Culture can affect business in many ways and in different ways in different countries. This is where the national stereotypes that are so well-known such as the gregarious American, the formal Englishman, the excitable Latin, and the inscrutable Oriental all come into play. Even though these are stereotypes there is still some truth in these descriptions.
The Englishman who is transferred to a Latin American country, for example, could find the lack of formality a challenge at first. Only by close observation after a certain period of time would he be able to come up with a strategy to cope with the situation. A much better option would be to ask the advice of someone who knows the people and their idiosyncrasies. The story is often told of a new manager who orders his secretary to type a report and when she does not do it at once, asks a local friend the reason. He is told that the correct way to get something done in that country is by asking the secretary if she could type the report whenever she had the time.
Another cultural trait that is part of the lack of formality is the disregard for time. A foreign visitor would be invited to a dinner party supposedly starting at eight PM sharp. When he gets there on time he would usually find the hostess putting the finishing touches to the decor. A good rule of thumb is to add a half-hour or an hour to the appointed time.
The businessman has to be aware at all times that the rule of law does not generally take precedence. A famous Spanish fashion magazine once registered its name for copyright reasons and, several years later, learned that a local magazine was suing for copyright infringement. Investigations later revealed that the lawyer who represented the Spanish magazine was also the person who had filed the suit. When asked for an explanation he simply replied that he had forgotten that he also represented the magazine. As a result the magazine had to be taken off the market while the matter was decided in the courts. The other magazine, meanwhile, was being sold under the stolen name.
The businessman also has to take into consideration that, if his product sells well, it will soon be pirated. Since it would be almost impossible to stop the piracy his best bet would be to improve the quality of his product and rely on this to give him a slight edge against the counterfeiters.
Examples such as these all point to the informality that is prevalent in most countries of Latin America. Since this is a part of the culture, the businessman has to be aware of the pitfalls and make adequate provisions for all eventualities.
