The role of distance on international commerce: the impact on Sino-Brazilian beef trade

Abstract

PurposeThe purpose of this paper is to identify Brazilian and Chinese cultural, managerial and negotiation factors that can influence the beef trade between the two countries.Design/methodology/approachFirst, a matrix based on reliable secondary sources was established created upon indicators of economic, financial, policy, administrative, cultural, demographic, knowledge, global connectedness and geographic distance between the two countries. This was combined with primary data from interviews conducted with two key stakeholders of the supply chain, namely, the Brazilian agricultural attaché to China, and the director of Apex-Brasil. The results were analysed in a qualitative descriptive manner.FindingsCultural and political distances between Brazil and China are the most profound origins of challenges in negotiations on both the private and public level.Research limitations/implicationsThe interviews were limited in number and to the Brazilian portion of agents involved in the beef trade (diplomats and APEX representative). The low number of interviews might be a limiting factor of the investigation. However, the interviewees’ key position in the supply chain and data triangulation with secondary sources equilibrates the results’ trustworthiness.Social implicationsChina and Brazil are becoming important players in the international market. Brazil has become a leader in the production and export of agricultural commodities. Brazil is the first producer or the second exporter of coffee, soybean, ethanol, poultry, sugar and beef. In 2009, China became Brazil’s top partner in trade (Xi, 2016). In 2015, Brazil exported $35.6bn to and imported $30.7bn from China. In the foreseeable future China will continue to be the most dynamic economy worldwide. This trade dynamic can be a source of opportunities for Chinese and Brazilian enterprises.Originality/valueInformation collected and conclusions drawn from the research are unique in scientific and management literature related to this specific topic, and can be of great value for stakeholders, traders and diplomats in the Sino-Brazilian trade.