to adjust to the non-
verbal communications of Latin America. Big corporations in America are frequently having
lectures about the laws of sexual harassment. Americans fear close contact with co-workers
because if a touch is misinterpreted it could mean a loss of a job or lawsuit.

C. Gestures that are considered harmless to Americans can mean something offensive in Latin
America.
    1. The American symbol for “okay” is considered rude in Brazil because it is referring
to the female genitalia. Slapping your right fist into your left palm in considered obscene in Chile.
Holding your palm up with your fingers spread means “stupid” to Chileans. Do not cross your
fingers for luck in Paraguay, you are implying a sexual act and putting your hands in your pocket
in Mexico is seen to be rude. Make sure that any presentations that you will be giving are
rehearsed because it’s considered annoying if a person is fidgeting or tapping their pen in a
meeting for Ecuadorians.(Chalmers, 2011)

    2. Everyday in America we are giving gestures by waving hello, a high-five, flipping the bird,
and / or giving a thumbs up. These are social norms in a country we are from whether good or bad. It is
important to know the social norms of gestures in countries that we are doing business with. If you were in
a meeting in Brazil and was not aware of the appropriate signs and used signs that you were aware of
such as giving the “okay” sign for a presentation well done, the person may feel that you are insulting their
wife or a woman in the office. This type of behavior could severe ties with the company or cost you your
job.

Now that I have discussed with you the importance of non-verbal communication between the United
States and Latin America, let’s now address the final issue of Technology.

Main Point #4
Investing in information infrastructure and Internet technologies are key to help the United States and
Latin America continue a successful relationship in business and communication.

A. Latin American current  Information and Communications Technology market   expected to

grow 35% to $65 billion by 2013

1. According to the NASDAQ OMX 2010, eLandia believes that Latin America has
exceptional potential for information and communications technology growth. According to
Business Monitor International (BMI), the total value of spending on Information and
Communications Technology products and services in Latin America is expected to grow from
 US$48 billion in 2010 to US$65 billion by 2013, representing growth in excess of 35%. Brazil
represents more than 45% of the total investments for the sector in the region.

2.The U.S. environmental technology bi-lateral trade to South

America is directly following the agreement reached at the Rio
conference where the United States made the commitment of
increasing U.S. bilateral technological assistance to developing
countries, agreement between the U.S. and South American
countries.

B.  Government in Latin America and United States cant not deny that the region lags far
behind in science and technology, but promises to catch up are  the world's leaders  plans for the
future.

        1. According to the White House press office 2011, to enhance the well being of the
citizens of El Salvador as well as the United States, President Funes and President Obama also
underscored the importance of working together on technology, education, global climate change,
green growth, and clean energy.

                        2. President Obama, also announced two new initiatives: First, we’re launching a new
initiative to harness the power of social media and online networks to help students, scientists, academics
and entrepreneurs collaborate and develop the new ideas and products that will keep America -- the
Americas competitive in a global economy. And I’m proud to announce that the United States will work
with partners in this region, including the private sector, to increase the number of U.S. students studying
in Latin America to 100,000, and the number of Latin America students studying in the United States to
100,000.

       C. Latin American countries have gained more importance in the information and technology global
market.

1. According to Frost & Sullivan 2010, In recent years, moreover after the break of the
global economical crisis, countries in  Latin America Have become the preferred investment
destinations for many multinational vendors. Main vendors such as (Avaya, Cisco Systems,
ALU, Siemens, and Nortel) have already released telephony equipment, services, and
solutions focused especially on small and medium companies during 2009. The maturity of
well-developed markets such as Europe and North America, combined with the economic
downturn these countries have faced, is helping the evolvement of Latin American
countries.

2. For Example, The global market for high-technology goods—aircraft, pharmaceuticals,

communications equipment, and computer and office machinery—has been growing rapidly
and is a key sector driving worldwide economic growth.[2Over the last two decades, high-
tech manufacturing has grown in importance in the United States, Western Europe, Japan,
and—more recently—the newly industrialized economies (NIEs) of East Asia.[3] Since
these industries have become an important source of growth, a key question is whether
other developing and emerging countries can harness them to foster their growth. This
InfoBrief examines high-tech production and trade trends in seven Latin American
countries. These countries accounted for 85 and 90 percent, respectively, of economic
output and research and development expenditures in Latin America in 1996.

In conclusion we would like to summarize what you have learned today about doing business between
the United States and Latin America.
Conclusion
a
b
c

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