Dress Code
Appearances are very important in both business circles and society at large in Argentina. You will be partly judged on the way you look. If you are prosperous and successful you should look it. Business look is rather conservative with men favoring dark 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 jewelry.
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.
Language, Conversation and Relations
Although Spanish is the language of Argentina, many Argentines speak good English, having been educated internationally. In addition, many speak either Italian or German as a high proportion of Argentines have either Italian or German ancestry.
As mentioned before, meetings usually start with a long pre-meeting chat. Therefore it is important to know what the topics they like to talk about are. Argentines are well informed and proud of having the latest, most precise information. Moreover, it is imperative to know what is going on in politics and, especially, in sports for business negotiations. In general, Argentines are warm people and tend to get close and touch one another while speaking. When introducing one another, shaking hands is normal among men, women often exchange kisses on the cheek.
A great deal of respect is given to people who speak freely and express themselves forcefully. Show interest in what you hear, ask questions and let your companions elaborate on what they have to say about the topic at hand. It is possible to disagree with people and even criticize their opinions and yet remain on friendly terms. Indeed by remaining uninvolved and aloof, you may be viewed as disengaged and disinterested. Meetings can, therefore, appear to be quite noisy boisterous affairs with people frequently interrupting each other to add points or disagree with what is being said. Again this liveliness is viewed as a positive as it shows engagement and interest.
Argentines exhibit certain distinctive body language characteristics. Firstly, they stand in very close proximity to each other in comparison to many other cultures. Secondly they have very strong levels of eye contact and thirdly they are highly tactile in many situations. It is important that you try to accept these body language issues as it is unlikely that the locals will adapt to you. Argentines are rather vehement speakers, and frequently interrupt one another. Don't take offense if you are interrupted - it is a sign of participation and interest.
Titles, especially among the elderly, are very important. Address a person directly by using his or her title only. A Ph.D or a physician is called Doctor. Teachers prefer the title Profesor, engineers go by Ingeniero, architects are Arquitecto, and lawyers are Abogado. Persons who do not have professional titles should be referred to by their surnames rather than their first names in most business situations using the titles Señor (Mr.), Señora (Mrs.), Señorita (Miss) followed by surnames.
An appropriate business gift should be a gift that will not be perceived as a form of bribery. It should be inexpensive but in good taste, ideally recognizing the receiver's preferences and likings. Ensure the gift is properly wrapped and a card is enclosed.
Business Practices
Third party introductions are a necessary prelude to doing business in Argentina.
Argentineans will appreciate effort you make to speak Spanish, therefore have your business card translated into Spanish on the reverse side. To exchange cards is very common. Smile and make eye contact when receiving cards and take a few moments to look at your counterpart's business card after it is handed to you.
An initial visit should be made by an upper-level executive, accompanied by mid-level executives. Mid-level executives will attend subsequent visits to conduct negotiations that go into greater depth.
Displaying kindness and respect towards other people is valued highly, and there is a tendency to avoid aggressive behavior. It's important to be empathetic in your dealings. Moreover, you will find that expressing concern for the country's welfare and the Argentines you deal with to be an appreciated gesture.
Aggressive tactics will not go over well. It is better to specify priorities, terms, and conditions. Proposing a strong financial package, with options such as nontraditional financing terms is another asset. Providing continued service to your client, despite the long distances involved, can be a welcome gesture of commitment.
Argentine business culture is as bureaucratic as in other Latin American countries; however, higher-level executives have a reputation for efficiency. Usually, those in the highest positions of authority are entrusted with the final decision, so it's important to remain patient. Moreover, it may be necessary to make several trips before the transaction can be concluded.
Generally, contract agreements are followed rigidly, problems are resolved swiftly, and payments are made promptly, usually on deadline.
Entertaining for Business Success
Business entertaining is usually a social event and so the best policy is to let your host initiate any discussion of business. It's important that you make gestures to demonstrate to your Argentine companions that a relationship with them is a greater priority than business. People who focus solely on work-related matters will not make friends or succeed in business here.
Business entertaining usually takes place at major restaurants and hotels.
Customarily, the host or the most senior man present will be seated at the head of the table, with the guest of honor at his immediate right. The next seat of honor will be to the immediate right of either the hostess or the second-highest ranking Argentine.
Argentines emphasize good table manners and will observe how you measure up. The continental style of dining is a must. It is necessary to always keep your hands visible when dining, with your wrists resting on the edge of the table. It is polite to accept everything that you are served. If you come across something that you don't like, just take a sample bite or two for the sake of politeness. Wine should be poured with the right hand.
Before smoking, it's considered polite to offer cigarettes to your companions first. After a dinner party or similar occasion, the best policy is to make a phone call expressing your thanks.
Business Structure
Argentine society in general is very status conscious. Great emphasis is placed on what social class you belong to, which university you went to, where you are from and where you live now. In such a class conscious society, it is hardly surprising that all local business structures would tend to be extremely hierarchical.
Argentine companies are often what are usually referred to as relationship driven hierarchies which means that the chain of command as outlined in a published organization chart will not necessarily correspond exactly to the actual internal structure of the business. Who reports to whom and at which point in the chain the decisions are made could depend as much on a complex web of relationships and obligations as it might on the title of an individual. It is usually a very good idea to have a local guide to help you through this complexity - if you haven't got that local guide, be very observant.
As you would expect in such a hierarchically driven culture, it is important that you are dealing with the right person within an organization as relatively less power will have been devolved than might be expected in a more matrix organization. Do not waste time negotiating with the wrong people.
SUMMARY
If I sum up some of the main things a businessman has to be careful about when doing business in Argentina. First of all, personal relationships are important and must be developed before business is done. Argentines are tough negotiators, so concessions will not come quickly or easily, but good relationships with counterparts will shorten negotiations. Be punctual for business appointments, but prepare to wait thirty minutes for your counterpart, especially if you are meeting an important person. The pace of business in Argentina is slower than in the Western Europe, so be prepared that a meeting that is going well could last much longer than intended, even if it means postponing the next engagement. Decisions are made at the top, so try to arrange meeting with high-level personnel. Be prepared for a certain amount of small talk before getting down to business and confirm meetings one week in advance. These are some of the main characteristics of doing business in Argentina. If a person is sensitive to culture diversities, than doing business in Argentina should not be a problem.
REFERENCES
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Lewis, R. D. (2005). When Cultures Collide: Leading Across Cultures (3rd ed.). Boston: Nicholas Brealey Publishing.
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Communicaid. Doing Business in Argentina/Argentinian Social and Business Culture. Retrieved January 11, 2009, from web site: http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing%20Business%20in%20Argentina.pdf.
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International Business Etiquette and Manners. Retrieved January 15, 2009, from web site: http://www.cyborlink.com/besite/argentina.htm.
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World Business Culture. Retrieved January 16, 2009, from web site: http://www.worldbusinessculture.com/Argentine-Business-Structures.html.
