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Negotiation styles in South America

Preparation and Site SelectionTeam SelectionRelationship BuildingOpening TalksDiscussionsAgreement

Steps in the Negotiation Process

Hire a consultant in the country.Consult resource videos and written materials on negotiation.Choose a sitehere or there can be important.

Preparation and Site Selection

Consider number, age, gender, and rank of team members. Consider background of players.Evaluate other negotiators - their political affiliation, social class, age, and risk-taking propensity.

Team Selection

Time requiredIntermediaries or agentsFriendship versus business relationship

Relationship Building

Observe opening rituals - small talk, humor, etc.Consider the appropriateness of an agenda.Expect a variety of behaviors.Plan ahead for concessions.Move to an informal location when appropriate.

Opening Talks and Discussions

Close negotiations properly.Expect delays .Get tax and legal advice.Anticipate a long wait until final approval. Remember that contracts are not always considered final.

Agreement

The best practices apply by negotiators

Preparing a strategy based on clear objectives Developing options and alternatives Understanding the other partys reservation limits and underlying interests Planning concessions in advance and classifying into tangibles and non-tangibles Preparing valid arguments to counter objections Identifying ones strengths and weaknesses, vis-a-vis competition Being culturally sensitive, patient and a good listener Adopting a creative problem-solving attitude Having a plan to conclude and an implementation mindset Avoiding being overconfident

Relationships are importantBribery is commonGovernment is very involved in businessNegotiators chosen based on family connections, political influence, education, and gender (females should be in the background)Social competence is importantMost agreements are consummated over lunchAvoid gesturesNumerous meetings is the normal, time is not seen as important

Characteristic of South America Negotiating Style

Don't be in a hurry. Anyone who has negotiated in South America, or the Middle East will tell you that people in those cultures look at time differently than we do in North America and Europe. They know that if you rush, you are more likely to make mistakes and leave money on the table. Whoever is more flexible about time has the advantage. Your patience can be devastating to the other negotiator if they are in a hurry because they start to believe that you are not under pressure to conclude the deal.

"I can handle this myself" (to express individualism)."Please call me Steve" (to make people feel relaxed by being informal)."Pardon my French" (to excuse profanity)."Let's get to the point" (to speed up decisions)."Speak up; what do you think?" (to avoid silence)."A deal is a deal" (to indicate an expectation that the agreement will be honored).

Statements Characteristic of South America Negotiating Style

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In South America generally prefer to conduct business negotiations face to face. Most South American business people prefer to work with those they consider friends, rather than individuals with whom they have not established rapport - even if the strangers have a goodoffer.Negotiating in South American countries generally takes longer and will include many more discussions andmeetings.

Negotiating Skills

Argentines tend to present a united front and defer to a key negotiator, who is often the only one who speaks during themeeting.Argentines emphasize persuasiveness and use friendship to secureconcessions. However, on some occasions, they will also use temper as a tactic to get those concessions. Be patient and calmly get the negotiations back ontrack. Argentines will use contracts and have lawyers and accountants review them indepth.

Argentina

Many Brazilian firms are privately owned, therefore it is important to understand with whom you are conducting business and who will be making thedecisions.-- Brazil is a hierarchical society. Decisions may be made by top people who may not be present at yourmeeting.-- Compared with other Latin American countries, Brazilians are more individualistic and have less concern forconsensus.-- Brazilians tend to play it safe, so you will often be dealing with people who are hesitant to take the risks necessary to accomplish thegoal.-- Agreements will be confirmed with a handshake and a formalagreement.

Brazil

Advantages: Employ Legal Experts for Assistance to Get the Initiative in Trade NegotiationLead Regional Economy Integration (Mercosur) and Aggressively Expand Multilateral (WTO) and Bilateral Trading Relationships

Brazilian Advantages and Disadvantages in Negotiation Strategies

High Tax Liability and Lots of Government Scandals Protected by high tax rates, the electronic industry has inhibited the corporate development nationally.Careless attitude towards time and work, a weakness often caught by the negotiatorDisadvantages

Mexicans do not rush into business, so you need to slow your pace and not put all your cards on the table rightaway. Mexico is an insular community. If you offend someone, it may carry over into business with others who appear not to berelated. Don't bargain during negotiations. The negotiations are much stronger if you work on winning solutions for bothsides. Be prepared to discuss items not on the agenda. While an agenda is important in a negotiation, Mexicans may deviate from thetopics.Mexic

In business, you don't get what you deserve, you get what you negotiate.

Why take no for an answer? Successful people don't. They get what they want by negotiating better deals for both parties.