THE SOCIO- CULTURAL ENVIRONMENT BRAZILIAN DIVERSITY BRAZILIAN FAMILY VALUES BRAZIL CLASS SYSTEM VALUE SYSTEMS REGLION

VALUE SYSTEMS REGLION LANGUAGE VERBAL COMMUNICATION NON VERBAL COMMUNICATION NON RELATIONAL COMMUNICATION FESTIVALS MUSIC LITERATURE MOVIES DANCE PERSONALITY LEISURE SPENDING HABITS MEETING ETIQUETTE GIFT GIVING ETIQUETTE DRESSING ETIQUETTE BUSINESS CARD ADVERTISING NORMS

BRAZILIAN DIVERSITY Brazil is a mixture of races and ethnicities, resulting in rich diversity. Many original Portuguese settlers married native women, which created a new race, called 'mestizos'. 'Mulattoes' are descendents of the Portuguese and African slaves. Slavery was abolished in 1888, creating over time a further blurring of racial lines. Unlike many other Latin American countries where there is a distinct Indian population, Brazilians have intermarried to the point that it sometimes seems that almost everyone has a combination of European, African and indigenous ancestry.

BRAZILIAN FAMILY VALUES The family is the foundation of the social structure and forms the basis of stability for most people. Families tend to be large (although family size has been diminishing in recent years) and the extended family is quite close. The individual derives a social network and assistance in times of need from the family. Nepotism is considered a positive thing, since it implies that employing people one knows and trusts is of primary importance. Loyalty in a collectivist culture is paramount, and over-rides most other societal rules. Family ties in Brazil are very strong, and typically families will live in close proximity to their extended family, often in the same household. A young man or woman will often live with his/her parents until he/she is ready to be married. Whereas the "Western" roots of Brazilian culture are largely European (evidenced by its colonial towns and even sporadic historic buildings between the skyscrapers), there has been a strong tendency in the last decades to adopt a more "American way of life" which is found in urban culture and architecture, mass media, consumerism and a strongly positive feeling towards technical progress. Consumer Insight The main idea of Crossword is having a set to loyal customers and building their trust and providing a homely atmosphere. As mentioned earlier Loyalty is paramount as it over rides most societal rules. BRAZILLIAN CLASS SYSTEM Despite the mixing of ethnicities, there is a class system in Brazil. Few Brazilians could be described as racist, although social discrimination on the basis of skin colour is a daily occurrence. In general, people with darker brown skin are economically and socially disadvantaged. The middle and upper classes often have only brief interaction with the lower classes - usually maids, drivers, etc. Class is determined by economic status and skin colour. There is a great disparity in wage differentials--and therefore lifestyle and social aspirations-among the different classes. Although women make up 40% of the Brazilian workforce, they are typically found in lower paid jobs such as teaching, administrative support, and nursing. The 1988 constitution prohibits discrimination against women, but inequities still exist. The one place where women are achieving equality is in the government.

Brazil has a very high belief in power. It is believed that each person has place in the social hierarchy, that authorities should not be challenged, that hierarchy and inequality are appropriate. They also believe that those who have social status have the right to use their power anyway they deem desirable. LANGUAGE Language is one of the strongest elements of Brazil's national unity. Portuguese is spoken by nearly 100 percent of the population. The only exceptions are some members of Amerindian groups and pockets of immigrants who have not yet learned Portuguese. The principal families of Indian languages are Tup, Arawak, Carib, and G. There is about as much difference between the Portuguese spoken in Brazil and that spoken in Portugal as between the English spoken in the United States and that spoken in the United Kingdom. Within Brazil, there are no dialects of Portuguese, but only moderate regional variation in accent, vocabulary, and use of personal nouns, pronouns, and verb conjugations. Variations tend to diminish as a result of mass media, especially national television networks that are viewed by the majority of Brazilians. Consumer Insight All the taglines advertising etc, all the copywriting will mentions will be in Portuguese. VERBAL COMMUNICATION Communication plays a vital role in a culture, because not only does it help to establish a culture, but it also helps to maintain the culture. Verbal communication is told through verbal codes, symbols that are governed by a set of rules that dictate the order they go in and what they mean. There are several verbal communication norms to consider when comparing two cultures, such as turn-taking expectations, organizing and expressing ideas, amount of talking, and conversational topics that are either preferred or avoided. In Brazil the conversation style is very dynamic and often considered very noisy. It is common for everybody to seem as if they are talking at once. Interruption is not uncommon, but what is common is not being able to finish one's ideas in a conversation. In other countries some people are usually offended by this behaviour and consider it to be rude, but in Brazil, no one in general is offended (Another aspect of Brazilian communication that is different from the United States is that they are very flirtatious when communicating, although they often do not mean that they actually want something sexual. In Brazil the topics in the conversations tend to be wide-

ranging, and the original topic tends to stray away to many different points. Most conversational topics are accepted, although some topics are avoided, such as talk about crime, corruption, politics and deforestation in the Amazon). The conversation topics accepted and avoided are similar to the people of the United States, because sometimes these issues can bring up very sensitive personal issues, especially politics. NON VERBAL COMMUNICATION Nonverbal communication is said to be about three-fourths of our communication, according to communication specialists. While communicating it is practically impossible to not use nonverbal communication, through ways such as eye contact, personal space use, touching, and gestures. Nonverbal communication is significantly different between different cultures, and knowing the difference helps one to be more intercultural competent. In Brazil, the people tend to look the person they are talking with straight in the eyes. NON RELATIONAL COMMUNICATION Relational communication norms are how people in a culture carry out greeting rituals, selfdisclosure, and conversational expectations. Greetings rituals and introductions in Brazil are often seen as formal .In this ritual, the men shake hands and women kiss on the cheek. Also, when leaving you must wait for your host to accompany you, otherwise that is considered being very rude. Brazilians are more willing to talk about more things, even more personal things than in Brazil, although this is attributed partially to the fact that most people drink a lot, which may lower their inhibitions. Brazilian's are open to discussing personal, although during business meetings one should refrain from talking about personal matters In friendships though, there are no limitations on conversations. Someone from the United States might be surprised to find that Brazilians often talk about personal matters, even embarrassing matters in conversations. They do not pretend everything is okay when its not. When dealing with conflict though, Brazilians tend to avoid direct conflict, by dealing with the conflict in a more indirect way Brazilians use a lot of body gestures in informal communication, and the meaning of certain words or expressions may be influenced by them.

The thumbs up gesture is used everywhere and all the time in Brazil.

The OK gesture (thumb and finger in a circle), on the other hand, may have obscene connotations in Brazil. Avoid it if you can, people may laugh at you, or be offended (usually if they are drunk). Use thumbs up instead.

A circular movement of the forefinger about the ear means you are crazy!, the same as in English. Stroking your two biggest fingers with your thumb and stating that something costs a long time is a disguised way of saying that something is expensive (same as French) (not in whole country).

Clicking your middle finger with your thumb multiple times means a long time. Joining your thumb and middle finger and snapping your index finger upon them means fast (not in whole country). Stroking your lips with your index finger and snapping it means delicious, grabbing your earlobe with your index and thumb means the same (not in all country). Making a fist with your thumb between the index and middle finger is the sign of good luck (not in whole country). Touching the palm with the thumb and making a circular movement with the hand means I am being robbed! (sometimes meaning that some price is too high) (not in whole country).

The Hush gesture is considered extremely unpolite, just about the same as shouting "shut up!" to someone. An informal way to get someone's attention (similar to a whistle in other cultures) is a hissing sound: "pssiu!" It is not perceived as unpolite, but gets extremely annoying if repeated too often.

Cultural Insight While creating the viral video such gestures should be taken into consideration in order to get the local flavour and better connection with the target audience and not creating any confusion of hurting any sentiments. MEETING ETIQUETTE Men shake hands when greeting one another, while maintaining steady eye contact. Women generally kiss each other, starting with the left and alternating cheeks. Hugging and backslapping are common greetings among Brazilian friends. If a woman wishes to shake hands with a man, she should extend her hand first.

GIFT GIVING ETIQUETTE Orchids are considered a very nice gift, but avoid purple ones. Avoid giving anything purple or black as these are mourning colours. Handkerchiefs are also associated with funerals, so they do not make good gifts. Giving a gift is not required at a first business meeting; instead buy lunch or dinner. Giving a gift is not necessary during a first business meeting. Gifts of knives, scissors, or letter openers are interpreted as the severing of a close bond. Avoid practical gifts, since they may be perceived as too personal. For example, avoid wallets, key chains, ties, sunglasses, jewellery and perfume. Do not give anything that is very expensive. Your generosity will only cause embarrassment or be misinterpreted as a bribe. Gifts are usually opened when received. Cultural Insight While gifting prizes a strict action will be noted that vouchers are only gifted so it would not be misinterpreted as a bribe. As an act of Brazillian gesture, orchids could be gifted. DRESSING ETIQUETTE Brazilians pride themselves on dressing well. The colors of the Brazilian flag are yellow and green. Avoid wearing this combination in any fashion Men should wear conservative, dark coloured business suits. Three-piece suits typically indicate that someone is an executive. Women should wear suits or dresses that are elegant and feminine with good quality accessories. Manicures are expected. Cultural Insight The staff in Crossword will be dressed in a neat and presentable manner, keeping true to the Brazilian culture. BUSINESS NEGOTIATION Expect questions about your company since Brazilians are more comfortable doing business with people and companies they know. Never start into business discussions before your host does. Business meetings normally begin with casual 'chatting' first. Wait for your Brazilian colleagues to raise the business subject. Never rush the relationship- building time. Brazilians take time when negotiating. Do not rush them or appear impatient. Expect a great deal of time to be spent reviewing details. Often the people you negotiate with will not have decision-

making authority. It is advisable to hire a translator if your Portuguese is not fluent. Use local lawyers and accountants for negotiations. Brazilians resent an outside legal presence. Brazilian business is hierarchical. Decisions are made by the highest-ranking person. Brazilians negotiate with people not companies. Do not change your negotiating team or you may have to start over from the beginning. BUSINESS MEETING ETIQUETTE Business appointments are required and can often be scheduled on short notice; however, it is best to make them 2 to 3 weeks in advance. Confirm the meeting in writing. It is not uncommon for appointments to be cancelled or changed at the last minute. In Sao Paulo and Brasilia it is important to arrive on time for meetings. In Rio de Janeiro and other cities it is acceptable to arrive a few minutes late for a meeting.

Do not appear impatient if you are kept waiting. Brazilians see time as something outside their control and the demands of relationships takes precedence over adhering to a strict schedule. Meetings are generally rather informal. Expect to be interrupted while you are speaking or making a presentation. Avoid confrontations. Do not appear frustrated with your Brazilian colleagues. Cultural Insight While we are entering a new country and entering into a tie up with the local cafe, such etiquette should be understood. BUSINESS CARDS Business cards are exchanged during introductions with everyone at a meeting. It is advisable, although not required, to have the other side of your business card translated into Portuguese. Present your business card with the Portuguese side facing the recipient. FESTIVALS Brazil is very famous for its festivals which create global appeal. Brazil has numerous festivals that are celebrated over in so many places but no doubt their most popular festival would be the Carnaval. Although there are festivals taking place all year-round in Brazil, the country's most famous event is Carnaval, beginning at midnight on the Friday before Ash Wednesday and

lasting for five days. It is celebrated all over Brazil and there are more authentic versions than the glitzy tourist site held in Rio. BRAZILIAN LITERATURE Deeply concerned with the development of a Brazilian national identity and culture, Brazilian literature can be divided into two major periods: colonial and national. Comprised of native Indians, white European settlers, and a large black population, mostly brought to Brazil as slave labor, Brazil provides a varied cultural background for its indigenous literature, which often reflects the ethnic background of its writers. Colonized by Portugal in the mid-1500s, the country adopted Portuguese as the language of common discourse, and most colonial literature was composed in this language. Today, Brazilians continue to write in Portuguese, and their works reflect a concern with contemporary Brazilian society, as well as a deep sense of Brazilian history and culture. Brazil has very rich poetry collection. Brazilians have got a few iconic authors like Joaquim Maria Machado de Assis and Paolo Coelho

The Spur of Young Brazilian Authors In this century, the country emerges vibrant new generation of writers, trying to do something very different with Brazilian literature. Theyre still drawing heavily from the Brazilian literary tradition, but at the same time theyre absorbing a series of references from foreign authors and popular culture. So, what you have are texts that are less experimental, with less of a focus on Brazilian cultural issues, but with truly original ideas. There are a few Brazilian classics that are still crucial to new Brazilian authors, such as Clarice Lispector and Guimares Rosa. Machado de Assis maybe our greatest novelist is still mentioned by many of them. The modernists in Brazil left a heritage thats still very important for a number of authors in Rio and So Paulo. But, at the same time that Brazilian authors are deeply influential, theres been a change in the way readers now assimilate foreign fiction. Bolao is definitely one of the strongest references in terms of foreign authors, as well as in Argentinian literature. A few of the budding authors include Martin Amas, Maggie Gee, Jonathan Frazen, Fae Myenne. Cultural Insight

Granta em Portugus has announced the publication of The Best of Young Brazilian Novelists, to be published in Portuguese in July 20 and in English, Autumn 2012. With renowned judges like journalist and literary critic, Manuel da Costa Pinto, whos also the coordinator of Flip (The Paraty Literary Festival), Italo Moriconi is a poet and scholar who has edited an important collection on the best Brazilian short stories of the twentieth century and is the curator of the next Brazilian Book Biennial. Samuel Titan is a translator and literature professor and Cristovo Tezza is one of the most important Brazilian writers today. They elect the top ten upcoming Brazilian authors ( some of the names have been mentioned above , last years winners) . The get to have book launches and reading at Crossword.

BRAZILLIAN MUSIC Although Brazil is the fifth largest country in the world, with a total land mass larger than the U.S., most people are only familiar with two of its musical forms: samba and bossa nova. But there is much, much more than that. Music plays a major role in Brazilian life and Brazils music is as wide as the country itself and as diverse as its people. There are other major genres that have been rooted from their ancient history such as Lundu and Maxixe: has been fused with polka and Choro is a jazz styled music . Other famous gernre which include Choro, Samba, Bossa Nova, Baiao and Forro. Usually their music is very loud and vibrant and thus it is enjoyed with dancing a lot. Music is a way of celebration and something rarely for reclining. But now the Brazillians are also warming up to other forms of music such as the rise of Brazlian rock, punk , electronica and now hip hop and due to westernization influence. They are also growing open western music. Cultural Insight To maintain the calm ambience at Crossword the loud Samba and Bosso Nova music cannot be played but their soothing Choro music will be played and some international music. In the music room there are numerous musicians to give respect to in terms of their numerous genres they are specialized in. Probably the music that seeps later into the evening has a much more vibrant tone such as bosso nova and samba. BRAZILLIAN FOOD

Introduction to Brazilian Food: Every country has its staple diet and Brazil is no different. Food in Brazil revolved around three key things, 1) arroz which is white rice, 2) feijao which are black beans and 3) farinha which is like flour. It is very hard to try and avoid eating these although they do come in different shapes and sizes. These are usually eaten with either red meat, chicken or fish. Restaurants in Brazil: When you are on the move or out an about there are lots of different choices in terms of where to spot for some food in Brazil. A lanchonete is like a snack bar where you can by things like sandwiches, hamburgers, pastries and other ready-made snacks to fill a whole in the stomach. Restaurantes are where you go for sit-down meals. Here you can order anything from quick snacks to buffets to expensive set menus. Pizzarias are obviously where you go to get a pizza, although most also sell pasta. At a charrascarias you can eat all the BBQ meat you want and lots of other food for a fixed price, what would be called an "eat all you can." These are a great option for vegetarians as they usually have decent salad bars. You may come across a serving system called rodizio which are typical in charrascarias whereby the waiter will come round and keep offering you food until you can eat no more. Common Brazilian Food: Although to the untrained eye it may all seem the same, food in Brazil varies from region to region. For example, in the Northern interior there is a heavy Indian influence while in the Northeast it is an African one. The main dish is also region based; in the Amazon fish is the staple while in the south meat, and lots of it, is the norm. Cultural Insight The cafe that will be tied up serves such a food to suit the taste and preferences. There will be also serve of continental food such as pizzas and barbeque as that is a growing preference. During the screening of world movies, food to match the mood shall be served. Example French food will be served during screenings of movies from or based in France to give the feeling of authencity to the audience.

Drinks

In Brazil, carbonated drinks are called refrigerantes (coolers). Fruit juice is called by juice name in Portuguese - Suco. Powder juices can sometimes be called refrescos (refreshers). Along with the regular flavors sold worldwide, Brazil is also notorious for the guaran soft drinks. Guaran is a small fruit found on the Amazon Forest. The most popular guaran soft drink is the Guaran Antarctica, which has also been exported in small numbers to other countries, including the United States. The most famous brand, though, is Coca-Cola and its most famous brands, including the cola drink itself, Sprite, Fanta, Grape Fanta, and also Kuat, which is a guarana-based soft drink made by Coca-Cola. Pepsi is also present. There are also many other smaller brands. Caipirinha would be considered as national drink of Brazil. The most popular drink that is preferred and available would be beer. Enjoyed in various places like the bars streets , plazas , and in every city it is packed with people drinking beer. Beer, a drink that is enjoyed every evening. Some other popular drinks are Caipifruta and Caipirinha Consumer Insight Since we are depriving them of their favourite drink due to our no alcohol policy, Crossword should ensure that the close seconds are always available for the customers. DINING ETIQUETTE Brazilians dress with a flair and judge others on their appearance. Casual dress is more formal than in many other countries. Always dress elegantly and more on the side of over-dressing rather than under-dressing. BRAZILAN DANCES Braziian dances are very erotic, poetic and very vibrant. As it is prevalent among festivals , one of the greatest form of leisure includes just dancing. It usually involves couple dancing and one is never restricted to dancing to a particular partner. PUBLIC HOLIDAYS In Brazil, public holidays may be legislated at the federal, statewide and municipal levels. Most holidays are observed nationwide, but each state and city may have its own holidays as well.

SUPERSTITIONS IN BRAZIL A bird in the house is a sign of a death Never take a broom along when you move. Throw it out and buy a new one. If the first butterfly you see in the year is white, you will have good luck all year. If a black cat walks towards you, it brings good fortune, but if it walks away, it takes the good luck with it. To kill a cat brings seven years of bad luck Its bad luck to leave a house through a different door than the one used to come into it. A horseshoe brings good luck If a friend gives you a knife, you should give him a coin (metal), or your friendship will soon be broken. Walking under a ladder has long been regarded a bad luck If you broke a mirror, you would break your future. Many Brazilians dress in white on Fridays

Consumer insight Encouraging superstitions is largely considered a negative trait. Nevertheless it could always be incorporated to create a positive atmosphere. For example during the Brazilian New Year incorporating the ambience with white butterfly themes are what makes sense. The idea of keeping the staff wearing white shirts are also in the sense of maintaining it as the idea of a positive ambience. BRAZIL RELIGION Brazil is said to be the largest Roman Catholic country in the world, but the truth is that there are all varieties of religious beliefs and practices to be found in the country. Brazil was officially Catholic for four centuries, from the 1500's until the fall of the Portuguse Empire, in 1889. The Brazilian Constitution of 1889 guaranteed religious freedom and a wide range of religions have since been practiced freely. Nevertheless, according to the CNBB (National Conference of Brazilian Bishops), in 1996 about 80% of the population declared themselves Roman Catholics. Many Brazilians are baptized and married in the Catholic Church, however, they don't attend

Sunday Mass very often.

VALUE SYSTEM Uncertainty avoidance ranks highest which indicates a high concern for rules, regulations, controls and issues with career security typically, a society that does not readily accept change and is risk adverse. A large power distance indicates that inequalities of power and wealth have been allowed to grow with Brazilian society. High long-term orientation ranking signifies Brazil has respect for tradition and supports a strong work ethic where long term rewards are expected as a result of todays work. Consumer Insight Be prepared to commit long term resources (both in time and money) toward establishing strong relationships in Brazil. This is the key to business success ATTITUDES AND PERSONALITY Friendship and hospitality are highly praised traits in the Brazilian society. To people they have met, or at least they know the name, Brazilians are usually very open, friendly and sometimes quite generous. Once introduced, until getting a good reason not to, a typical Brazilian may treat you as trustfully as he would treat a best friend. This may have an agreeable impact, but it also means that outsiders not always get the same special treatment as locals. Nevertheless,

Brazilians are reputedly one of the most hospitable people in the world and foreigners are usually treated with respect and often with true admiration. LEISURE( NATURE OF GOING OUT) In general, Brazilians are a fun-loving people. While attitude in the South may be somewhat colder and more reserved, from Rio upwards people usually boast a captivating attitude towards life and truly enjoy having a good time. Some may even tell you that beer, football, samba and barbecue is all they could crave for. Brazilians are always up for doing something new. They love to just hang out with each other, and will often stay up late into the night with groups of friends, just talking and having fun-even if they have to be at work the next day. Brazilians live to party. Whether it's at the beach, a barbecue at home with the family or a quick beer at a caf on the street, the meaning of life is clearly to socialize as much as possible. If they run short of gossip (and they rarely do) there's always football (soccer) and the telenovelas to chat about. Regardless of the poverty and suffering in Brazil you'll never be short of smiles in the street. No one knows how to make the most of the beach as Brazilians. The beach in Brazil is simultaneously a social scene, a place to show off one's body and find inner peace. Most Brazilians living near the beach will hit the sands at least once a fortnight and they transform it into a whole social event. Brazilians spend the day on the beach drinking beer, eating nuts and melon and talking about football (soccer) or the latest telenovela. It's one of the most democratic places as apart from the designer haircuts there are precious few clues as to the wealth of the individual. No one can own the sands and so they're a free space for everyone in Brazil - something quite rare in a country that suffers from the worst distribution of wealth in the world. EATING OUT Meals in Brazil: Breakfast, known as cafe is usually eaten between 6 and 8.30 a.m. The food at a typical Brazilian hotel breakfast will include coffee, juice, bread, cheese, cereal, eggs and fruit. Lunch is the main meal of the day in Brazil and is usually eaten between 11.30 a.m. and 1.30 p.m. Dinner (jantar) is very much like lunch in terms of the food eaten and can take place anytime from 7 p.m. onwards. If you are visiting any of the big cities in Brazil, like Rio or Sao Paulo, you will notice most people don't bother with dinner until 10 p.m.

Midday the normal time for the main meal. A light meal is common at night, unless entertaining formally American coffee is a mere shadow of Brazilian coffee. Expect to be served small cups of very strong coffee. In Brazil, restaurant entertainment prevails versus at home. In Brazil it is considered rude to eat a sandwich with one's bare hands, people hold their sandwiches with a napkin, or as is often the case, if the sandwich comes in a small paper bag/wrapper, they will hold it with the bag. It is also considered rude to eat pizza using one's hands, typically pizza is eaten using a knife and fork. After a meal, if you use a toothpick, it is polite to use your free hand to cover your mouth - it is considered rude to allow your toothpicking to be seen. When in a restaurant, the tip is often included in the bill, but when not, tipping rules are generally the same as in the U.S. - 10% for bad service, 15% for good and 20% for excellent. LIFESTYLE Despite regional and social class variations, the Brazilian way of life has common traits that distinguish it from the customary ways of dealing with people and situations in North America and Europe and even in other Latin American countries. Its uniqueness seems to result from the peculiar blend of Portuguese, African, and Amerindian cultural influences in a setting in which central authority attempted, without great success, to exploit the people and resources and to enforce religious norms. Under these circumstances, it was preferable to appear to obey than actually to obey.

ADVERTISING NORMS The first regulations on Advertising in Brazil were enacted in the 1960s, such as Law No. 4.680 of June 1965 and Decree No. 57.690 of February 1966. At that time, Brazil was under a dictatorship that harshly censured advertising. Thus, the Government tried to approve in Congress a bill of law requiring prior government approval of any advertisement before its dissemination in the media. In view of this public control, the Brazilian advertising community was encouraged to create self-regulating rules. So, in 1978, the 3rd Brazilian Advertising Congress was held, with the participation of national advertising agencies, advertisers, the mass media. The result was the unanimous approval and enactment of the so-called Brazilian Advertising Self-Regulation Code. The Code was the result of a comprehensive, long study conducted by a group of broadcasters who researched ethics in advertising in Brazil and abroad.

The main purpose of the advertising self-regulation study was to find an alternative between two extremes: (i) the total lack of regulation, which allowed disordered practice in detriment of fair competition and truthful allegations to consumers, and (ii) the total control of the regulatory function by the Government. The concept of advertising self-regulation is based on the awareness of a self-discipline comprising the following basic issues: (i) establishment of ethic rules for the advertising industry; (ii) establishment of a system of dispute resolution procedures; and (iii) assurance of a fast, prompt and objective solution for the disputes. The advertising self-regulation ideal was approved and enforced by more and more followers in subsequent years, as it and that showed growing advantages to the theory and the practice of advertising in Brazil. Apart from the Self-Regulation Code, it should be noted that advertising is also regulated on a Federal basis, through the Consumer Protection Law (Law No. 8,078/90), the Industrial Property Law (Law No. 9.279, of May, 1996), and the Copyright Law (Law No. 9.610 of February, 1998).

ADVETISING POLICIES Not only are the general ethical rules applicable to advertising mentioned in the Code, but also specific principles to be observed in national advertising, such as: (i) Respect Advertisements shall not encourage nor stimulate any kind of offense or racial, social, political, religious or national discrimination, respecting the dignity of human being, privacy, social interest, national institutions and symbols, authorities and family. (ii) Decency The advertisement should not contain statements nor visual or audio presentations that might be offensive to the decency standards of the audience it intends to reach. (iii) Honesty The advertisement should not exploit the consumers credulity, lack of knowledge or inexperience. (iv) Fear, Superstition, Violence The advertisement should not cause fear without a relevant social reason, exploit any type of superstition or contain anything that might lead to violence. (v) Truthful Presentation The advertisement should make a truthful presentation of the product and/or service that is being offered. There are some aspects that should be respected, as follows:

Due description of the product and/or service; Assertions: the advertisement may not mislead the consumer about the product and/or service that is being advertised; Value, Price, Conditions: the advertisement shall clearly state the value of the product, avoiding unrealistic or exaggerated comparisons with other products or prices, down payments, instalments, credit information, fees or expenses, among others; Appropriate Use of Claims: Expressions such as "directly from the manufacturer", "wholesale price", "no down payment" and other similar expressions cannot mislead the consumers; avoid slang and foreign expressions; which does not have an identifiable, responsible, reliable source; proved information that is clearly expressed;

Truthful Use of the Word "Free";

Nomenclature and Language: The advertisement shall use proper grammar and Survey and Statistics: The advertisement shall not refer to any survey or statistic Technical Information: The advertisement shall only use pertinent, defendable, duly Testimonial: the advertisement shall only show personalized, genuine testimonies; Advertising Identification: The advertisement shall be clearly identifiable as such The advertiser shall always be clearly named. Comparative advertising is acceptable, provided it conforms to the following limits: its primary purpose shall be the clarification or protection of the consumer; its basic principle shall be the objectiveness of the comparison; the purported or implemented comparison shall be capable of being supported by evidence; there shall be no confusion between the product and/or service advertised and the competitors brands; there shall be no unfair competition, denigration of a product and/or service or a competitors image; and whenever the comparison is made between products of different prices, this shall be clearly informed in the advertisement. The advertisement is disapproved if it shows disregard for safety, stimulates the dangerous (vi) Comparative Advertising

(vii) Safety and Accidents

use of the product offered, fails to mention special care to prevent accidents or to mention third-party liability when necessary, or fails to specify special care in the use of the product by children, elderly, or ill persons. The use of images or speeches of living persons, without their prior, express consent, disrespect to religious belief or to the dignity of the human being and family, and the lack of respect for private property and its limits is forbidden. Any advertisement that directly or indirectly stimulates air, water, forest pollution and the pollution of other natural resources and urban environment, the depredation of fauna, flora and other natural resources, visual pollution of forests and cities, sound pollution, and waste of natural resources is strictly prohibited. Advertisement directed to children and teenagers shall always pay special attention to the psychological aspects of the target audience, respecting their naivety, credulity, and inexperience. Besides, it should not morally offend minors, or induce them to socially reprehensible behavior. Overall, the advertisement shall always have safety as its main concern. All advertising activities shall respect copyrights and associated rights involved therein. The advertisement shall not use background music, clips or parts of songs of Brazilian or foreign authors without respecting their copyrights. Creativity and originality are protected. The advertisement shall not violate the marks, appeals, concepts and rights of third parties, even those used outside Brazil.

viii) Protection of Privacy

(ix) Pollution and Ecology

(x) Children and Teenagers

(xi) Copyright and Plagiarism

SAVING AND SPENDING HABITS

Brazilians generally have no financial reserves, they are not savers, as we Dutch like to be called. This means that in times of economic hardship and unemployment, the costs are adjusted to lower incomes. The purchase of durable goods is then put in the figurative ice. January and February are the most expensive for Brazilians months. In these months the IPTU (property tax) and IPVA (car tax) are paid schooling parents going deep into the unfilled need for their schoolage children (entry fees, uniforms, books and writing materials).