While the Chinese generally take time to study the cultural norms of a culture in which they intend to invest, the Brazilians have not yet made this tactical “investment.”

• Many Brazilian companies haven’t mastered the use of the Zhongjian Ren (intermediary).
• They haven’t effectively been able to leverage Guanxi in their deal-making.
• Their negotiations tactics are not reflective of Jiejian is the single most critical deal term.
• They don’t appear to realize Chiku Nailoao (a show of endurance) in every stage of the negotiations buys respect.
• They struggle with Mianzi (loss of face) issues that sometimes cause the Chinese to go to a competitor.

For Brazil, the metaphorical message is clear. China is at the helm of the global economic supertanker of the future. It is up to Brazil to decide what role it will play in the voyage and how it wants to pay for the ride. We would prefer that Brazilian companies not pay the price of lost opportunity. We therefore whole-heartedly encourage them to contact us to learn more about the global mindset that will help them to succeed in China through exploring either our BMIA Certification Program or pursuing any of our Needs Assessment opportunities that will help them to optimize their business with Chinese companies.

At first glance the city can seem rather more style than substance, but get to know it and you will be pleasantly surprised. Milan may be best known on the international stage for fashion, particularly twice a year, in spring and the fall, when fashionistas, designers and supermodels arrive for the fashion weeks. Armani, Dolce & Gabbana, Gucci, Prada, Pucci, Versace and the rest may manufacture their clothes elsewhere, but Milan is where they choose to put them on show. But don’t forget the city is also one of Italy’s main business centers, home to the stock exchange and plenty of corporate headquarters. And then there’s the dramatic cathedral, La Scala opera house and, of course, two of Italy’s top football teams, AC Milan and Inter Milan.

It may be fashionable to dismiss Milan as lacking the cultural masterpieces and splendor of cities such as Rome and Florence, but when it comes to doing business in Italy, with a little fun and entertainment thrown in for good measure, few places can beat it.

Getting around: If you are staying in the city center, you can, of course, walk to many of your appointments. But if you tire of dodging motor scooters, there is a comprehensive transport system operated by Azienda Trasporti Milanesi that allows you to swap between the metro, buses, trams and trolleybuses using the same tickets.

Alternatively, taxis, which are usually white or yellow, can be hailed on the street or hired at taxi ranks outside train stations.

Best hotels:If you want to stay at what many consider the best hotel in Milan, opt for the 400-room Hotel Principe di Savoia Milano at Piazza della Repubblica 17 (www.hotelprincipesavoia.com, tel: +39 02659 5838) in the center of the city, where facilities include a business center and WiFi throughout. There’s also a fully equipped fitness center and swimming pool.

An alternative is the 118-room Four Seasons Hotel Milan at Via Gesù 6-8 (www.fourseasons.com/milan, tel: +39 (02) 77088), which is housed in a fabulous building that began life as a convent in the 15th century.

Best bar for after-work drinks: Best bet is to head to the Navigli area to the south of the center, where there’s a superb selection of bars, many serving free “aperitivo” buffets of antipasti with the drinks between about 6 p.m. and 9 p.m. And with plenty of restaurants and clubs, this area is also a good option if you want to make a late night of it.

Best restaurant for business entertaining: Follow the lead set by Milan’s mover and shakers and make a booking at Cracco at Via Victor Hugo, 4, (www.ristorantecracco.it, tel: +39 (02) 876774), whose dishes include pasta with sea urchins and coffee.

There’s also an exceptional wine list. Alternatively, if you fancy joining the fashion set you could head for the Italian version of Nobu in Armani World at Via Pisoni, 1 (www.armaninobu.it, tel: +39 (02) 6231 2645).

Business etiquette: Just as in other major Italian cities, good manners are important at business meetings, though timing can be flexible. Always remember to shake hands when arriving and leaving and don’t be surprised if you also get a hug. Italians tend to be much more tactile than northern Europeans and Americans. Business hours are normally 8.30 a.m. to 4.30 p.m., with some businesses, including banks, closing for around at hour at lunchtime. After-work entertaining is the norm. When it comes to negotiating in this culture, the discussion we’d have to have is more extensive. We apply our BMIA analysis to the negotiation process. This course is generally taught by our CEO, based on her two-decades of experience as an international attorney and life and work in experience in Italy.

What else you need to know: It is often possible to get tickets for football matches involving Milan’s top teams. Your best bet is to ask your hotel concierge, who will almost certainly have an inside track. Use the same source to get hold of tickets for performances at La Scala.

Where do meetings take place? Meetings usually take place in offices, bars or restaurants. Don’t be surprised, though, if you also get invited to visit your contacts’ homes for a family supper; in which case, be sure to take a suitable gift, such as flowers or chocolate.

How to get your laptop fixed: Computer repair companies in Milan are few and far between. One that has been recommended, however, is Computech at Via Luigi Pulci, 14, (www.computech@fastweb.it, Tel: +39 (02) 6428258).

What to do in your time off:

In a whole afternoon: Explore the Navigli canal area, a very old district of Milan made up of winding alleys with tiny shops and boutiques selling almost everything. If you are lucky, you may be there on the last Sunday of the month (except July and August) for the Mercatone dell’Antiquariato, when hundreds of antique dealers line the canal towpaths. When you’ve had your fill of shopping, head for the monastery of Santa Maria delle Grazie to see Leonardo da Vinci’s “The Last Supper.”

In three hours: Head for the Duomo, the cathedral, which took more than 500 years to complete and which dominates the city center. If you feel up to it, climb the medieval spiral staircase, which brings you out onto a roof terrace with an unforgettable view.

In one hour: Choose a table outside almost any city-center bar to enjoy a pre-dinner Campari and soda as you watch a the start of the evening parade of beautiful people window-shopping.

Best gift to take home: Milan being fashion-central means clothes are probably the best gifts to take home, provided you’re sure of the sizes. Check out La Rinascente or UPIM department stores, where the quality is high but prices are reasonable. If you want to give your credit cards a workout, there are plenty of designer boutiques to help you on your way.

Looking for more hints, from best coffee to contacts in the Italian government? For that you’ll have to contact us directly. LOL

LHW is a prestigious luxury hospitality organization representing 450 of the world’s finest hotels and resorts in more than 80 countries and offers its clients the largest collection of luxury hotels, resorts and spas to choose from.

Requirements for becoming a member of LHW stipulate that a hotel must meet demanding standards of excellence in all areas affecting guest comfort, convenience and well being. Only the most illustrious hotels are accepted as part of their collection, and each member hotel is periodically re-inspected to ensure strict adherence to the company’s quality standards.

This exclusive showcase event allowed hoteliers the opportunity to meet and build relationships with the best travel professionals from several regions in South America and to encourage travel to the TCI.

Brazil and Argentina were selected as the host countries for the showcases because both countries have exhibited uncharted growth in the luxury market in recent years. Sao Paulo, Brazil, which for years has been a global economic hub for Latin America, is now just behind China in terms of the world’s largest growth rates in gross domestic product.

So now the issue becomes, what will Brazil and Argentina do to woo U.S. travelers. The values associated with “luxury” are very specific to each culture. While North Americans value down comforters (even in the hottest of climates — complimented, of course, by efficient air conditioning) many South American hotels gear their luxury value-add toward a consumer model that diverges from the traveler they’re trying to attract. By using the BMIA model, we’ve helped a number of hotels optimize their offerings to suit the culture their targeting. Let us help your hotel to leverage the power of culture to optimize the bottom line by contacting us at your earliest convenience.

Due to both Wenzhou’s cultural and geographical remoteness and its lack of natural resources (land, minerals, etc.), the Chinese central government has left the people of Wenzhou relatively autonomous. Away from the center of the political and economic stage, its people are more independent, self-reliant, and generally more business-oriented. Numerous books have been published about the business sense of people from Wenzhou. Hence, when China switched from its planned economy to its so-called capitalist economy with Chinese (socialist) characteristics in the late 1980s, its people adjusted well to the new system and took advantage of it. China Daily notes that investments from Wenzhounese buyers play a disproportionately large role in the increase in Chinese property prices.

The people of Wenzhou are equipped with business sense and a commercial culture more dominant than anywhere else in China. Wenzhou has two economic characteristics: it was the first to launch a market economy, and it has the most active and developed private economy in China. In the process of developing its economy, its people have survived adversity, with little positive help from the government.

At Universal Consensus, we’d like to help banks realize the significance of this cultural dynamic and how to work around it to be key players in upcoming investment opportunities by using our BMIA model to evaluate the issue as it relates to our clients and make recommendations that will significantly impact the ability of our clients to get to the negotiation table and win. Please contact us if we can be of assistance.

Last October the one-year corporate lending rate that serves as a widely cited benchmark was 5.31%. In April, after a series of increases, it reached 6.31%. That increase is substantial enough—almost 20%—but the true extent of the tightening seems to be much greater than official rates suggest.

That is because a lot of lending in China takes place in shadowy private markets, further complicating the picture for many, including Canadian banks who might otherwise be gleaning more of the market share regarding growing Chinese investment in-country. The so-called “Wenzhou rate”, based on the private-borrowing market in a famously entrepreneurial city in south-east China, has risen to 6-8% a month, up from about 1.5% a month in late 2008 and matching levels seen in early 2008 when credit was genuinely scarce. Pawnbrokers are charging 4% a month for loans that are, by their very nature, fully secured.

Access to lower rates seems, at least in part, tied to how much employment a company provides. The bigger manufacturers—those with perhaps more than 10,000 workers—seem sanguine about getting hold of credit (if not workers and materials). Smaller suppliers are in a tougher position, which gives added clout to the trade buyer who can pay more upfront or the full balance fast or, preferably, both.
As is often the case in China, new terms are being added to contracts sealed at the fair. The most significant stipulations are tied to movements in the yuan. In the past, prices offered by suppliers were good for three months. At this year’s fair there is a broadly accepted provision that voids any price offer if the yuan appreciates to 15.4 cents or more (it is currently worth 15.3 cents). Suppliers are willing to levy huge increases—in one reported case pursuant to several credible sources, including the Wall Street Journal and the Economist, 40%—and walk away if the terms are not met.

At Universal Consensus, we tend to repeat time and again that keeping on top of these trends through our Global Tune Up Program is fairly critical. Sometimes we see these trends coming, or at the very least, we are tracking them to coach our clients in a way that keeps them agile. Getting caught by surprise in this market, is not the way to go. Please contact us if we can be of assistance.