MBA 571 INTERNATIONAL BUSINESS MANAGEMENT

Assignment 1

ARGENTINA - BUSINESS CULTURE

BUSINESS CULTURE OF ARGENTINA

Argentina is officially the Argentine Republic (Spanish: Repblica Argentina), is a country in South America. The country is a federation of 23 provinces and the autonomous city of Buenos Aires its capital and largest city. It is the eighth-largest country in the world by land area and the largest among Spanish-speaking nations. Argentina is a founding member of the United Nations, Mercosur, the Union of South American Nations, the Organization of Ibero-American States, the World Bank Group and the World Trade Organization, and is one of theG-15 and G-20 major economies. Capital: Buenos Aires Languages: Spanish Currency: Argentine Peso (ARS) Independence: from Spain Legislature: Congress Upper house -Senate Lower house -Chamber of Deputies Government: Federal representative presidential republic Ethnic Groups: White (85%), Mestizo (11.1%), Amerindian(1%), Other (2.9%) Demonym: Argentine, Argentinean Argentine culture has significant European influences. Buenos Aires, its cultural capital, is largely characterized by both the prevalence of people of European descent, and of conscious imitation of European styles in architecture The other big influence is the gauchos and their traditional country lifestyle of self-reliance. Finally, indigenous American traditions (like yerba mate infusions) have been absorbed into the general cultural milieu. BUSINESS APPOINTMENT Like the Europeans, in Argentina the dates are written with the day first, then the month and then the year, i.e. January 1st 2005 is 1/1/2005. It is important to make appointments to see prospective clients through a third party, an enchufado. The enchufado acts as a middle man with contacts within an industry. Doing business in Argentina involves building up a relationship and establishing trust so it is unwise to consider it acceptable to approach companies directly.

CONVERSATION ETIQUETTE Every country has a unique conversation etiquette that is driven by its own culture and traditions. Strong European influences make Argentines less open to discussion of new ideas than citizens of most other Latin American countries. Strong personal relationships also make Argentines more concerned about the consequences of an action than about the action itself. Language Spanish is the official language, although many people speak English, Italian, German, or French. Be aware that Argentine Spanish is heavily influenced by Italian and is unlike Spanish spoken anywhere else on the continent. Literature is written in Spanish, although many businesspeople have the ability to speak English. Greetings Handshaking in Argentina is common when meeting for the first time as well as giving a brief nod to both men and women. Close male friends will shake hands or embrace upon meeting; men will kiss close female friends. Close female friends often tend to kiss each other as well. Titles are especially important among the elderly. You must address a person directly by using his or her title only. A Ph. D or a physician is called a Doctor. Teachers prefer Profesor, engineers go by Ingeniero, architects are Arquitecto, lawyers are Abogado, etc. Persons who do not have professional titles should be addressed as Mr., Mrs., or Miss, plus their surnames. In Argentina for example, you would say Senor, Senora, or Senorita. Only the fathers surname is used when addressing someone. (i.e. a persons name is Samuel Antonio Brandt Perez; you would call that person Senor Brandt) When a woman marries she usually adds her husband surname and goes by that surname.

Mr. = Senor Mrs. = Senora Miss = Senorita

Gestures A pat on the shoulder is a sign of friendship. Avoid placing your hands on your hips while speaking. Make sure you cover your mouth if you must yawn or cough. Sit only on chairs, not on a ledge, box, or table. Avoid placing your feet on anything other than a footstool or rail. Never place them on a table. The gesture that some Americans use to mean so-so (twisting the flat, open hand from side to side) is also commonly used in Argentina. The meaning is also the same. To indicate hurry up or a lot, Argentines use the thumb and middle finger touching (as if holding a pinch of sugar) and then tap them with the index finger. Conversation Argentine people converse at a closer distance than Americans are often used to, they may place a hand on the other persons lapel or shoulder. Maintaining eye contact is very important even though you are in such close quarters. Try to avoid offering any of your political opinions. Be especially cautious about praising Argentinas neighbors (notably Chile). Argentina has fought with all of their neighbors. Good conversation topics include soccer, history, culture, home and children, and opera. Bad conversation topics include the Peron years, religion, and the Falkland Islands conflict. Most Argentines are anxious to put the Falklands war behind them, so avoid bringing up the subject. However, if it is discussed, remember to refer to the islands by their Argentine name, the Malvinas Islands. NEGOTIATION DEALS Establishing trust and mutual benefit oils the wheels when doing business in Argentina. Patience is key to ensuring success as it can often take several trips to the country to finalise any deal. Business is slow due to the several layers of decision making combined with masses of redtape. You should approach business meetings and negotiations as both a potential business partner and a friend. Always engage in small talk until the topic of conversation changes to business. Do not be put off if phone calls are taken during a meeting - this is not meant to be rude. Avoid any high pressure.

BUSINESS DRESS Argentine businesspeople are formal and conservative regarding style and colors. Doing business in casual attire is not perceived as appropriate. For men, blue, grey and brown suits, white or light blue shirts and conservative ties are the norm. Women prefer dresses in blue or pastel colors with black or brown shoes made of leather.
Wearing light colors is not recommended as this is not the tropical country some may assume it might be. Avoid eye-catching accessories, and wear only discreet jewellery.

For dinner parties or restaurant outings, men wear suit and tie and women elegant, conservative dresses. You might dress more casually in the summer, when slacks and short sleeved shirts for men and more casual dresses for ladies are prevalent. Avoid shorts. Argentines prefer and expect conservative, formal business attire-suits for men and suits or dresses for women. Understated British style is preferred over U.S., French, or Italian. Women should wear conservative hemlines and necklines, although a sense of style is appreciated. Accessories, jewelry, and makeup should be understated and of good quality: Argentines often judge people by their dress, paying special attention to the shoes, which should be expensive and wellmaintained. Attire in more rural areas and at lower levels of authority is less precise, but remains an important indication of your seriousness, status, and sense of appropriateness.

GIFT GIVING Business Gift Giving

In a business context, choose gifts that will not be perceived as a form of bribery. Choose something inexpensive but in good taste with a recognition of the receiver's preferences and likings. Ensure the gift is properly wrapped and has a card enclosed. Personal Gift Giving

When visiting an Argentine home, flowers [red, white roses], chocolates for the hostess and a well selected bottle of wine for the host are your best choices. Ensure the gift is properly wrapped and has a card enclosed.

PUBLIC BEHAVIOR Prior appointments are necessary Argentine executives may put in a very long day, often lasting until 10:00 p.m.. An 8:00 p.m. business meeting is not unusual Business dinners are popular and are usually held in restaurants; business lunches are uncommon outside of Buenos Aires, since most people go home to eat lunch Tender beef and red wine virtual national symbols. American beef and red wine compare poorly to theirs Long meals and conversation is the norm. Crossing the knife and fork signal "I am finished". Never pour wine back-handed; its considered impolite. When dining, keep your hands on the table, not in your lap Gifts to be avoided include personal items such as ties and shirts, leather, and knives. High taxes on imported liquor make this a highly appreciated gift; the most popular are scotch and French champagne If the visitor is entertained in the Argentine home, he/she should arrange to send flowers or candy to his hostess. Bird-of-paradise flowers are highly prized A guest should always wait for the host to sit down before sitting, and to open the door for him before leaving.