Business in Peru
Long Term Orientation
The last few decades have seen drastic and tumultuous economic turns. In the late 20th century, inflation was at 12,000% and the currency was reintroduced three times to offset these effects. Currently, Peru has an annual inflation rate between 3-4%, but there are still generations who remember the times when your money could change in value overnight.
Consequently, there's a lesser focus on the long term future as experiences have shown events can change in the blink of an eye.
An interesting juxtaposition to this, however, is the influence of Western markets in the South American cultures. There is a progressive move towards increased Westernization, especially among the younger population, and away from more traditional values. As the younger generations forget more and more of the risky environment of the past, there may be a greater shift towards a long term focus. It also depends on how the Peruvian economy will continue to develop over the next few years. If inflation and growth remain stable, the long term outlook may also become more stable and welcoming. If, however, Peru suffers more setbacks and extreme inflation levels, the population may continue to live by the day with the knowledge that the future is never certain.
Hofstede Comparison
** Currently, Long Term Orientation for Peru in the Hofstede framework is unavailable, the score of 0 does not mean that Peru actually scores 0 in this category.
To Shake Hands or Not to Shake Hands?
We've all had the moment of truth between going for a handshake and then hanging back uncertaintly, so in Peru:
Men
Greet each other with handshakes
Women
A kiss on the cheek
Men and Women
Kiss on the cheek
Gestures
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Personal space is defined less prominently
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It is normal for men to walk arm in arm with other men and women to walk arm in arm with other women.
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It is appropriate to use demonstrative and expressive body language and gestures with speech
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It is considered rude to use your index finger to call someone over, instead turn your palm downwards and use all fingers in a sweeping motion towards yourself.
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Crossing your legs by resting your ankle on your knee is considered inappropriate. Legs should be crossed at the knee or ankles.
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It is considered a nice gesture to print your business cards in both Spanish and English (double sided).
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Peruvians often point with their lips rather than their fingers
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Making a “hang-ten” sign with your thumb and pinky extended means “lets go grab a beer.”
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Lifting the arm up, pointing the index finger down, and waiting it in a circle means, “I’ll be right back.”
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Slapping the bottom of your elbow with the other hand in an open palm means that someone is cheap.
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The American “O.K.” sign is considered inappropriate in Peru, but a thumbs up sign is a sign of approval or congratulations.
How important/ common is it to use gestures to describe speech?