Final Report INECO - Team 5

Global Marketing Strategies
Internationalization Models
06/02/2024
FINAL REPORT
Team 5:
Pablo Corral
Alfonso Escagedo
Diego García
Eyoab Habtamu
Xiaoni Uría García
1. MISSION, VISION AND CORE VALUES

2. MARKET ATTRACTIVENESS INDICATORS
2.1 GDP Growth Rate
2.2 Entry Barriers
2.3 Government Regulations
2.4 Political Safety
2.5 Economic Stability
2.6 Currency Exchange Rates
2.7 Potential Plan Related to Infrastructure
3. COMPETITIVE POSITION INDICATORS
3.1 Recognition and perception of the company
3.2 The quality and skill level of the workforce
3.4 Company's experience in the country
4. SELECTION OF THE COUNTRIES
4.1 Brazil
4.2 Canada
4.3 China
4.4 Germany
4.5 Mexico
4.6 Saudi Arabia
4.7 Vietnam
5. FOCUS ON MEXICO
5.1 Analysis of Mexico according to GE Matrix
5.2 Why Mexico
5.2.1 Opportunity in Mexico
5.2.2 Challenges of the Mexican market
6. ENTRY MODE
6.1 Strategic Alliance
6.2 Value Proposition
6.2.1 Value Proposition for Grupo México
6.2.2 Value Proposition for CAF
6.3 Advantages and Disadvantages
6. 3.1 Advantages of the Strategic Alliance
6.3.2 Disadvantages of the Strategic Alliance
9. CONCLUSION
10. ANNEXES
10.1 GE Matrix Analysis for the rest of the countries
10.1.1 Canada
10.1.2 Germany
10.1.3 China
10.1.4 Vietnam
10.1.5 Saudi Arabia
1
10.1.6 Brazil
10.2 GE Matrix
10.2.1 GE Matrix Chart
10.2.2 Market Attractiveness Indicators
10.2.3 Competitive Position Indicators
10.2.4 GE Matrix Results
10.3 Return of Investment
10.4 People of Interest: Key Contacts
10.5 Map of Mexico and the consequences of nearshoring
11. BIBLIOGRAPHY
2
1. MISSION, VISION AND CORE VALUES
INECO is an international engineering, consulting, and technological services company with

more than 50 years of experience. The company is based in Spain and is present in more than
30 countries. Within the framework of its international growth strategy, the company aims to
enter new markets. The infrastructure sector offers great potential for the company since it is
a global sector that requires comprehensive and high-quality solutions.
INECO's mission is "To provide comprehensive solutions in engineering, consulting, and
technological services, which contribute to the sustainable development of people and
organizations." This mission is aligned with the company's internalization objective in the
infrastructure sector since the company can offer its comprehensive solutions to clients
around the world.
INECO's vision is "To be a leading company in engineering, consulting, and technological
services, recognized for its excellence and its commitment to society." This vision also aligns
with the internalization of the company in the infrastructure sector, since it can increase its
leadership in the sector and consolidate its commitment to excellence and society.
Among INECO's core values are excellence, commitment to society, collaboration and
innovation. These core values are also aligned with the internalization of the company in the
infrastructure sector, since the company is committed to offering high quality solutions,
contributing to the sustainable development of society, working in collaboration with its
clients and partners, and constantly innovating to offer cutting-edge solutions.
INECO's mission, vision, and core values provide a solid foundation for the internalization of
the company in the infrastructure sector. These values are aligned with the company's goal of
offering comprehensive, high-quality, and sustainable solutions to customers around the
world. To achieve this objective, INECO must focus on developing an internalization strategy
that adjusts to its values and objectives, have a team of highly qualified professionals with
experience in the infrastructure sector, adapt to the local conditions of the markets in which
that operates, and offer innovative solutions that meet customer needs.1
Moreover, it is a Spanish engineering and consulting company that works in a wide range of
sectors such as in the transport sector where it builds and operates transport infrastructures,
both passenger and freight, in the urban planning sector where it has experience in the
planning, design, and construction of cities and towns, in the energy sector where it is a
reference and has experience in the design, construction and operation of power generation
plants, both renewable and non-renewable, and in the infrastructure sector where it has
designed, built and operated various civil infrastructures, such as dams, tunnels and coastal
defense works.
However, the railway sector is one of the sectors in which INECO has the greatest experience
and strength. In addition, INECO has participated in some of the most emblematic railway
projects in the world, such as the construction of the Medina-Mecca High-Speed Line in
Saudi Arabia and the Madrid-Barcelona High-Speed Line in Spain. Thanks to this
experience, INECO enjoys competitive advantages in the railway sector that allow it to stand
out in the international market such as international recognition, technology and innovation
and a network of contacts.2
1 (Home | Ineco, n.d.)

2 (INECO, n.d.)
3
Likewise, the railway sector is in a stage of growth as the increasing demand for rail
transport, investment in railway infrastructure and the globalization of the railway sector are
becoming more and more notorious, which increases the demand for engineering and
consulting services. This is why INECO has the capabilities and experience necessary to take
advantage of this opportunity and become a global leader in the railway sector.3
2. MARKET ATTRACTIVENESS INDICATORS
2.1 GDP Growth Rate

One of the key indicators of economic expansion and potential market opportunities.
INECO's interest to grow makes the GDP Growth rate indicator have one of the highest
weights (15%) which makes more focus on countries with high GDP growth rates and
indicates a vibrant and expanding market.
2.2 Entry Barriers

After the first two, it is essential to identify the ease of market entry to know the potential
challenges that INECO may face when entering the new market. Since INECO can assess the
feasibility and challenges of entering a market it has an advantage of using alternatives of
strategies which weights (10%) in the indicator index in our subjective speculation.
2.3 Government Regulations

A thorough understanding of government regulation is needed because of INECO's
commitment to compliance and ethical business practices. By considering government
regulations, Ineco can ensure alignment with local laws and regulations which is why we will
have to give it a higher weight (15%).
2.4 Political Safety

(15%) INECO needs to assess the political stability of potential markets and make informed
decisions. Which in turn helps Ineco with its operations, aligning with its goal of sustainable
and secure expansion.
2.5 Economic Stability

Since economic stability is one of the things that should be in consideration, we gave it a
weight of (15%) on the indicator’s matrix. Through the evaluation of economic stability,
Ineco can acknowledge which countries have strong economic foundations, which in turn
reduces the risk of market volatility. Also enabling it to align its goal with long-term stability
and growth.
3 (Ferroviaria, 2018)
4
2.6 Currency Exchange Rates
To maximize financial performance, currency exchange rate must be one of the key
indicators. in our subjective view weighing (10%). This is because understanding currency
exchange rates is essential to assess potential financial implications and which international
financial strategies to use that align with its goal of maximizing financial performance with
minimized risks that come in association with currency fluctuations.
2.7 Potential Plan Related to Infrastructure

For a company like INECO to expand, it needs a certain level of belief that the government of
each country is thinking of developing a new infrastructure plan. For this reason, we decided
that it would be important to include this indicator in our matrix with a substantial weight of
(20%).
3. COMPETITIVE POSITION INDICATORS
3.1 Recognition and perception of the company

We consider it is important for INECO to know how well-known the company is in the
countries, and thus, how good the brand awareness of the company is in each country. In
addition to that, it is also important to know the level of customer satisfaction as a high
indicator means that they see INECO as a reliable and trustworthy partner. That is why we
decided to give this indicator one of the highest weights with a 30%. Moreover, if INECO has
a strong reputation within its industry, they will see it as a leader and innovator. Also, it
might be helpful to see whether the company faces any potential challenges or opportunities
in terms of market acceptance and customer perception.
3.2 The quality and skill level of the workforce

The company’s workforce is considered one of the most important assets. A skilled and
motivated workforce can help a company to innovate, improve productivity and achieve its
goals. We decided to weigh it as the highest one at 25% as in the consultancy sector, the
workforce directly influences the quality of service and project success. If INECO has a high
quality and skilled workforce, it will mean that the company is reliable to work with.
3.3 Ability to produce goods or services at a lower cost than competitors
A company’s cost structure is a key factor to measure its competitiveness. A lower cost
structure can lead to lower prices for customers and a higher profit margin. With a weight of
20%, If INECO manages to offer service at a lower price than its competitors it will have a
competitive advantage among them as thus, a good reputation for its customers.
3.4 Company's experience in the country

The experience of a company in a country can give it a competitive advantage. We weigh it at
25% since it is relevant for understanding the local market and operational effectiveness but
5
weighted less if the company has a global reach. In the case INECO has a long-established
presence in it, it will mean that it has probably built relationships with customers, suppliers
and government officials.
The McKinsey matrix analysis can help companies identify potential challenges and
opportunities, assess their competitive advantage, and make strategic decisions to increase
their chances of success in the new market. By understanding the market attractiveness and
competitive intensity of different countries, companies can make more informed decisions
about which markets to enter.
4. SELECTION OF THE COUNTRIES
After compiling the list of 20 countries with intentions to increase their infrastructure or
planning to start a related project (Brazil, Canada, China, Mexico, Germany, Saudi Arabia,
Vietnam, India, United States, Portugal, France, Spain, Japan, United Kingdom United
Kingdom, Australia, Russia, Turkey, South Africa, Italy and South Korea). Our focus was on
identifying among them those that demonstrated the most substantial government investment.
After our analysis, we found that these 7 countries were the best fit for these requirements.
(Brazil, Canada, China, Mexico, Germany, Saudi Arabia and Vietnam).
4.1 Brazil
Brazilian president Lula Da Silva announced a plan to spend 1 trillion reais (nearly $200
billion) on infrastructure, energy and transportation over the next four years, part of a larger
effort to boost economic growth and employment in Latin America. Funding is expected to
go towards infrastructure projects including new highways and ports as well as energy
efficiency and urbanization programs in slums. Brazil officials estimate that including private
sector-led initiatives and private-public partnerships, total investments over the next four
years could reach 1.7 trillion reais (around $350 billion). 4
4.2 Canada
The transportation system in Canada is cutting-edge and is distinguished by well-kept road
networks, effective public transportation systems, and sophisticated technological integration.
This facilitates the easy flow of goods and people throughout its cities.
Canada's objective for this macro-project is to create a major rail infrastructure in this
location with a 46-kilometer route to cross Calgary from south to north. The potential for
investment in the development of a new railway route in Calgary is the reason we chose
Canada. Furthermore, the government's support, which aims to invest C$5.5 billion, increases
assurance about the project's viability and success. Spanish businesses that are in the running
for this project include ACS, Acciona and CAF. 5
4 (Jeantet, 2023)
5 (Días et al., 2022)
6
4.3 China
China has put together a five-year transportation infrastructure investment plan that would
continue heavy spending on highways, high-speed rail and airports after a record-setting
2022.
The plan would expand expressways under the central government's purview to 130,000
kilometers by its final year of 2027, up 11% from the end of 2021, adding to what is already
the biggest such network in the world. By comparison, the U.S. had about 98,000 km of
expressways as of 2020, based on data from the Federal Highway Administration.6
4.4 Germany
Germany is our primary focus in mobility because of its sophisticated infrastructure,
dedication to sustainable mobility, robust economy, strategic location within Europe, and
leadership in technology innovation within the transportation industry.
By 2027, Germany plans to invest EUR 40 billion in a significant rail modernization and
digitalization project. A significant portion of this funding, around one-third, will support
Deutsche Bahn for the modernization and expansion of the national railway network.
Up until 2030, station upgrades and corridor modifications are part of this work, which aims
to increase timeliness and accomplish transportation goals. The programme also consists of
extensive rail digitization measures.7
4.5 Mexico
The Ministry of Infrastructure, Communications and Transport (SICT) will direct MX$352
billion (US$19.5 billion) to conclude 541 infrastructure works that account for 8,168km. The
ministry also presented an in-depth analysis on the benefits of all the projects on its watch.
Railway connectivity works include 30 highways, 51 construction projects, modernization of

federal highways, 52 rural and feeder road projects and 405 artisanal labor roads to municipal
capitals. The ministry highlighted that the works would benefit over 47 million people, as
SICT plans on building 10 highways in 2023 alone, for a total investment of MX$55 billion
(US$3 billion) to improve 429 km.
The federal highway construction and modernization program also highlighted that 51 works
are contemplated in 2023 with a total investment of MX$70 billion (US$3.88 billion),
covering 1,138km.8
6 (Writer, 2023)
7 (Pamela, 2023)
8 (Mexico Business, 2023)
7
4.6 Saudi Arabia
Saudi Arabia is pouring billions of dollars into mega projects, massive tourism, and
infrastructure developments to diversify its economy away from oil. Since 2016, the country
has awarded $250 billion in construction contracts and is launching a new airline and airport.
According to Knight Frank, it also plans to build 660,000 homes, 289,000 hotel rooms, 6
million square meters of office space, and 5.3 million square meters of retail space. The
country’s investment spree shows no signs of slowing down. A recent report by McKinsey &
Co. indicates that Saudi Arabia is set to invest more than $175 billion annually on industrial
and mega projects between 2025 and 2028. Spending is projected to peak at $180 billion in
2026 and 2027. 9
4.7 Vietnam
Vietnam has been experiencing urban development with increasing demand for efficient and
modern mobility solutions. Mobility in Vietnam offers opportunities to contribute to the
evolution of the country's infrastructure and meet the emerging needs of its growing
population.
Vietnam intends to invest more than US$70 billion in a high-speed rail network that will
connect the entire country. The proposed plan calls for a double-track network with speeds of
up to 350 km/h, focusing on passengers. The proposal is expected to cost $68.98 billion, with
60% of the track being bridges, 10% underground passages, and 30% standard railway tracks.
10
It should be noted that for the better and more clear understanding of the country of Mexico
and its opportunities, the analysis of the rest of the countries according to the GE Matrix has
been placed in the annexes. Here is a direct link to it.
5. FOCUS ON MEXICO
5.1 Analysis of Mexico according to GE Matrix
5.1.1 Market Attractiveness
5.1.1.1 GDP Growth Rate
For Mexico's economic outlook in 2024, the projections indicate a real GDP growth rate of
around 2.2% to 2.9%. This is an upward revision from previous forecasts, suggesting some
positive momentum. The main drivers of growth are expected to be private spending,
supported by gains in real wages and employment.
9 (Fast Company Middle East, 2023)

10 (Bao Ngoc - Kim Thoa / Tuoi Tre News, 2023)
8
The labor market in Mexico is anticipated to continue its strong performance into 2024,
which will support the wage bill despite some expected deceleration. Investment is also
showing positive signs, particularly driven by public investment and growth in the imported
machinery and equipment component, which could be related to expectations of nearshoring.
However, it is important to note that the GDP growth rate for 2024 is projected to be lower
than that of 2023, attributed to a decrease in external stimulus. Inflation is expected to slow
down, mainly due to a decrease in non-core inflation, with core inflation also showing signs
of a slowdown in the coming months. These forecasts suggest cautious optimism for
Mexico's economy in 2024, with a growth rate that indicates resilience and moderate
expansion amidst global economic challenges. 11
5.1.1.2 Entry Barriers
Mexico presents moderate entry barriers, with challenges primarily in navigating regulatory
and bureaucratic processes. This can be attributed to the complexity of the regulatory
environment, although efforts are being made to improve this aspect. Infrastructure
construction often involves working closely with the government. Establishing strong
relationships with local and governmental authorities is crucial for obtaining contracts and
permits, this presents advantages to local companies. INECO should invest time and effort in
building these relationships.
The locally established companies with experience may have advantages in terms of market
knowledge, local relationships, and understanding specific regulations. Because of this, the
international company should carefully manage its reputation and demonstrate a strong
commitment to corporate social responsibility. Local acceptance and positive perception can
influence the success of winning projects.
5.1.1.3 Government Regulations
In recent years, Mexico has made significant strides in the transportation and mobility
industry, particularly in areas such as infrastructure development and road safety.
General Mobility and Road Safety Law: In 2020, Mexico embarked on the development of a
new General Mobility and Road Safety Law. This legislation was inspired by the principles
of safety, accessibility, efficiency, sustainability, quality, inclusion, and equality in mobility.
This law is expected to define public policies, sector policies, the National System of Road
Safety and Mobility, and criteria for infrastructure, road networks, universal design public
spaces, transportation services, integrated systems, and demand management. It aims to
create basic standards for transit, obtain permits, and support victims in case of accidents.
The government's focus on transportation infrastructure has a significant economic impact,

considering Mexico's status as the second-largest economy in Latin America. These
initiatives and regulations reflect Mexico's commitment to enhancing its transportation and
11 (Staff, 2023)
9
mobility sector through significant infrastructure projects, improved road safety standards,
and strategic regional development.12
5.1.1.4 Political Safety
Mexico's political environment is relatively stable but can be unpredictable, especially

considering the upcoming presidential elections in June of 2024. 13 The outcome of these
elections and the subsequent political developments could influence economic policies and
the business environment. The country also has relatively strong anti-corruption laws, but
enforcement remains a concern, making integrity risks for international businesses an issue to
watch. Even in this situation, Mexico is still an important market due to its size and leading
industries.14
5.1.1.5 Economic Stability
Nearshoring is emerging as a significant driver of Mexico's economy. The relocation of

manufacturing plants to Mexico from other countries, particularly the United States, is
expected to reconfigure the Mexican economy. This includes the arrival of foreign
investment, creation of new and specialized jobs, expansion of manufacturing activities, and
a boost in productivity and R&D. Private investment is recovering rapidly, indicated by a
19% growth in the construction of industrial facilities in the first half of 2023 compared to the
previous year.
The Mexican economy is forecasted to grow by 2.9% in 2024, a slight decrease from the
3.5% growth expected in 2023. The government's expenditure, particularly on capital goods,
is a growth driver. Public spending is likely to increase in 2024 due to the presidential
elections, with a focus on infrastructure projects. The government expects a primary deficit
equivalent to 1.2% of GDP and a fiscal deficit equivalent to 4.9% of GDP in 2024. 15
5.1.1.6 Currency Exchange Rate
The Mexican Peso can be volatile, but this also offers opportunities, especially in export
markets. Currency movements can impact trade and investment flows, making it a crucial
factor for businesses operating in or with Mexico.
In summary, Mexico's economy in 2024 is forecasted to grow steadily, supported by private

consumption and investment. The market is large and dynamic, though entry barriers and
regulatory complexity present challenges. Political risks, particularly surrounding the
presidential elections, and economic stability influenced by external factors are key
considerations. The Mexican Peso's volatility offers both challenges and opportunities in the
context of global trade.16
12 (Bloomberg Línea, 2024)

13 (López et al., 2024)
14 (Bloomberg Línea, 2024)
15 (Amador et al., 2023)
16 (Mexico Economic Outlook, 2023, 2023)
10
5.1.1.7 Potential Plan Related to Infrastructure
Mexico is making major investments in border and transportation infrastructure, especially to

improve economic growth and solve connectivity problems. The strategy aims to enhance
national connectivity and reinforce international trade relations by strategically allocating
resources in crucial areas. This will create a strong economic climate that will position
Mexico for long-term growth and global competitiveness. 17 18
5.1.2 Competitive Position
5.1.2.1 Recognition and perception of the company
INECO has a significant presence in Mexico, through its participation in major projects such
as the Tren Maya. In which the company collaborated with DB Engineering & Consulting
and Renfe, its recognition within the transportation engineering sector was evident. 19 The
main role that INECO developed was based on advice in the process of the material of
railway systems and surrounding materials, as well as the review of the basic engineering and
operational requirements.
5.1.2.2 Quality and skill level of the workforce
Large-scale operations and complex projects in Mexico will require a high level of expertise.
Competent and qualified professionals with the requisite management and technical abilities
will be required for the successful completion of such projects.
5.1.2.3 Ability to produce goods or services at a lower cost than competitors
When it comes to important infrastructure projects, where cost-effectiveness is crucial,

INECO can manage costs effectively and has proven it. The ability of INECO to run its
finances effectively is a key component of its project success.
5.1.2.4 Company’s experience in the country
INECO has demonstrated in-depth knowledge and the ability to adapt to the local context, as
evidenced by prominent projects such as the Tren Maya and the construction and design of
highways and airports. Its successful track record in these initiatives supports its solid
17 (Enriquez, A., 2021b)

18 (Mexico - Transportation Infrastructure Equipment and Services, n.d.)
19 (INECO, 2020)
11
understanding of local dynamics and its ability to address challenges specific to the Mexican
environment.20
5.2 Why Mexico
Nearshoring is a business strategy to relocate part of companies' production and supply

chains to areas closer to their main target market. Mexico is an attractive destination for
nearshoring mainly due to its geographic location, competitive costs and favorable regulation.
Thanks to nearshoring, foreign investment in Mexico could increase from US$36 billion in
2022 to US$87 billion in 2030, rising from 2.5% to 3.8% of GDP. 21
Among Mexico's competitive advantages to position it as a natural candidate to benefit the
most from nearshoring are, on the one hand, the solid production and logistics chains
developed with the United States as a result of NAFTA, since production and shipping
processes are shorter than from other countries in the world, and schedules are similar to
those of the United States, thus facilitating communication between production and suppliers.
On the other hand, the availability of skilled labor, since Mexico is the country with more
trade agreements and treaties in the world, being the largest exporter of manufactured goods
in Latin America and the main commercial supplier of the United States, surpassing China.
There are also certain challenges that the country must overcome for nearshoring in Mexico
to become a reality. These include legal certainty and security for foreign investment, social
problems of security, organized crime, corruption and impunity, development and
modernization of more transportation logistics infrastructure, ports, airports, customs capacity
and clean energy.
It is worth noting that the state of Nuevo Leon is the first manufacturing entity in the country
in GDP, FDI, employment and about to be the first in IMSS wages. Except for Mexico City,
it is far behind the rest of the states in terms of financing.22
Compared to other potential nearshoring countries, such as Brazil, Colombia and Chile,
Mexico has several additional advantages that make it an even more attractive destination. In
addition, Mexico has a strong business culture and a government committed to economic
development. For these reasons, Mexico is likely to remain a leading nearshoring destination
for years to come. The country has the necessary conditions to take full advantage of this
trend and generate a positive impact on its economy.
Here is a direct link of the map showing exactly where companies are planning to establish in
Mexico.
5.2.1 Opportunity in Mexico
In order for México to continue to be a leader in nearshoring, we have identified the

renovation and new construction of both freight and passenger railway as an opportunity for
INECO in Mexico. These projects will increase freight capacity, improve the safety and
efficiency of the system, and promote the use of rail freight, which will reduce greenhouse
gas emissions and other environmental impacts.
20 (INECO, 2021)
21 (Zamarrón, 2023)
22 (Arteaga, 2023)
12
Regarding the improvement of the freight railway network, this will be carried out in
sections. Likewise, bids have already been published for the first sections, specifically for the
construction from Veracruz to Tabasco and the modernization of the Sonora-Sinaloa railroad.
23
However, it is possible that in the future these contracts will be awarded to foreign
companies, as the Mexican government has expressed its interest in attracting foreign
investment in the railroad sector. The Mexican government has indicated that the award of
the bidding process will be based on quality, price and experience criteria. In addition, the
Mexican government has indicated that it wants the winning bidder to be a company that is
committed to safety and sustainability.
As an example of the need for improvement in the freight rail network, we present the
situations of two large multinationals, Tesla and Apple, which are deciding whether to move
their factories to a location closer to the country of origin. On the one hand, Tesla had plans
to open a factory in the state of Nuevo Leon but suspended its plans indefinitely with the
possibility of canceling the construction of the "Gigafactory" due to electricity, water and
transportation problems24. In fact, Tesla sent a letter to the state government to request
progress on infrastructure projects to advance the construction of the plant 25. In fact, it
requested a railway exit, land access, a water treatment plant, an electrical substation, a gas
pipeline and sewage work. On the other hand, and regarding Apple, the Mexican government
is willing to promote the relocation of part of Apple's large production plants in the country.
The Secretary of Economy, Graciela Márquez, emphasized Mexico's industrial capabilities.
In this sense, they seek to reinforce especially the investment in the territory for the relocation
of large factories such as Apple. 26
Following with specific projects, these are the ones which the government has tried to
develop during the last couple of years, but due to the lack of infrastructure companies, these
were not carried out. However, in 2022 the government decided to assign them as study
projects.
23 (Varela et al., 2023)

24 (Vargas, 2023)
25 (Stillman, 2023)
26 (Del Barco, 2020)
13
Source: (Subsecretaría de Infraestructura de México, 2022)
However, the concentration will not be on the five projects, but on two specific ones. First the
Monterrey-San Antonio one which would be the first passenger train crossing borders
between The US and Mexico. And second, the Ciudad México-Querétaro-León one but
focusing only on the first section as it is the most important one. 27
5.2.2 Challenges of the Mexican market
Although Mexico is an attractive country, it also presents certain challenges that INECO will
have to face if it wants to take advantage of the opportunities that the Mexican market offers.
Government Policies and Regulatory Challenges
The current Mexican administration has made several policy choices that have been
unpopular among certain segments of the population, including budget cuts in key areas like
education, healthcare, and infrastructure. These choices and their implications on Mexico's
legislative and regulatory environment could influence INECO's operations, particularly in
areas related to infrastructure development and public sector partnerships. However, in June
of 2024, the elections may have a large impact on this, as the alliance for Mexico candidate
Xochitl Galvez will push for a lot of foreign investments and she will allocate a large budget
for infrastructure projects, according to her presidential campaign.
Over the years, Mexico has seen various infrastructure investment initiatives, such as the
Construction and Modernization Program 2018-2024, which included several billion-dollar
projects. While these initiatives are ambitious and aim to improve the country's infrastructure,
their success heavily depends on private sector financing and the capacity to address the
geographical and social complexities of the regions involved. The upcoming federal elections
in 2024 may also impact the progress and focus of these infrastructure projects.
Geographical Challenges
The Mexican government's plan for transportation infrastructure development places a major
emphasis on the southern states, including Tabasco, Chiapas, and the Yucatán Peninsula
states. This focus is part of a broader initiative to bolster regional development and curb
migration. However, this regional focus might overlook the diverse geographical challenges
present in other parts of the country. The government's strategic infrastructure projects, like
27 (Subsecretaría de Infraestructura de México, 2022)
14
the Maya Train and the Trans-Isthmus Corridor, are concentrated in these areas. The
successful implementation of such large-scale projects requires substantial investment and
careful planning, considering the unique geographical and social characteristics of each
region. 28
Security Challenges
Security remains a significant concern for foreign investors in Mexico. Different regions in
the country present varying levels of risk, with some states comparable to the safest countries
in the world, while others report high levels of violence. The perception of violence and the
threat of it is an important factor to consider. Major security concerns for companies include
cargo transport and supply chain attacks, offenses and threats to employees, physical security
of facilities, and cyber-attacks. Understanding these risks and incorporating local level
information from experts and other operators on the ground is essential for building an
accurate picture of operating conditions. 29
Moreover, attacks on government authorities are a significant issue in Mexico, affecting more
than half of the Mexican states. These attacks include ambushes of police or military patrols,
attacks on government buildings, assassinations of political figures, and kidnappings. The
frequency of these attacks provides insight into the challenges faced by the Mexican
government in maintaining control and combating organized crime. This situation contributes
to a general environment of insecurity, affecting business operations and necessitating robust
security measures. 30
For INECO, these factors imply the need for comprehensive security planning, including risk
assessment and mitigation strategies, to ensure the safety of its personnel and operations in
Mexico. This could involve investments in security infrastructure, collaboration with local
security experts, and continuous monitoring of the security landscape in the regions where it
operates.
6. ENTRY MODE
6.1 Strategic Alliance
Having analyzed the opportunities and, therefore the reasons why INECO should enter
Mexico, it remains to determine the manner of entry. Taking into account all the factors
mentioned above, it has been concluded that the optimal way to enter the market is through
strategic alliances with local companies.
The Mexican market offers a number of attractive opportunities for INECO, including a
growing market and a government committed to infrastructure development. Strategic
alliances with local companies would enable the company to take advantage of these
28 (ReVista, 2021)
29 (FTI Consulting, n.d.)
30 (Mexico - Safety and Security, n.d.)
15
opportunities more quickly and efficiently. In addition, it could benefit greatly from strategic
alliances for the following reasons. First, strategic alliances would give INECO access to
resources and capabilities that it does not currently have, such as technology, an established
distribution network, and even additional financing. Second, through this mode of entry, it
could reduce risks related to uncertainty, local competition, and regulatory challenges. Third,
the company could benefit from improving its competitiveness in the Mexican market by
gaining access to new technology and know-how that would enable it to offer better solutions
to its customers. Fourth, collaboration with local companies could create synergies that
benefit both parties. Specifically, INECO could provide technical expertise and know-how,
while the local company could provide access to an established customer base or knowledge
of distribution channels.
In other words, INECO's experience in Mexico and the existence of its subsidiary in the
country are positive factors, but they are not sufficient to guarantee the company's success in
the Mexican market. Strategic alliances could help the company take advantage of the
opportunities offered by the Mexican market, reduce risks, and improve its competitiveness.
That is why considering that INECO has a subsidiary in Mexico, and therefore already has
experience in the market, it is considered that the best option for entering the Mexican market
is to create a consortium between Grupo Mexico, CAF, and INECO itself.
First, INECO and CAF are leaders in the railway sector, with extensive experience in the
construction and renovation of railway infrastructure. CAF is also a Spanish company that is
also committed to corporate social responsibility and has a sustainability program that
includes environmental, social, and economic goals. Second, Grupo Mexico is a leading
company in the mining and metallurgical sector, with the financial and technical resources
necessary to carry out a large-scale renovation project. In addition, Grupo Mexico has strong
relationships with the Mexican government and the private sector. More specifically, Grupo
Mexico could help INECO better understand the needs of the Mexican market and develop a
bid that is competitive and meets the bidding requirements. Also, Grupo Mexico is a large
company with long experience in the railway sector, being able to obtain inside information
about the bid and influence the bidding process to win the bid. In addition, once the bid is
won, Grupo México could also obtain the necessary permits and licenses, hire suitable
subcontractors, and manage the project efficiently.
In conclusion, a strategic alliance between INECO, Grupo Mexico and CAF would be a wise
decision since it would allow them to combine their strengths and resources to present a
winning bid for the renovation of the freight rail network in Mexico. In addition, as Grupo
Mexico is the largest and most powerful company in the Mexican freight rail network, this
could be a determining factor when awarding bids for the renovation of the network. This
alliance would allow it to leverage Grupo Mexico's experience, resources and relationships to
win bids and carry out large-scale rail renovation projects.
So that this strategic alliance is closer to reality, below we specify what the role of each
person would be within the consortium. Firstly, and in relation to CAF, it would be in charge
of the design, manufacture and installation of railway rolling stock, such as locomotives,
freight cars. Secondly, Grupo México would contribute its experience in the operation and
maintenance of railways, as well as its knowledge of the geography and climatic conditions
of Mexico. And finally, INECO would be in charge of consulting and designing railway
infrastructure renovation projects, including the construction of new tracks, the renovation of
existing tracks and the installation of signaling and safety systems.
16
6.2 Value Proposition
6.2.1 Value Proposition for Grupo México

INECO's global presence and successful project completion worldwide translate into
prestigious recognition, solidifying their expertise in handling complex projects across
diverse environments. Their formidable team of over 4,500 engineers, a large portion of
whom boast invaluable local knowledge based in Mexico, forms the backbone of their
engineering and consulting expertise. This localized strength, coupled with their proven
ability to provide customized route optimization and strategic alignment planning while
adhering to local regulations and environmental considerations, positions INECO as an ideal
partner for Grupo México's railway construction ventures. They bring not just international
prestige and a track record of excellence but also the crucial local understanding and
expertise to navigate the Mexican landscape effectively. 31
6.2.2 Value Proposition for CAF

Two leading Spanish railway giants join forces, presenting a unique opportunity to solidify
their global leadership. Expanding into Mexico becomes a powerful showcase for their
comprehensive, high-quality solutions, further bolstering their reputation as industry leaders.
This collaboration transcends mere business; it becomes a beacon of Spanish excellence and
innovation, highlighting the nation's prowess in the sector. United by shared values of
excellence, integrity, and sustainability, INECO's technical expertise and CAF's
manufacturing prowess create a synergy unlike any other. This complementary blend allows
them to offer turnkey solutions, seamlessly covering every stage of a railway project, from
the very first blueprint to its operational launch – a testament to their ability to truly deliver
the future of rail.32
In order for INECO to contact them, we have simplified the access to them, as here you can
find more information about them.
6.3 Advantages and Disadvantages
6. 3.1 Advantages of the Strategic Alliance

6.3.1.1 General Advantages
First, local recognition and experience, as Grupo México and CAF are companies with a long
history in Mexico and a wide network of contacts. This local experience and recognition
would be an important advantage for INECO to enter the Mexican market. Second, access to
business opportunities since Grupo México and CAF are leading companies in the Mexican
railway sector. Their participation in the strategic alliance would allow INECO to access
business opportunities that it would not be in a position to take advantage of on its own.
Third, this strategic alliance would allow INECO to reduce the risks associated with entering
a new market. Grupo México and CAF would assume part of the financial and operational
risks, allowing INECO to focus on its core business, which is engineering and consulting.
31 (Grupo México, n.d.)

32 (CAF - Construcciones Y Auxiliar De Ferrocarriles, n.d.)
17
6.3.1.2 Specific Advantages
The strategic alliance with Grupo Mexico and CAF could facilitate INECO's access to public
contracts in the Mexican railway sector. Grupo Mexico is a company with a strong
relationship with the Mexican government, which could help INECO overcome regulatory
challenges in the Mexican market. Furthermore, Grupo Mexico and CAF have extensive
experience in the construction and operation of infrastructure in remote areas of Mexico. This
experience would be an important advantage for INECO in meeting the country's geographic
challenges. Also, Grupo Mexico and CAF have a strong commitment to security. This
experience would be an important asset for INECO to address the country's security
challenges.
6.3.2 Disadvantages of the Strategic Alliance

6.3.2.1 General disadvantages
First, the strategic alliance would entail a loss of independence for INECO. Grupo México
and CAF would have a significant stake in the company, which could influence its strategic
decisions. Second, Grupo México and CAF are companies with their own culture and values.
These cultural differences could make collaboration between the three companies difficult.
6.3.2.2 Specific disadvantages
Since INECO will only be responsible for consulting and design of rail infrastructure
renovation/construction projects, INECO will have less influence on important decisions
related to the project. For example, Grupo Mexico or CAF could decide to use materials or
suppliers that are not the best for the project, but are more profitable for them. Also as
INECO will only be involved in the design and construction, and not in the operation of the
project, its profitability will decrease, as the railroad business is generally more profitable
than design and construction. By participating in a consortium with two competing
companies, INECO could be exposed to conflicts of interest. This is because the two
companies could have opposing interests in the project. To mitigate this risk, INECO should
establish mechanisms to prevent conflicts of interest. For example, the consortium agreement
could include a clause prohibiting the parties to the consortium from competing with each
other for contracts related to the project.
Although Mexico is an attractive country, it also presents certain challenges that INECO will
have to face if it is to take advantage of the opportunities presented by the Mexican market.
7. CUSTOMER
In the event that this alliance between INECO, CAF and Grupo Mexico works, the main
client would be the Mexican government. The Mexican government is the owner of the
freight railroad network in Mexico, which is why it is the government that awards the related
bids.
The bidding process would be as follows. First, the Mexican government publishes a call for
bids. Then, interested companies, in this case the consortium, submit their bids. Finally, the
government evaluates the bids and awards the bid to the company that has submitted the best
18
solution. In the event that the bid submitted by the alliance between INECO, CAF and Grupo
Mexico wins, the Mexican government automatically becomes the alliance's client. The
consortium would then be in charge of carrying out the project to renovate the freight rail
network, according to the terms and conditions established in the bidding contract.
It should be noted that the renovation of the Mexican freight railroad network is a major
project, which requires significant investment. However, Grupo Mexico has a solid financial
capacity, which would allow the consortium to raise the necessary resources to carry out the
project. The consortium would also need to have the experience and expertise to manage such
a project. INECO and CAF's experience in the railway sector would be of great value in this
regard. As for the situation, the rail sector in Mexico is in a moment of expansion. The
Mexican government is promoting the development of the rail sector as part of its strategy to
reduce dependence on oil.
The alliance between INECO, CAF and Grupo Mexico would have a good chance of success
in the Mexican market. The consortium would have the necessary strengths to compete for
tenders for the renovation of the freight rail network, and to carry out the projects
successfully.
8. RETURN OF INVESTMENT
Among the various metrics that shape the financial landscape, the analysis of revenues stands
out as a linchpin in assessing the health and trajectory of any business. This section of the
report is dedicated to unraveling the revenue streams. This section aims to provide a
comprehensive overview of the factors influencing revenues, offer insights into performance
indicators, and furnish a framework for strategic decision-making.
For this project, INECO’s revenue sources will be achieved throughout the design and
surveillance of both freight and passenger's railways in Mexico. Focusing on that direction,
and according to our calculations on the average price of constructing one kilometer of
railway in Mexico (14 million euro per kilometer), and considering that a company like
INECO will get paid a 3% of the total cost of the project, we came with a range of numbers
that go between 22,68 Million Euro and 206,1 Million euro depending on the size and
wingspan of the projects studied in the report. 33
For more detailed numbers of each project, you can check in 10.3 Return of Investment.
9. CONCLUSION
The analysis of the McKinsey matrix has made it possible to identify the countries with the
greatest potential for the internalization of INECO in the infrastructure sector, highlighting
the country of Mexico for its market attractiveness and competitive position.
In addition, one of the main reasons why Mexico is positioned above the rest of the countries
is thanks to the nearshoring phenomenon, as this is positively affecting the country, making it
33 For more detailed numbers of each project, check the Excel spreadsheet.
19
an attractive destination for the relocation of the production of foreign companies. However,
one of the challenges it faces in order to remain leader in nearshoring is the poor condition of
its infrastructure, highlighting the renewal of both freight and passenger railways as an
opportunity for INECO in Mexico. Regarding the projects that INECO could have in the
country, some have been mentioned, highlighting the two projects that are under study
(Monterrey-San Antonio and Mexico City-Querétaro-León). Likewise, it is worth noting that
depending on the next elections in June 2024, the government will decide to invest more in
improving Mexican infrastructure, thus offering more opportunities for INECO.
However, although Mexico is a country that offers many opportunities, it also offers certain
challenges such as the government and its regulations, the climate and geographical
landscape, and security. In order to face these challenges, the best decision that INECO can
make is to create a consortium together with CAF and Grupo México. This would be a wise
decision since it would allow them to combine their strengths and resources to present a
winning bid for the renovation of the freight rail network in Mexico. On the one hand, CAF is
leader in the railway sector, being the best at the manufacturing of the railway rolling stock
and on the other hand, Grupo Mexico is the largest and most powerful company in the
Mexican freight rail network, meaning that this could be a determining factor when awarding
bids for the renovation of the network. Through this consortium it is more likely that INECO
will be able to take advantage of the great opportunities that Mexico offers, and therefore
work for the Mexican government.
It should be noted that we believe that we already know that INECO has a subsidiary in the
country. That is why the objective of this report is to make them aware of the great
opportunities the country of Mexico has to offer them thanks to the nearshoring phenomenon
since it would be a pity if they do not take advantage of these.
10. ANNEXES
10.1 GE Matrix Analysis for the rest of the countries
10.1.1 Canada
10.1.1.1 Market Attractiveness
GDP Growth Rate
The Canadian economy has experienced strong growth in 2023, with GDP growth of 3.9%.
This growth is expected to moderate to 3.6% in 2024. Inflation has risen to 6.8% in 2023, but
is expected to decline gradually in 2024. The Canadian government should continue with
policies that support economic growth and financial stability. The Bank of Canada should
continue to monitor inflation and take action if necessary to keep it under control.34
34 (IMF Data Mapper ®, n.d.)
20
Market Entry
The entry barriers for doing business in Canada are rated as moderate, at 2 on a scale of 1 to
5. This rating is influenced by several factors that businesses must navigate when entering the
Canadian market:
- Market Differences and Regulations: Canada has unique market conditions compared
to its largest trading partner, the United States. This includes differences in
regulations, standards, and requirements across various sectors. These can range from
a different language to specific certification standards, particularly pronounced due to
the distinct regulatory environments of its provinces and territories.
- Customs Procedures: Canadian customs procedures are another aspect that businesses
need to consider. Navigating these procedures requires understanding and compliance
with Canadian laws and standards.
- Government Procurement: Opportunities exist for selling to the Canadian
government, which is generally open to foreign bidders. However, businesses must be
registered in Canada and comply with all local requirements, which can be a barrier
for those unfamiliar with the system.
- Competitive Market Environment: The Canadian market, in certain sectors (including
the infrastructure one), is highly competitive. Success in these sectors often requires
competitive pricing, innovative marketing strategies, and value-added services.
These factors collectively contribute to Canada's moderate rating in terms of entry barriers.
While Canada presents a stable and lucrative market, businesses must carefully consider
these unique challenges and requirements to navigate the market successfully.35 36
Government Regulations
Canada's regulatory environment is characterized by a commitment to protect and advance

the public interest in various sectors, including health, safety, security, and economic well-
being. This is achieved through an evidence-based, efficient, and accountable regulatory
system. Because of its complexity, we assigned a 3 out of 5 in the matrix.37
The regulatory process in Canada involves thorough consultations with stakeholders,

including indigenous people, and requires a comprehensive analysis of risks, impacts on the
land, and costs and benefits. This process includes consideration of domestic and
international best practices.38
Overall, Canada's regulatory system is designed to be transparent, accountable, and

conducive to economic growth while maintaining high standards for health, safety, and
environmental protection. This comprehensive and consultative approach to regulation
35 (Canada - Market challenges, s. f.)

36 (Export.gov, s. f.)
37 (Secretariat, 2023a)
38 (Secretariat, 2020)
21
supports the country's strong economic stability, political stability, and effective management
of currency exchange rates, contributing to its attractiveness as a business destination.
These insights into Canada's regulatory system are based on information from the
Government of Canada's official websites on regulatory practices and frameworks
(Canada.ca).39
Political Safety
Canada generally scores well on the Political Stability and Absence of Violence/Terrorism
index, with an average score of 1.05 between 1996 and 2022. However, the score has
declined in recent years, reaching its lowest point of 0.77 in 2022. Despite this decline,
Canada's score remains significantly higher than the global average of -0.07 in 2022. This
suggests that while Canada is perceived as politically stable compared to other countries,
there may be recent concerns about potential instability or violence.40
Economic Stability
Canada enjoys a large and stable economy, with a high GDP per capita and steady growth. In
2023, the country's real GDP reached $2.2 trillion USD, with growth of 3.9%. This growth is
expected to moderate to 3.6% in 2024, but still remains a healthy rate. Total investment, as a
percentage of GDP, stands at 20.7%, indicating strong confidence in the country's economy.
While inflation is a current concern, with a rate of 6.8% in 2023, it is expected to gradually
decline in 2024. Private debt, as a percentage of GDP, is a factor to consider, as it is at an
elevated level of 269.94%.
Overall, the Canadian economy is in a strong position, with positive prospects for the future.
The country's political stability, with a high rate of political stability and absence of
violence/terrorism, also contributes to confidence in the economy.41
Currency Exchange Rate
The euro-Canadian dollar exchange rate has been on a downward trend since the beginning of
2023. At the beginning of the year, 1 euro was exchanged for approximately 1.50 Canadian
dollars. However, starting in February, the exchange rate began to fall. Since then, the
exchange rate has recovered slightly, reaching around 1.44 Canadian dollars per euro by the
end of 2023.
The euro-Canadian dollar exchange is expected to remain volatile in 2024. The main factors
influencing the exchange rate will be the monetary policies of the Eurozone and Canadian
central banks, as well as developments in the economies of both regions.42
Potential Plan Related to Infrastructure
39 (Secretariat, 2023)
40 (Canada Political Stability - Data, Chart | TheGlobalEconomy.com, n.d.)
41 (Canadian Economy & Political Stability – Study Nova Scotia, n.d.)
42 (European Central Bank, 2024)
22
Canada's measured infrastructure plan addresses urban development needs, focusing on
specific areas to achieve balanced economic and environmental outcomes. By strategically
targeting key regions, the plan aims to foster sustainable growth, enhance overall
infrastructure resilience, and create a harmonious balance between economic development
and environmental conservation.
10.1.1.2 Competitive Position
Recognition and perception of the company
INECO, an engineering and consultancy company focusing on sustainable mobility and

digital transformation, has established itself globally over 55 years. The company has a
significant presence in over 50 countries across all continents, including transport engineering
and consultancy projects. However, details about INECO's recognition within the Canadian
engineering sector are not readily available. The company's global experience and expertise,
particularly in transport infrastructure, likely contribute to notable recognition in Canada,
especially in relevant industrial sectors.
Quality and skill level of the workforce
INECO boasts a multidisciplinary team of 5,500 professionals globally, indicating a high

standard of workforce quality. Their involvement in complex and innovative transport
projects reflects their commitment to expertise and excellence. This level of quality likely
extends to their operations in Canada, considering the demand for high-level engineering
skills in the country's developed transport and infrastructure sectors.
Ability to produce goods or services at a lower cost than competitors
Assessing cost efficiency is complex without specific financial and operational data.
However, Canada's developed market and regulatory environment might present higher
operational costs than other regions. This could impact the cost efficiency of INECO's
projects in Canada, especially in the context of stringent environmental regulations and the
high quality of workforce and materials required.43
Company’s experience in the country
With over 55 years of global experience, including presence in all continents, INECO's local
experience in Canada is likely to be strong. Their extensive work in various transport and
infrastructure projects worldwide provides them with valuable insights that can be applied to
the Canadian context, especially in areas like sustainable mobility and digital transformation
in transport.
10.1.2 Germany
GDP Growth Rate
43 (Canada - Distribution & sales channels, s. f.)
23
Germany's GDP in 2023 is estimated at $3.8 trillion, making it the largest economy in Europe
and the fourth largest in the world. GDP per capita is $46,400, one of the highest in the
world. GDP growth has slowed in recent years, but is expected to pick up in 2024. GDP
growth in 2024 is expected to be 2.3%. 44
The main sectors of the German economy are manufacturing, services and construction. The
German manufacturing industry is one of the most competitive in the world. Germany's main
exports are automobiles, machinery, chemicals and electronics. Germany's main imports are
oil, natural gas, foodstuffs and machinery.45
Entry Barriers
Germany's well-regulated market with high standards for quality and compliance creates
certain entry barriers. These standards ensure quality and safety but may require additional
efforts for businesses to align with the regulatory requirements. Furthermore, the
infrastructure market in Germany is currently saturated both in terms of the number of
companies and the great power of local companies, making it difficult for INECO to enter the
market.
The regulatory environment in Germany is efficient and transparent but can be complex.
Businesses must often navigate various regulations, particularly in industries like
manufacturing, technology, and pharmaceuticals.
Political Safety
Germany enjoys remarkable political stability, characterized by a democracy and a solid

political system. The German federal system consists of 16 federal states with a high degree
of autonomy, which contributes to stability by distributing power. The federal government is
responsible for foreign policy, defense and other areas of national interest, while the federal
states manage local affairs such as education and culture.
Free and fair elections are a fundamental pillar of German democracy. Citizen participation is
high in Germany, with an active civil society and a culture of open and tolerant political
debate. Overall, Germany’s political stability is a key factor in its economic success and its
role as a leader in the EU and on the global stage. 46
Economic Stability
44 (Global Economic Prospects, n.d.)

45 (World Bank Open Data, n.d.)
46 (Sistema Político, n.d.)
24
Germany has a highly stable economy, with high GDP per capita and low unemployment.
Germany's GDP in 2023 is estimated at $3.8 trillion, making it the largest economy in Europe
and the fourth largest in the world. GDP per capita is $46,400, one of the highest in the
world. The unemployment rate in Germany is 5.3%, one of the lowest in Europe.
Inflation in Germany is 2.3%, below the ECB target of 2%. The European Central Bank
(ECB) is responsible for monetary policy in the Eurozone, which includes Germany. The
ECB aims to keep inflation at a level "below but close to 2% over the medium term". 47 48
The Euro, as Germany's currency, offers a strong and stable medium for trade, especially
within the Eurozone. This stability is beneficial for businesses operating in multiple Eurozone
countries.
Germany's visionary infrastructure plan prioritizes innovation and sustainable energy,

positioning the nation as a global leader in technology and economic advancement. By
focusing on cutting-edge technologies and eco-friendly practices, Germany aims to set new
standards for innovation and foster long-term economic growth, solidifying its position as a
dynamic force on the global stage.
Recognition and Perception of the Company
INECO is a well-recognized company in the field of transport engineering and consultancy.

Their involvement in significant projects like the high-speed Rail Baltica project, in
consortium with Renfe and Germany's DB Engineering & Consulting, highlights their
reputation and expertise in large-scale infrastructure projects.49
With a team of 3,000 highly specialized professionals, INECO's workforce quality is high.
Their expertise spans various sectors of transport, including railways, airports, and urban
development, ensuring high-quality output in their projects.
47 (Global Economic Prospects, n.d.)

48 (World Bank Open Data, n.d.)
49 (Ineco, Renfe and Germany’s DB, service providers for the high-speed rail Baltica project, 2022)
25
INECO's commitment to technological innovation and high-tech solutions indicates a focus
on cost efficiency. However, the specifics of cost efficiency in their German operations are
not detailed in the available sources.
INECO's involvement in projects like Rail Baltica and their role in modernizing various
transport systems globally demonstrate considerable local experience in different regions,
including Germany. Their diverse project portfolio shows their adaptability and
understanding of local requirements.
10.1.3 China
GDP Growth Rate
The GDP growth rate for China in 2024 has varied forecasts. The IMF projects a growth rate
of 4.6%, indicating continued weakness in the property sector and subdued external demand.
Another estimate by the Center for Forecasting Science at the Chinese Academy of Sciences
forecasts a slightly higher growth rate of around 5.3%. These projections suggest moderate
growth, influenced by internal economic policies and global market conditions. 50
Entry Barriers
The entry barriers in China can be considered moderate. While there are opportunities,
foreign companies may face challenges due to regulatory complexities and the need to adapt
to local market conditions.
The regulatory environment in China is known to be complex and often changing. This can
pose challenges for companies like INECO, requiring adaptability and a thorough
understanding of the local regulatory landscape.
Political Safety
China's political environment is generally stable, but it can be affected by internal policy
shifts and international relations. This stability is a positive aspect for businesses operating in
the country.
50 (Yao, 2024)
26
Economic Stability
China's economy is relatively stable, with efforts to address issues such as the property sector
crisis and local government debts. However, the economy is also subject to fluctuations
influenced by global economic trends and internal policy decisions. 51
The EUR/CNY exchange rate has been relatively stable in recent years, with the EUR
depreciating by 3% against the CNY in 2023. Several factors can affect the exchange rate,
including central bank monetary policies, economic growth, international trade and China-EU
relations.52
China has consistently focused on infrastructure development, which presents opportunities

for companies like INECO in the engineering and transport sectors. Continued investment in
infrastructure is likely to be a key driver of economic growth.
China's transportation infrastructure is highly recognized globally. It has made significant

improvements in its transport sector, particularly in developing smart technologies for ports,
shipping, and civil aviation. These advancements align with China's goals of building smart
cities and adopting IoT technologies, indicating a strong reputation in the transport sector.
The quality of the workforce in China's transportation sector is presumably high. The
country's focus on smart and advanced technologies in transportation indicates a skilled
workforce capable of managing and operating sophisticated systems and technologies.
While China's transportation infrastructure is advanced and extensive, the cost efficiency may
vary. Large-scale investments and the implementation of high-tech solutions suggest a focus
on long-term efficiency, though these might come with high initial costs.

51 (Where Is the Chinese Economy Heading in 2024?, n.d.)
52 (Xe, n.d.)
27
China has considerable local experience in transportation infrastructure. Its long history of
substantial investments in this sector and the successful implementation of various large-scale
projects demonstrate a deep understanding and expertise in developing and managing
transportation systems. 53
10.1.4 Vietnam
GDP Growth Rate
GDP Growth Rate: Vietnam's impressive GDP growth rate of 8.02% in 2022 was the fastest
since 1997, driven primarily by strong domestic retail sales and exports. The industrial and
construction sectors grew by 7.78%, the services sector expanded by 9.99%, and the
agricultural sector grew by 3.36%. Exports increased by 10.6% to $371.85 billion, while
retail sales rose by 19.8%. However, the economy faces challenges from a weakening global
demand that has already impacted its exports. The GDP growth in the fourth quarter of 2022
was 5.92%, slowing from 13.71% in the third quarter. This deceleration suggests that while
the economy is growing rapidly, it is subject to global economic fluctuations. 54
Entry Barriers
Entering the Vietnamese market presents some challenges due to regulatory complexities and
operational hurdles. While the government is working to improve the ease of doing business,
foreign companies often face difficulties related to bureaucracy, legal uncertainties, and
navigating the local business environment. These factors can act as barriers to entry for new
businesses.
The regulatory environment in Vietnam is undergoing reform but remains complex. The
business landscape is influenced by evolving policies and regulations, which can pose
challenges for international companies unfamiliar with the local legal system. Despite these
challenges, the government's efforts to streamline regulations and promote foreign investment
are gradually improving the business climate. 55
Political Safety
53 (China’s Transport Infrastructure Sector to See Rapid Improvements, n.d.)

54 (Vu, 2022)
55 (Team, 2023)
28
Vietnam's political environment is characterized by stability under a centralized government.
This stability is generally favorable for business operations, but the centralized control can
lead to policy changes that businesses need to adapt to. The government's strong influence in
various sectors means that political decisions can significantly impact the business
environment.
Economic Stability
Despite its rapid growth, Vietnam is still classified as a developing economy. This status is
reflected in its ongoing efforts to stabilize and diversify its economic base. While the
economy is growing, it's also facing challenges like inflationary pressures and dependency on
global economic trends, which can affect its stability.
The Vietnamese Dong's fluctuation poses both opportunities and risks. A weaker dong can
benefit exporters by making their goods more competitive in international markets. However,
it can also lead to increased costs for importing essential goods and materials, potentially
impacting inflation and overall economic stability. The current exchange rate between the
Vietnamese Dong and the Euro is approximately 24,44o VND to 1 EUR. The exchange rate
between these currencies has been fluctuating in recent years, since in 2023, the VND
depreciated by 5% against the EUR. It is important to note that the exchange rate is volatile
and can change at any time.56
Transportation and energy are given top priority in Vietnam's national infrastructure plan,
which also aims to improve connectivity and draw in foreign investment for favorable
economic growth and regional dominance.
Vietnam's rapid economic growth and expanding industrial sector make it a notable
destination for foreign investment. The country's GDP grew by 8.02% in 2022, and it hosts a
strong presence in industries like electronics, textiles, and mobile phones, which could be
beneficial for a company like INECO, known for its expertise in transport engineering.
Quality and Skill Level of the Workforce
While Vietnam offers competitive labor costs, there are concerns about the education level of
the workforce and its adequacy to meet the demands of highly specialized fields such as
56 (Xe, n.d.)
29
transport engineering. However, the government's focus on modernization and
competitiveness might be addressing these gaps.
Vietnam is recognized for its low labor costs, which is significantly competitive compared to
neighboring countries. This aspect, combined with the growing economy and developing
infrastructure, could contribute to overall cost efficiency for businesses like INECO.
For foreign companies, understanding Vietnam's business culture and navigating its
regulatory environment can be challenging. The country has been improving its legal
framework to support businesses, but rapid policy changes and administrative complexities
may require local expertise to navigate successfully. 57
10.1.5 Saudi Arabia
GDP Growth Rate
Saudi Arabia's GDP growth is expected to slow down in 2023 to around 3.1%, compared to
the robust growth of 8.7% in 2022. This deceleration can be attributed to factors such as
OPEC + agreements to cut oil production and a slowdown in global economic activities,
impacting the country's heavily oil-dependent economy. The non-oil sector, however, is
expected to continue its growth, aided by diversification efforts under the Vision 2030 plan.
This shift towards non-oil sectors is a strategic move to reduce the economy's reliance on oil
revenues.58
Entry Barriers
While Saudi Arabia is implementing reforms to improve business access, some challenges
remain (3 out of 5). These include navigating regulatory requirements and adapting to the
local business culture. However, the Vision 2030 plan, which includes initiatives to boost
private sector participation and economic diversification, is expected to gradually ease these
barriers.59
57 (Minh, 2022)
58 (Reuters, n.d.)
59 (GlobalData UK Ltd., 2023)
30
Saudi Arabia's Law of Inventions, Industrial Designs and Utility Models provides a legal
framework for the protection of intellectual property in the country. The law is in line with
international standards and seeks to encourage innovation and creativity.60
Political Safety
Saudi Arabia shows relatively low political stability globally, based on the Political Stability
and Absence of violence/terrorism index. Its average score between 1996 and 2022 was -
0.37, significantly below the global average (-0.07). The country's lowest score (-0.66) was
recorded in 2018, while the highest (0.23) was in 2000. While the 2022 score (-0.36) is
similar to the average, it does not reflect a clearly positive trend toward improvement. This
suggests that there is a persistent perception of potential unrest or violence within the
country.61
Economic Stability
The Saudi economy is considered stable, largely due to its substantial oil revenues. Despite
the expected slowdown in GDP growth in 2023, efforts to diversify the economy and develop
non-oil sectors are contributing to overall economic stability. This diversification is critical in
reducing dependence on oil and ensuring long-term stability. 62
The current exchange rate between the Saudi Arabian Rial (SAR) and the Euro (EUR) is
approximately 4.04 SAR to 1 EUR. This means that if you have 1 EUR, you can exchange it
for 4.04 SAR.
The SAR-EUR exchange rate has been relatively stable in recent years, with the SAR
depreciating by 1% against the EUR in 2023. Several factors can affect the exchange rate,
including central bank monetary policies, economic growth, oil prices and geopolitical risk. It
is important to keep in mind that the exchange rate is volatile and can change at any time. 63
60 (Basic Law of Governance (Promulgated by the Royal Decree No. A/90 Dated 27/08/1412H (March 1, 1992)), Saudi
Arabia, WIPO Lex, n.d.)
61 (Saudi Arabia Political Stability - Data, Chart | TheGlobalEconomy.com, n.d.)
62 (Saudi Arabia’s Economy Grows as It Diversifies, 2023)
63 (Xe, n.d.)
31
Saudi Arabia intends to become a worldwide economic hub through its ambitious
infrastructure plan, which places a strong emphasis on mega-projects and technical
developments. The strategy aims to establish Saudi Arabia as a leader in economic
innovation, drawing in foreign investments and creating a vibrant business environment on
the world scene by utilizing ambitious initiatives.
Saudi Arabia's transportation infrastructure has gained significant recognition, particularly

under its Vision 2030 framework, which aims to diversify the economy and enhance
infrastructure. The establishment of new entities like the General Authority for Roads and the
merging of state-owned rail operators under Saudi Arabia Railways indicates a focused
approach towards improving transportation infrastructure. The country is also engaging in
public-private partnerships (PPPs) to develop infrastructure projects, further enhancing its
recognition in the transport sector.
The workforce quality in the transport sector is likely to be strong, given the country's focus
on technology, smart solutions, and the expansion of aviation services. However, the reliance
on international expertise for some projects might indicate a need for further development in
local workforce capabilities.
While Saudi Arabia is making significant investments in its transport sector, the cost
efficiency of these projects may vary. The focus on large-scale projects and high-tech
solutions suggests a balance between high initial costs and long-term efficiency gains.
The country has substantial local experience in developing transport infrastructure, evidenced
by its ambitious transport and logistics projects under Vision 2030 and the National Transport
and Logistics Strategy. This experience is particularly notable in road expansion and aviation
services.
10.1.6 Brazil
32
GDP Growth Rate
The GDP growth rate for Brazil in 2024 is forecasted to vary, with different sources
predicting different rates. According to the Brazilian Central Bank, the growth is expected to
be around 1.8%, while Euromonitor International projects a 1.5% growth rate. Another
source, Agência Brasil, predicts a slightly higher growth rate of 2.26%. These forecasts
suggest a variable growth, influenced by both domestic and international economic factors. 64
Entry Barriers
While reforms are improving access to Brazil's market, challenges remain, particularly in
navigating the regulatory and bureaucratic landscape. The complexity and frequent changes
in regulations can pose barriers to new entrants, mostly in the infrastructure sector, where big
players such as OEC.
Brazil's regulatory framework presents challenges for competition and economic efficiency.
Existing regulations often create barriers to entry for new companies, restrict competition in
professional and network sectors, and increase costs for consumers.65
Political Safety
Brazil has moderately low political stability according to the Political Stability and Absence
of Violence/Terrorism index. Its average score between 1996 and 2022 was -0.22, below the
world average (-0.07). While its highest score was 0.33 in 2002, it has been decreasing in
recent years, reaching -0.33 in 2022, suggesting a growing perception of possible
disturbances or violence. It should be noted that this is a single indicator and the actual
political situation may be more complex and nuanced.66
Economic Stability
Brazil's economic stability is moderate. While the country has experienced moderate growth
in recent years, high inflation, high public debt and political uncertainty represent significant
challenges.
In 2022, Brazil's GDP grew by 4.6%, driven by a recovery in consumption and investment.
However, growth is expected to moderate in 2023 to 2.7%. 67
64 (Reuters, n.d.)
65 (Regulatory Reform in Brazil | En | OECD, n.d.)
66 (Brazil Political Stability - Data, Chart | TheGlobalEconomy.com, n.d.)
67 (Política Y Economía Brasil - Santandertrade.com, n.d.)
33
The EUR/BRL exchange rate has been volatile in recent years, with the EUR depreciating by
10% against the BRL in 2023. Several factors can affect the exchange rate, including central
bank monetary policies, economic growth, oil prices and geopolitical risk. It is important to
keep in mind that the exchange rate is volatile and can change at any time. 68
Brazil's crucial infrastructure plan places a strong emphasis on sustainability and connectivity
to boost the country's competitiveness, promote social and economic growth, and establish it
as a major player on the international scene.
INECO has established a notable presence in Brazil, particularly through its subsidiary the
company do Brasil Consultoria em Transporte Sociedade Ltda., which was established in
2000. This subsidiary focuses on transportation engineering and consulting, indicating a
significant level of recognition in the Brazilian market.69
INECO's commitment to providing specialized engineering and consultancy services,

combined with its global presence, implies a high-quality workforce. The company's focus on
sustainable mobility and digital transformation also indicates an emphasis on skilled and
innovative personnel.
INECO's operations in Brazil, like any global company, would be influenced by the local
economic context. Brazil's economic landscape offers challenges and opportunities for cost
efficiency, especially in the engineering and consulting sectors.
With a presence in Brazil since 2000, INECO has accumulated significant local experience.
This is further evidenced by their involvement in key projects and collaborations with
Brazilian entities, reflecting a deep understanding of the Brazilian transportation and
infrastructure sector. 70
68 (Xe, n.d.)
69 (Ineco Signs Agreement With Brazilian Company EPL, 2018)
70 (Ineco Do Brasil Consultoria Em Transporte Sociedade Ltda. Company Profile - Brazil | Contacts & Key Executives |
EMIS, n.d.)
34
10.2 GE Matrix
10.2.1 GE Matrix Chart
Source: Author’s Elaboration
10.2.2 Market Attractiveness Indicators
35
10.2.3 Competitive Position Indicators
10.2.4 GE Matrix Results
10.3 Return of Investment
10.4 People of Interest: Key Contacts
36
10.5 Map of Mexico and the consequences of nearshoring
37
11. BIBLIOGRAPHY
INECO
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https://www.ineco.com/webineco/mercados/ferroviaria
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https://www.ineco.com/ineco/comunicacion/noticias/la-industria-ferroviaria-espanola-
posiciona-al-pais-como-referente-mundial
CAF
- CAF - Construcciones y Auxiliar de Ferrocarriles. (n.d.). https://www.caf.net/es
GRUPO MEXICO
- Grupo México (n.d.). https://www.gmexico.com/Pages/default.aspx
MEXICO
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C. (2023, December 7). Mexico Economic Outlook. December 2023. BBVA
Research. https://www.bbvaresearch.com/en/publicaciones/mexico-economic-
outlook-december-2023/
- Arteaga, J. R. (2023, April 18). Nuevo León espera la llegada de 150 empresas por el
nearshoring. Forbes México. https://www.forbes.com.mx/nuevo-leon-espera-la-
llegada-de-150-empresas-por-el-nearshoring/
38
- article. (2023, March 31). Mexico Business.
https://mexicobusiness.news/infrastructure/news/sict-invest-mx352-billion-finish-
541-projects#:~:text=Nu%C3%B1o%20said%20that%20the%20Mexican,added
%20to%20the%20railway%20network.
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en el país sus factorías de Asia. Hipertextual.
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assessment
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responde. (2023). InfoBae. https://www.infobae.com/mexico/2023/10/05/elon-musk-
dejara-de-construir-la-fabrica-de-tesla-en-nuevo-leon-samuel-garcia-responde/
- Enríquez, A. (2021b, July 20). Mexico Business.
https://mexicobusiness.news/automotive/news/mexicos-new-general-mobility-and-
road-safety-law-almost-ready
- López, A. I., López, A. I., & López, A. I. (2024, January 16). Calendario electoral
2024: fechas clave de las elecciones en México. El País México.
https://elpais.com/mexico/elecciones-mexicanas/2024-01-16/calendario-electoral-
2024-fechas-clave-de-las-elecciones-en-mexico.html
- Mexico economic outlook, 2023. (2023, October 4). Deloitte Insights.
https://www2.deloitte.com/us/en/insights/economy/americas/mexico-economic-
outlook.html
- Mexico - Safety and security. (n.d.). International Trade Administration | Trade.gov.
https://www.trade.gov/country-commercial-guides/mexico-safety-and-security
39
- Mexico - Transportation infrastructure equipment and services. (n.d.). International
Trade Administration | Trade.gov. https://www.trade.gov/country-commercial-
guides/mexico-transportation-infrastructure-equipment-and-services
- Programa Nacional Ferroviario. (2022). Comunicaciones - Subsecretaría De
Infraestructura De México.
https://www.cmic.org.mx/sectores/ferrocarrilera/Ferrocarriles/Documentos%20pdf/
Programa%20Ferroviario%202022.pdf
- Staff, M. (2023, September 19). OECD upgrades Mexico growth forecasts for 2023
and 2024. Mexico News Daily. https://mexiconewsdaily.com/business/oecd-
upgrades-mexico-growth-forecasts-for-2023-and-2024/
- Stillman, A. (2023, December 15). El estancamiento de Musk lleva a México a
cuestionarse la masiva fábrica de Tesla. Bloomberg Línea.
https://www.bloomberglinea.com/2023/12/15/el-estancamiento-de-musk-lleva-a-
mexico-a-cuestionarse-la-masiva-fabrica-de-tesla/
- The challenges of Rural Transportation in Mexico. (2021, November 6). ReVista -
Harvard Review of Latin America. https://revista.drclas.harvard.edu/the-challenges-
of-rural-transportation-in-mexico/
- Tren maya. (2021, September 6). Ineco.
https://www.ineco.com/webineco/en/country/mexico/tren-maya
- Un consorcio formado por Renfe, Ineco y la alemana DB ha resultado adjudicatario
de un contrato para el proyecto del Tren Maya en México. (2020, December 11).
INECO. https://www.ineco.com/webineco/noticias/consorcio-formado-renfe-ineco-
alemana-db-ha-resultado-adjudicatario-contrato-proyecto-del
- What to Expect for the Mexican Economy in 2024 According to Two Top Economic
Forecasters. (2024, January 4). Bloomberg Linea.
40
https://www.bloomberglinea.com/english/what-to-expect-for-the-mexican-economy-
in-2024-according-to-two-top-economic-forecasters/
- Varela, M., Varela, M., & Varela, M. (2023, December 22). López Obrador echa a
andar el tren Interoceánico que unirá el golfo de México con el Pacífico. El País
México. https://elpais.com/mexico/2023-12-22/lopez-obrador-echa-a-andar-el-tren-
interoceanico-que-unira-el-golfo-de-mexico-con-el-pacifico.html
- Zamarrón, I. (2023, October 16). Nearshoring en México: estos son los beneficios que
podría obtener el país a 2030. Forbes México.
https://www.forbes.com.mx/nearshoring-en-mexico-estos-son-los-beneficios-que-
podria-obtener-el-pais-a-2030/#:~:text=El%20nearshoring%20en%20M
%C3%A9xico%2C%20por,en%20las%20dos%20%C3%BAltimas%20d
%C3%A9cadas.
CANADA
- Canada - Distribution & sales channels. (s. f.). International Trade Administration |
Trade.gov. https://www.trade.gov/country-commercial-guides/canada-distribution-
sales-channels
- Canada - Market challenges. (s. f.). International Trade Administration | Trade.gov.
https://www.trade.gov/country-commercial-guides/canada-market-challenges
- Canada - Market Entry Strategy. (s. f.). International Trade Administration |
Trade.gov.
https://www.trade.gov/country-commercial-guides/canada-market-entry-strategy
- Canada Political stability - data, chart | TheGlobalEconomy.com. (n.d.).
TheGlobalEconomy.com.
https://www.theglobaleconomy.com/Canada/wb_political_stability/
41
- Canadian Economy & Political Stability – Study Nova Scotia. (n.d.).
https://studynovascotia.ca/canadian-economy-political-stability/
- Días, C., Días, C., & Días, C. (2022, August 5). ACS y Acciona, finalistas en la puja
por un proyecto ferroviario de 4.173 millones en Canadá. Cinco Días.
https://cincodias.elpais.com/cincodias/2022/08/05/companias/1659704650_647570.ht
ml
- European Central Bank. (2024, February 2). ECB euro reference exchange rate:
Canadian dollar (CAD).
https://www.ecb.europa.eu/stats/policy_and_exchange_rates/euro_reference_exchan
ge_rates/html/eurofxref-graph-cad.en.html
- Export.gov. (s. f.). https://www.export.gov/apex/article2?id=Canada-Trade-Barriers
- IMF Data Mapper ®. (n.d.). https://www.imf.org/external/datamapper/profile/CAN
- Secretariat, T. B. O. C. (2020, 19 noviembre). Cabinet directive on regulation.
Canada.ca. https://www.canada.ca/en/government/system/laws/developing-
improving-federal-regulations/requirements-developing-managing-reviewing-
regulations/guidelines-tools/cabinet-directive-regulation.html
- Secretariat, T. B. O. C. (2023, 17 julio). Developing and improving federal
regulations. Canada.ca.
https://www.canada.ca/en/government/system/laws/developing-improving-federal-
regulations.html
- Secretariat, T. B. O. C. (2023a, enero 11). How Canada’s regulatory system works.
Canada.ca. https://www.canada.ca/en/government/system/laws/developing-
improving-federal-regulations/how-canadas-regulatory-system-works.html
GERMANY
42
- Ineco, Renfe and Germany’s DB, service providers for the high-speed rail Baltica
project. (2022, 31 agosto). Ineco. https://www.ineco.com/webineco/en/news/ineco-
renfe-germanys-db-service-providers-high-speed-rail-baltica-project
- Global Economic Prospects. (n.d.). https://www.worldbank.org/en/publication/global-
economic-prospects
- Pamela. (2023, September 18). Historic EUR 40 billion rail renewal plan unveiled in
Germany. Railway PRO. https://www.railwaypro.com/wp/germany-commits-e
- Sistema político. (n.d.). La Actualidad De Alemania. https://www.tatsachen-ueber-
deutschland.de/es/politica-alemania/sistema-politico
- World Bank Open Data. (n.d.). World Bank Open Data.
https://datos.bancomundial.org/country/DE
CHINA
- China’s transport infrastructure sector to see rapid improvements. (n.d.). Fitch
Solutions. https://www.fitchsolutions.com/bmi/infrastructure/freight-transport-
shipping/chinas-transport-infrastructure-sector-see-rapid-improvements-24-01-2022
- Where is the Chinese economy heading in 2024? (s. f.).
https://privatebank.jpmorgan.com/apac/en/insights/markets-and-investing/where-is-
the-chinese-economy-heading-in-2024
- Writer, S. (2023, May 30). China keeps pouring money into highways, railroads and
airports. Nikkei Asia. https://asia.nikkei.com/Politics/China-keeps-pouring-money-
into-highways-railroads-and-airports
- Xe. (n.d.). 1 EUR to CNY - euros to Chinese yuan renminbi exchange rate.
https://www.xe.com/currencyconverter/convert/?Amount=1&From=EUR&To=CNY
43
- Yao, K. (2024, January 15). China growth seen slowing to 4.6% in 2024, raising heat
on policymakers. Reuters. https://www.reuters.com/world/china/china-growth-seen-
slowing-46-2024-raising-heat-policymakers-2024-01-15/
VIETNAM
- Bao Ngoc - Kim Thoa / Tuoi Tre News. (2023, December 11). Vietnam ready to pour
over $70bn into building cross-country high-speed railway. Tuoi Tre News.
https://tuoitrenews.vn/news/features/20231211/vietnam-ready-to-pour-over-70bn-
into-building-crosscountry-highspeed-railway/77223.html
- Minh, A. (2022, September 18). Foreign companies in Vietnam seek consistent
business environment. VnExpress International – Latest News, Business, Travel and
Analysis From Vietnam. https://e.vnexpress.net/news/economy/foreign-companies-in-
vietnam-seek-consistent-business-environment-4512614.html
- Team, B. C. (2023, November 30). Why doing business in Vietnam: benefits vs.
challenges. BBCIncorp - Vietnam. https://bbcincorp.com/vn/articles/why-doing-
business-in-vietnam
- Vu, K. (2022, December 29). Vietnam 2022 GDP growth quickens to 8.02%, fastest
since 1997. Reuters. https://www.reuters.com/markets/asia/vietnam-2022-gdp-
growth-quickens-802-vs-258-expansion-2021-2022-12-29/
- Xe. (n.d.). Vietnamese dongs a euros | Convierta 1 VND a EUR | Xe.
https://www.xe.com/es/currencyconverter/convert/?
Amount=1&From=VND&To=EUR
SAUDI ARABIA
44
- Basic Law of Governance (promulgated by the Royal Decree No. A/90 dated
27/08/1412H (March 1, 1992)), Saudi Arabia, WIPO Lex. (n.d.).
https://www.wipo.int/wipolex/en/legislation/details/7973
- Fast Company Middle East. (2023, October 9). Saudi Arabia to invest $175 billion
annually on mega projects - Fast Company Middle East | The future of tech, business
and innovation. Fast Company Middle East | the Future of Tech, Business and
Innovation. https://fastcompanyme.com/news/saudi-arabia-to-invest-175-billion-
annually-on-mega-projects/#:~:text=The%20report%27s%20findings%20suggest
%20that,create%20millions%20of%20new%20jobs.
- GlobalData UK Ltd. (2023, May 12). Saudi Arabia’s economic growth to decelerate
to 3.1 % in 2023, forecasts GlobalData. GlobalData.
https://www.globaldata.com/media/business-fundamentals/saudi-arabias-economic-
growth-decelerate-3-1-2023-forecasts-globaldata/
- Reuters. (n.d.). Saudi Arabia to boost spending in 2023, GDP growth to slow. Nasdaq.
https://www.nasdaq.com/articles/saudi-arabia-to-boost-spending-in-2023-gdp-growth-
to-slow
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https://www.imf.org/en/News/Articles/2023/09/28/cf-saudi-arabias-economy-grows-
as-it-diversifies
- Saudi Arabia Political stability - data, chart | TheGlobalEconomy.com. (n.d.).
https://www.theglobaleconomy.com/Saudi-Arabia/wb_political_stability/
- Xe. (n.d.). 1 SAR to EUR - Saudi Arabian Riyals to Euros exchange rate.
https://www.xe.com/currencyconverter/convert/?Amount=1&From=SAR&To=EUR
45
BRAZIL
- Brazil Political stability - data, chart | TheGlobalEconomy.com. (n.d.).
https://www.theglobaleconomy.com/Brazil/wb_political_stability/
- Ineco do Brasil Consultoria em Transporte Sociedade Ltda. Company Profile - Brazil
| Contacts & Key Executives | EMIS. (n.d.). https://www.emis.com/php/company-
profile/BR/Ineco_do_Brasil_Consultoria_em_Transporte_Sociedade_Ltda_en_56795
76.html
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https://www.ineco.com/webineco/en/communication/latest-news/ineco-signs-
agreement-brazilian-company-epl
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skeptics caution about spending spree | AP News. AP News.
https://apnews.com/article/lula-brazil-pac-infrastructure-petrobras-
658c2227e54113bd1570b3ef81f11a05
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Nasdaq. https://www.nasdaq.com/articles/brazil-central-bank-sees-gdp-growth-of-
2.9-in-2023-1.8-in-2024
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https://www.xe.com/currencyconverter/convert/?Amount=1&From=EUR&To=BRL
46
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Final Report INECO - Team 5

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Global Marketing Strategies

1. MISSION, VISION AND CORE VALUES

INECO is an international engineering, consulting, and technological services company with

1 (Home | Ineco, n.d.)

2. MARKET ATTRACTIVENESS INDICATORS

2.1 GDP Growth Rate

2.2 Entry Barriers

2.3 Government Regulations

2.4 Political Safety

2.5 Economic Stability

2.7 Potential Plan Related to Infrastructure

3. COMPETITIVE POSITION INDICATORS

3.1 Recognition and perception of the company

3.2 The quality and skill level of the workforce

3.4 Company's experience in the country

4. SELECTION OF THE COUNTRIES

Railway connectivity works include 30 highways, 51 construction projects, modernization of

5.1 Analysis of Mexico according to GE Matrix

5.1.1 Market Attractiveness

5.1.1.1 GDP Growth Rate

9 (Fast Company Middle East, 2023)

5.1.1.2 Entry Barriers

5.1.1.3 Government Regulations

The government's focus on transportation infrastructure has a significant economic impact,

5.1.1.4 Political Safety

Mexico's political environment is relatively stable but can be unpredictable, especially

5.1.1.5 Economic Stability

Nearshoring is emerging as a significant driver of Mexico's economy. The relocation of

5.1.1.6 Currency Exchange Rate

In summary, Mexico's economy in 2024 is forecasted to grow steadily, supported by private

12 (Bloomberg Línea, 2024)

Mexico is making major investments in border and transportation infrastructure, especially to

5.1.2 Competitive Position

5.1.2.1 Recognition and perception of the company

5.1.2.2 Quality and skill level of the workforce

5.1.2.3 Ability to produce goods or services at a lower cost than competitors

When it comes to important infrastructure projects, where cost-effectiveness is crucial,

5.1.2.4 Company’s experience in the country

17 (Enriquez, A., 2021b)

5.2 Why Mexico

Nearshoring is a business strategy to relocate part of companies' production and supply

5.2.1 Opportunity in Mexico

In order for México to continue to be a leader in nearshoring, we have identified the

23 (Varela et al., 2023)

5.2.2 Challenges of the Mexican market

Government Policies and Regulatory Challenges

27 (Subsecretaría de Infraestructura de México, 2022)

6.1 Strategic Alliance

6.2.1 Value Proposition for Grupo México

6.2.2 Value Proposition for CAF

6.3 Advantages and Disadvantages

6. 3.1 Advantages of the Strategic Alliance

31 (Grupo México, n.d.)

6.3.2 Disadvantages of the Strategic Alliance

10.1 GE Matrix Analysis for the rest of the countries

10.1.1.1 Market Attractiveness

GDP Growth Rate

34 (IMF Data Mapper ®, n.d.)

Canada's regulatory environment is characterized by a commitment to protect and advance

The regulatory process in Canada involves thorough consultations with stakeholders,

Overall, Canada's regulatory system is designed to be transparent, accountable, and

35 (Canada - Market challenges, s. f.)

Currency Exchange Rate

Potential Plan Related to Infrastructure