PORTUGAL

Official name Portuguese Republic

Capital Lisbon
Area 92,345 sq km
35,655 sq mi
Population 10,676,910 (2008 estimate)

The name Portugal is derived from Portus Cale, a former Roman settlement at the
mouth of the Douro River.

NATURAL RESOURCES

Portugal is rich in mineral resources, a variety of which are extracted, processed, and
exported. Much of this mineral wealth was not commercially exploited until after
World War II (1939-1945). Among the most important mineral resources are copper,
gold, iron ore, kaolin, marble, halite (rock salt), tin, uranium, and Wolframite, which is
a source of tungsten. Portugal also has abundant waterpower in its rivers and
dammed lakes (called barragems), which the nation is continuing to develop.
However, Portugal lacks significant fossil fuel resources and is heavily dependent on
imports to meet its energy needs.

Forests cover 41 percent of Portugals land area, and many areas, especially in the
mountains, are well suited to forestry. However, Portugal is not well endowed with
agricultural resources. Portuguese soils tend to be sandy and acidic and are generally
volcanic in origin. An exception is the loamy and fertile alluvial soil of the lower Tajo
valley.

Lisbon (population, 2003 estimate, 1,962,000), the capital and largest city, is the
leading administrative and services center of Portugal. It is also the nations principal
port, a crossroads of road and rail routes, an international air hub, and home to many
industries. The citys rich architecture, numerous museums, and famously pleasant
weather attract visitors from around the world.

RELIGION

Portugal is a Roman Catholic country by history and tradition. Today, about 91

percent of the population is Catholic. The constitution guarantees freedom of
religion, however, and the Catholic Church receives no direct financial support from
the state. Church attendance has declined in recent decades, especially in urban
areas and in the south, but Catholicism remains central to Portuguese life, especially
in rural interior areas. Portugal has many local saints who are celebrated in popular
festivals, and annual pilgrimages are well attended. The village of Ftima, where the
Virgin Mary is reported to have appeared to three children in 1917, remains a popular
pilgrimage site, attracting both Portuguese and large numbers of Spaniards.

About 1 percent of the Portuguese population is Protestant. There are also small
numbers of Jews (see Judaism) and Muslims (see Islam) in Portugal. Jewish and
Muslim populations have remained small since the late 15th century, when the
Inquisition in Portugal forced them to convert or leave the country.

LANGUAGE

The official language of the country is Portuguese. In recent years English has
replaced French as the most common second language taught in Portuguese schools.

A Romance language, Portuguese is derived from Latin, as is Spanish, which it

resembles in the written form. Portuguese contains Arabic and Germanic words as
well as some words from the languages of Asian groups with whom Portuguese
explorers and traders came into contact. Today, Portuguese is spoken by about 200
million people worldwide, making it one of the worlds most widely spoken
languages.

EDUCATION

Elementary education is free and compulsory between the ages of 6 and 14.
Secondary education is voluntary for students who have reached the age of 15, and it
lasts for three years. Students may pursue two types of secondary education: general
or vocational. Courses of study are developed by the ministry of education.

Portugals system of higher education includes universities, which offer

undergraduate and graduate degrees, and regional polytechnic schools, which offer
degrees in technical subjects, management, education, and fine arts. The oldest
universities in Portugal are the University of Coimbra, now in Coimbra, and the
University of Lisbon, in Lisbon; both were founded in the 13th century in Lisbon.
Other large universities include the University of Porto and the Technical University
of Lisbon.

Since the mid-1980s Portugal has made significant strides in reducing adult illiteracy,
which remains high compared to most European countries. This has been
accomplished mainly through government programs for adult education and through
the expansion of school facilities. Today, 94.1 percent of the Portuguese population
aged 15 or older is defined as literate.

WAY OF LIFE
Portugals way of life is rapidly changing. The growth of industry and the expansion
of the service sector have led many Portuguese to move from rural areas to cities in
search of employment, especially in Lisbon and Porto. However, many Portuguese
continue to live in small towns and villages where traditional fishing and farming
methods are still practiced. In rural areas daily life centers on the home and family,
and multiple generations of a family often share the same dwelling.

The influence of Roman Catholicism remains strong in Portugal. Religious festivals

and processions are among the main diversions for rural communities, along with
regional fairs and local feasts. Romarias (pilgrimages to local shrines) are a regular
feature of weekend recreation, and they often include an atmosphere of celebration.

The most important meals in Portugal are lunch and dinner, which traditionally
feature a variety of dishes consumed in a leisurely manner. Meals frequently include
fish, poultry, pork, or beef, in addition to hearty portions of rice and potatoes. Meat
is often served with piri-piri, a hot chili sauce. An especially popular dish is bacalhau, a
form of dried, salted codfish. Charcoal-grilled sardines (sardinhas assados) and
chicken (frango assado) are also popular, as are many kinds of sausage. Olive oil and
vinegar are used in many dishes, and wine commonly accompanies meals.

The most popular spectator sport in Portugal is soccer (futebol). Portugal shares with
Spain a fondness for bullfighting, a sport that is especially popular in the Ribatejo
region, where bulls are raised. In Portugal, the bull is not killed in front of spectators,
as it is in Spain, but subdued by a group of men on foot and led from the ring. Other
popular sports include basketball, handball, and roller hockey. Portugals long
coastline and sandy beaches attract many beachgoers.

ECONOMIC SECTORS

Agriculture

Agriculture, including forestry and fishing, engages 13 percent of the working

population and accounts for 3 percent of GDP. Farms range in size from tiny holdings
in northern Portugal to huge estates in the south, where wheat is the main crop.
Tomatoes, corn, sugar beets, oats, barley, rice, and potatoes are grown in irrigated
areas. Groves of olive, orange, apple, and pear trees are widely cultivated. Many
varieties of grapes, used mainly for wine, thrive in Portugals soils. The most
important exported wines are port, produced in the region around Porto, from which
the wine got its name, and Madeira, from the Madeira Islands. Sheep, goats, hogs,
fowl, and cattle, including a special breed of black bulls for bullfighting, are raised.

Forestry and Fishing

About 40 percent of Portugal is wooded, and the countrys forests provide timber
(see Forestry), chestnuts, and more than half the worlds raw cork (made from the
bark of the cork oak). Pine forests yield resin and turpentine. The timber harvest in
2006 amounted to 10.8 million cu m (382 million cu ft), making Portugal one of
western Europes leading producers of pulp and paper products.

Commercial fishing is in decline but remains important to the Portuguese economy.

Pilchards (sardines), caught along the coast, are the leading catch, followed by
mackerel, Atlantic redfish, octopus, cod, and halibut. Aquaculture is of growing
importance in Portugal. Lisbon, Setbal, Matosinhos, and Portimao are the main
fishing ports and fish-processing centers.

Mining

Portugal has commercially important deposits of tin and copper and one of the
worlds major reserves of wolframite, from which tungsten is derived. Mineral
production in Portugal in 2004 included 96,000 metric tons of copper and 500 metric
tons of tin. Also extracted were smaller quantities of kaolin, silver, uranium, and zinc.

Manufacturing

Manufacturing is of major importance to the economy of Portugal, employing (with

construction and mining) 32 percent of the labor force and contributing 25 percent to
GDP. Manufactures include processed food and beverages; textiles, clothing, and
footwear; machinery and automobiles; chemicals and pharmaceuticals; lumber, cork,
and glass; refined petroleum; building materials; and electronic goods. Shipbuilding,
once a major economic activity in Portugal, is in decline, but ship repair remains an
important source of employment in some coastal areas. Products of cottage
industries, such as linen and lace, pottery, and colorful ceramic tiles, called azulejos,
are world famous.

Construction

Much of Portugals recent economic growth has centered on the construction

industry. Especially noteworthy are major public works projects, including the 1998
Worlds Fair site in Lisbon; the Vasco da Gama Bridge over the Tajo; the Alqueva Dam
on the Guadiana, one of the biggest dams in the Iberian Peninsula; and the
construction of new housing complexes and transportation infrastructure.

Currency and Foreign Trade

The monetary unit of Portugal is the single currency of the European Union (EU), the
euro. Portugals former national currency, the escudo, ceased to be legal tender in
2002.

In 2003 Portuguese imports totaled $47.1 billion and exports $31.8 billion. Principal
imports include fossil fuels, machinery and transportation equipment, chemicals, and
food and livestock. Principal exports include machinery, automobiles, clothing and
footwear, textile yarns and fabrics, and wood, cork, and paper products. Leading
purchasers of exports are Germany, Spain, France, the United Kingdom, Belgium,
Italy, and the Netherlands. Chief sources for imports are Spain, Germany, France,
Italy, the United Kingdom, the Netherlands, and Belgium. Foreign exchange receipts
from tourism, amounting to $8.3 billion in 2006, help compensate for the generally
large trade deficit.

Services and Tourism

Services employed 55 percent of the Portuguese labor force and produced 72
percent of Portugals GDP. The most important services include retailing,
telecommunications, financial services, and tourism. Portugals rich cultural heritage
and hospitable climate draw millions of visitors annually. The majority of Portugals
tourists come from Spain, with most of the remaining visitors arriving from the
United Kingdom, Germany, and France. The main tourist destinations include the
southern region of Algarve, Lisbon, and the Madeira Islands.

INFRASTRUCTURE

Energy

Portugal is heavily dependent on external energy resources, particularly petroleum

and natural gas imports. Portugal imports most of its fossil fuels from Spain and
northern Africa.

Portugal produced 44.3 billion kilowatt-hours of electricity in 2003. Some 35 percent

of Portugals electricity was generated by hydroelectric facilities (see Waterpower);
most of the rest came from thermal plants fueled by imported fossil fuels. In 2004
Portugal opened a hydroelectric plant at the giant Alqueva dam project on the
powerful Guadiana River in southern Portugal, the first project of its kind in the
underdeveloped Alentejo region.

Transportation

An inadequate transportation network long hindered Portugals internal economic

development. In recent years, aided by EU development funds, Portugal has invested
heavily in its rail and road networks. Today, Portugal has 78,470 km (48,759 mi) of
roads as well as 429 passenger cars for every 1,000 inhabitants. The railroad system,
which is partly electrified, has a total length of 2,839 km (1,764 mi). Most of the tracks
are wide gauge to accommodate shipments from Spain.

The merchant marine comprises 347 vessels. Major seaports include Lisbon, Porto de
Leixes, Setbal, and Sines on the mainland; Horta on the Azores; and Funchal in the
Madeira Islands. Transportes Areos Portugueses (TAP, or Air Portugal), the national
airline, provides domestic and international service. A number of foreign airlines also
have scheduled stops at international airports in Lisbon and Porto. Faro international
airport accommodates scheduled and chartered flights.

Communications

The public television broadcaster RDP, which held a monopoly over the television
airwaves until 1992, operates two public television channels. The state-owned RDP
operates three national public radio channels. Today, however, commercial television
and radio broadcasters attract far larger audiences than their public counterparts.
Radio Ranascenca is a popular radio network operated by the Roman Catholic
Church. Important daily newspapers include Diario de Noticias, Correio da Manha,
Publico, and Jornal de Noticias.
PORTUGUESE SOCIETY AND CULTURE

The Family

The family is the foundation of the social structure and forms the basis of
stability.
The extended family is quite close.
The individual derives a social network and assistance from the family.
Loyalty to the family comes before other social relationships, even business.
Nepotism is considered a good thing, since it implies that employing people
one knows and trusts is of primary importance.

Formality

Portuguese are traditional and conservative.

They are a people who retain a sense of formality when dealing with each
other, which is displayed in the form of extreme politeness.

Appearances Matter

In Portuguese society appearance is very important, especially in the cities.

People are fashion conscious and believe that clothes indicate social standing
and success.
They take great pride in wearing good fabrics and clothes of the best standard
they can afford.

Hierarchy

Portugal is a culture that respects hierarchy.

Society and business are highly stratified and vertically structured.
Both the Catholic Church and the family structure emphasize hierarchical
relationships.
People respect authority and look to those above them for guidance and
decision-making.
Rank is important, and those senior to you in rank must always be treated
with respect.
This need to know who is in charge leads to an authoritarian approach to
decision- making and problem solving.
In business, power and authority generally reside with one person who makes
decisions with little concern about consensus building with their subordinates.
ETIQUETTE AND CUSTOMS IN PORTUGAL

Meeting & Greeting

Initial greetings are reserved, yet polite and gracious.

The handshake accompanied by direct eye contact and the appropriate
greeting for the time of day.
Once a personal relationship has developed, greetings become more
personal: men may greet each other with a hug and a handshake and women
kiss each other twice on the cheek starting with the right.

Titles

The proper form of address is the honorific title 'senhor' and 'senhora' with
the surname.
Anyone with a university degree is referred to with the honorific title, plus
'doutour' or 'doutoura' ('doctor') with or without their surname.
Wait until invited before moving to a first-name basis.
Use the formal rather than the informal case until your Portuguese friend
suggests otherwise.

Gift Giving Etiquette

If you are invited to a Portuguese home for dinner, bring flowers, good quality
chocolates or candy to the hostess.
Do not bring wine unless you know which wines your hosts prefer.
Do not give 13 flowers. The number is considered unlucky.
Do not give lilies or chrysanthemums since they are used at funerals.
Do not give red flowers since red is the symbol of the revolution.
Gifts are usually opened when received.

Dining Etiquette

If invited to a dinner arrive no more than 15 minutes after the stipulated time.
You may arrive between 30 minutes and one hour later than the stipulated
time when invited to a party or other large social gathering.
Dress conservatively. There is little difference between business and social
attire.
Do not discuss business in social situations.
If you did not bring a gift to the hostess, send flowers the next day.
Table manners are formal.

Remain standing until invited to sit down. You may be shown to a particular
seat.
Table manners are Continental -- the fork is held in the left hand and the knife
in the right while eating.
Do not begin eating until the hostess says "bom apetite".
Do not rest your elbows on the table, although your hands should be visible at
all times.
Most food is eaten with utensils, including fruit and cheese.
Keep your napkin to the left of your plate while eating. Do not place the
napkin in your lap. When you have finished eating, move your napkin to the
right of your plate.
If you have not finished eating, cross your knife and fork on your plate with
the fork over the knife.
Leave some food on your plate when you have finished eating.
Indicate you have finished eating by laying your knife and fork parallel on your
plate, tines facing up, with the handles facing to the right.

BUSINESS ETUQUETTE AND PROTOCOL

Building Relationships & Communication

The Portuguese prefers to do business with those they feel comfortable with,
which means those that they know they can trust.
Therefore, it is advisable to have a mutual contact provide the initial
introduction.
Expect to invest a great deal of time developing the relationship.
The Portuguese prefers face-to-face meetings rather than written or
telephonic communication, which are seen as too impersonal.
Relationships are built by people, not companies.
If you change representatives or people on a negotiating team once
negotiations have started, the relationship-building process will have to begin
again.
It is important that you treat business colleagues with respect and not do
anything to embarrass them.
Communication is formal and relies on strict rules of protocol.
 If your Portuguese business colleagues have questions or want clarification
during a presentation, they will wait until you have finished speaking and not
interrupt.
Although honestly, the Portuguese does not volunteer information unless
solicited, especially if remaining silent is in their best interest.
Although the Portuguese are not emotive speakers and do not use hand
gestures, they may be demonstrated when greeting friends If you tend to use
hand gestures while speaking, you may wish to moderate your behavior since
it may incorrectly be viewed as overtly demonstrative.
Portugal is a hierarchical culture that respects age and position.
Defer to those in senior positions and maintain a sense of formality in written
communication.
Do not be concerned if your Portuguese colleagues fail to follow through on
promises.
They have a more relaxed attitude towards time and do not see deadlines as
crucial as people from many other cultures do.
They do not appreciate direct criticism, even if you consider it to be justified

Business Meeting Etiquette

Appointments are mandatory and should be made 1 to 2 weeks in advance.

Reconfirm the meeting a few days in advance.
Initial correspondence should be written in Portuguese.
Since most Portuguese take vacation during August, it is not an ideal time to
try to schedule meetings. It is also best not to plan meetings during the week
between Christmas and New Year.
You should arrive on time for meetings.
In many circles, 5 minutes late is considered on time.
Punctuality displays respect for the person you are meeting. If you are kept
waiting, it is important that you not appear irritated.
People from the north are generally more punctual than those in the south.
A fair amount of getting-to-know-you conversation may take place before the
business conversation begins.
Agendas serve as starting points for discussions; they do not serve as
schedules.
Presentations should be well thought-out, thorough, and backed up with
charts and figures.
Decisions are not reached at meetings.
 Maintain eye contact when speaking.
Meetings may be interrupted.
Do not remove your jacket unless your business associates to do so.

Negotiating

Portuguese put great importance on the character of the person with whom
they do business, so they will take time to get to know you.
Wait for your Portuguese colleagues to bring up business. Never rush the
relationship-building process.
Portuguese are very thorough and detail-oriented.
Portuguese prefers to do business for the long-term, although at times they
focus on short-term gains.
Business is conducted slowly. You must not appear impatient.
Have printed material available in both English and Portuguese.
Do not use high-pressure sales tactics. Portuguese is offended by aggressive
behaviour.
Portuguese business is hierarchical. The highest-ranking person makes
decisions.
Portuguese negotiates with people - not companies. Do not change your
negotiating team or you may have to start over from the beginning.
Contracts are respected.