Professional Documents
Culture Documents
IN MEXICO
GEOGRAPHICAL INFORMATION
• Is bordered by the United States to the north and
Belize and Guatemala to the southeast.
• Mexico's total area is 1,972,550 km².
• Mexico shares a 3,141 km border with the United
States
• Covering almost 2 million square kilometers
• Mexico is the fifth-largest country in the Americas
by total area and the 14th largest in the world.
• Mexico is one of the 17 megadiverse countries of
the world. With over 200,000 different species.
• Mexico is home of 10–12% of the world's
biodiversity.
Mexico
• Fear of the unknown
– Language, culture
– Export paperwork
– International Insurance
– Business Loans
• Budget
• Market entry
• 106 million people
• 1.7% population growth per year
• 62% pop between 15-64 years
• 33% pop between 0-14 years
The Mexican Market
• Why is it important?
– Two defined economic groups: rich & poor
• Poor majority does not equal insignificant market
• 30 million consumers w/discretionary income
• Concentrated in major cities
• Sophisticated shoppers
• Rich = really rich = 24 out of 500
richest men are Mexican.
The Mexican Market
– Largest number of FTAs
• Trade US & CAN tripled since NAFTA 1994
– Lots of $ in Mexico - Income distribution: top 20%
earn 55% of total & private consumption lead
growth in past 2 years
– Actively seeking foreign participation in its
economy: no. state owned enterprises fell 1982
>1000, 2000 <200
The Mexican Market
• Exports: $168 billion - 2000
• Imports: $176 billion - 2000
• Infrastructure
– Airports: 238 (paved), 1610 (unpaved)
– Seaports:15 (major)
– Expressways: 3960 miles
– Highways: 56,178 miles
Expressways
Mode of Entry
• Exporting
– Direct & Indirect
• Joint Venture
– Licensing & Franchising
– Management Contracts
– Turn-key projects
– Ownership arrangements
• Foreign Direct Investment
Challenges/Success Factors
• Foreigner • Perception Skills:
• Language Barrier blending in
• Work approach • Few words
• Relationships • Access to high levels &
business etiquette
• Networking
Mexican Flag
Doing Business in Mexico
• Conscious of history and tradition - proud and
patriotic
• Patience is advised - skeptical of foreigners in
their country and business
• “Despacio que tengo prisa”
• Establish reputation by keeping
every commitment
Business Savvy
• Initial contact with key decision maker
• Networking: opens doors
• Chambers
• Government contacts
• Before: Research & Recommendations
Business Savvy
• Telephone or verbal? In writing, email or fax &
follow up
• Need signature for agreements
• Translations & translators - avoid mistakes
• Do you really speak Spanish?
• Advertising - hire a professional
Business Savvy
• Direct selling
– Control over product
– Expenses: staff & inventory
• Branch office
– US trained personnel in control of ops
– 183 days over 12 month-period
Business Savvy
• Broker/Representative
– Familiar with your market
– Not exclusive
• Master distributor
– One client, large shipments
– One more on his list?
Business Savvy
• Joint venture
– Ownership position in your business
– Finding Mr. Right
Business Protocol
• Non-smoking areas - unknown
• Who pays? Whoever extended invitation
• A woman NEVER pays.
• Refer to people by their prefix
• Prefix, First Name, (Middle name), Paternal
Last Name, Maternal Last name
Business Protocol
NAME
• Maiden
– María (Elena) Gómez Ramírez
• Address
– Lic. Gómez / Srita. Gómez
• Married
– María Elena Gómez de Rodríguez
Business Protocol
ETIQUETTE
• Woman enters room - stand up
• Carry plenty of business cards
• Don’t be hyperactive
• Don’t look at the watch constantly
– allow at least 2 hours per meeting (+ traffic)
• Be on time, expect others to be late
Business Protocol
ETIQUETTE
• Personal space closer
• Touching, hugging, kissing
• Louder
• Hand gestures
Business Protocol
ENTERTAINMENT
• May or may not discuss business
– Avoid talking about income, status, investment &
historically sensitive topics
• Watch out for altitude & alcohol!
• Dining takes long, no rush
• Different hours - snacks
Business Protocol
Weekly Schedule
• 8:00-9:00/10:00 Breakfast
• 10:00-2:00 - Office hours
• 2:00-4:00/5:00 - Lunch
• 4:30-6:00/7:00 - Office hours
• 7:00-9:00 - Cocktails, happy hour
• 9:00-Midnight/beyond - Dinner
POLITICAL INFORMATION
• Capital: Mexico City
• Population: 2007 estimate108,700,891 (11th)
• 2005 census 103,263,388
PAYING TAXES
The data below shows the tax that a medium-size company must pay or withhold in a given year, as well as
measures of the administrative burden in paying taxes. These measures include the number of payments an
entrepreneur must make; the number of hours spent preparing, filing, and paying; and the percentage of their
profits they must pay in taxes.
The time and cost required to resolve bankruptcies is shown below. The data identifies
weaknesses in existing bankruptcy law and the main procedural and administrative
bottlenecks in the bankruptcy process. The recovery rate, expressed in terms of how
many cents on the dollar claimants recover from the insolvent firm, is also shown.
• Mexico has a lot of restrictions policies that slows the process to make
business here, so the foreign industries search for another nations.
Although we have a very cheap labor, that’s why the Maquiladoras
has have a lot of success here.
BIBLIOGRAPHY
• http://es.wikipedia.org/wiki/M%C3%A9xico
• http://en.wikipedia.org/wiki/Foreign_relations_of_Mexico
• http://www.doingbusiness.org/ExploreEconomies/?economyid =127
• http://translate.google.com/translate?hl=es&sl=en&u=http://
www.doingbusiness.org/Main/Mexico.aspx&sa=X&oi=translate&resnum=1&ct=
result&prev
=/search%3Fq%3Dwhen%2Bdoing%2Bbusiness%2Bmexico%26hl%3Des
• http://www.mexico-trade.com/DOINGMX.htm
• http://www.dfat.gov.au/publications/business_mexico/
• http://www.importexporthelp.com/doing-business-in-mexico.htm