Executive Summary
Culture plays a significant role in negotiation of business deals
and in their finalization. This paper identifies the critical aspects and
details of the three countries in order to judge the feasibility of a new
proposes business venture. The paper begins with a brief introduction and moves
to the discussion of brief description of the strategic overview of the three
countries. The report then moves to the political scenario and the economic
aspects of the three countries. The later parts of the report addresses factors
like CSR, negotiations and other cultural aspects using which a decision in
conducting business in these three countries can be made. It is noticed by the virtue
of this report that Linamar company is better off in investing and expanding
the operations in Brazil and Argentina. However, they would need a professional
support as far as conducting business in Russia is concerned. The same is
highlighted in the cultural forces part of this paper as well.
Introduction
The
purpose of this paper is to critically evaluate the cultural differences between
three countries namely Argentina, Brazil and Russia. The objective is to
prepare a brief country profile in order to gain greater insights about doing
business in Canada in relation to the above mentioned three countries. The main
product line relates to the Canadian product Linamar company which is primarily
into dealing with agricultural implements. It has been assumed that the
organisation is now looking to expand its operations and make the most of the prevailing
opportunities in these three countries.
Strategic Overview
|
Brazil: The geographic location of the country of
brazil is in Caribbean and the Latin American region. The current population
is marked at 198,656,019. The major trading partners are Argentina and
Germany as both these countries account for both imports and exports with
Brazil. Portuguese is the official language of Brazil and the language of
English is used for dealing with foreign clients.
|
|
Russia: The current population of Russia is marked at
142.4 m (year 2012). The official language used in Russian. The use of
English is limited with a very few people who use the language fluently.
China and Ukraine are the most importance trading partners for the country of
Russia. The geographic location comes under the parts of Central Asia and
Europe.
|
|
Argentina: The population of Argentina is on the lower
side relative to that of the above two countries and is marked at 41 million
(2012 data). The official language is Spanish with high usage of English in
selected parts of the country. United States and Brazil are the most
important trading partners for Argentina in the current times. Like Brazil,
the geographic region is the Caribbean and the Latin America
|
Governmental and Diplomatic
The main
political parties in Brazil are listed as under:
Ø
Brazilian
Socialist Party
Ø
Brazilian
Communist Party
Ø
Workers
Party
Ø
Party of
the Brazilian Democratic Movement
The main
political parties in Argentina are named as UCR (Union Civica Radical) and
Justicialist Party, which is also referred to as the Peronist.
The main
political parties in Russia are listed as under:
Ø
United
Russia
Ø
Patriots
of Russia
Ø
Yabloko
Ø
Communist
Party of the Russian Federation
The
political stability has been seen only in the country of Argentina relative to
that of Brazil and Russia. In terms of government intervention for trade
relations with foreign countries, Brazil and Argentina as a country are favored
as there are strict regulations in Russia. The business relations of Brazil and
China are very good with Canada. However, the same cannot be said for Russia
which has limited trade relation with the country of Canada.
Information of representatives of foreign country in Canada
|
Country
|
Embassy Address in Canada
|
Support Services offered
|
|
Argentina
|
81, Metcalfe Ottawa ON K1P6K7 Canada
+16135658367
|
Visa Services, Travel Services, Money
Exchange among other things
|
|
Russia
|
285 Charlotte Street Ottawa ON K1N8 L5 Canada
+6132354341
|
Tourist Visas, Consular Division, Business
Visas, Legalization, Business Information among other important things
|
|
Brazil
|
450 Wilbrod St Ottawa ON Canada
|
Capital Services, trade relations services
among other things
|
Key Economic Indicators
|
Country
|
GDP
|
Trade Balance
|
|
Brazil
|
$2400 billion
|
Current Standing: USD 780m
|
|
Argentina
|
$718.9 billion
|
Current Standing: USD 1151m
|
|
Russia
|
$2014 billion
|
Current Standing: USD 1363m
|
The
average annual income for three countries in terms of Canadian Dollars is shown
as:
Brazil –
2303 CAD
Argentina
– 1987 CAD
Russia- 2240 CAD
The
major industries of Brazil include the agriculture, mining and manufacturing.
Argentina specializes in textile, machinery manufacturing and mining etc.
Russia is more known for its mining and process of raw material industries.
The
major trading partners are Argentina and Germany as both these countries
account for both imports and exports with Brazil. China and Ukraine are the
most importance trading partners for the country of Russia. United States and
Brazil are the most important trading partners for Argentina in the current
times.
Corporate Social Responsibility
Cultural Aspects
Business Practices
Negotiating the Deals
In
brazil, the political power plays huge influence in negotiation of key deals.
Corruption also plays a critical role in the country of Brazil. There is not
much difference when the same analogy is applied to the case of Argentina.
However, the scenario changes significantly when Russia is considered. A part
of the reason for the same is that Brazil and Argentina share the same
geographic location and hence there is not much difference in the cultural
aspects between the two countries. The negotiations between the organisations
take place in a more formal manner in Russia. The negotiations and the deals take
place in a much informal manner in the case of Brazil and Argentina.
Relating with the current product
It is
also seen through the research conducted this report that Brazil and Argentina
have agriculture as their primary industry. That indicates that there is bound
to be fierce competition in the market for Linamar company. Also, the domestic
companies would be favored more by the local government which is a potential
cause of concern for the Linamar company. On the other hand, there is not much
competition in Russia when it comes to agriculture, which indicates that there
are bright prospects for Linamar company. As far as economic prosperity is
concerned, Russia has the highest population among the three which offers more
potential for business expansion. Brazil and Argentina are favored for an easy
going official and unofficial culture. Given the prospects of expansion of
agriculture industry in Russia, it is recommended that the Linamar company must
start with expansion projects in Russia first. In the later stages, it would be
more conducive to expand in countries like Argentina and Brazil given the scope
of it is economic instability.
Conclusion
The
building up of a country notebook or profile is of utmost importance to
understand the feasibility of operations in a foreign country. In order to
avoid potential cultural shocks at a later stage, senior management of
organizations often ask their international marketers to do as much research as
possible about a given country which includes its economic, political, social,
legal and other cultural aspects. This paper identifies that case of expansion
for Linamar company in three countries namely Argentina, Brazil and Russia. It
was noticed that Russia was the most feasible option out of the given three
alternatives. The primary identified reasons for the same
is that it would allow Linamar company to expand into a completely new
geographic region.
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