Doing business in Mexico

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Doing business in Mexico
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Comments about history and politics

• Spanish dominance in 1521 by Hernán Cortéz
• Independence war by Miguel Hidalgo y Costilla
  1810 - 1821
• Mexican Revolution 1910 - 1917
• Mexican law (Constitución Mexicana) 1917
• During 71 years PRI was the political party in
  power
• Present time
• President Vicente Fox Quesada
• Main political parties
• PAN, PRI, PRD
• Presidential election 2006

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México

• Country extension 1 964 375 km²
• 14 world place in country extension
• Population over 100 million people

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Free trade agreements between Mexico and the world

• Méxicos free trade agreements include a total
  of 46 countries
• The most recent agreement was with Japan
• It will be formally effective from April 1st,
  2005
• It is a great opportunity to develop
  international business activities with México

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                                      Acuerdos
de Complementación Económica (ACEs) Chipre,
Eslovenia, Estonia, Hungría, Letonia, Lituania,
Malta, Polonia, República Checa, República
Eslovaca
Acuerdos de Complementación Económica
(ACEs) Chipre, Eslovenia, Estonia, Hungría,
Letonia, Lituania, Malta, Polonia,
República Checa, República Eslovaca
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Cultural aspects
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Cultural aspects

• Culture
• Culture defines people identity, roots, behaviors
  and personal development vision
• 50 of international businesses does not concrete
  because of cultural problems

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Cultural aspects

• Closing a deal is more than just signing a
  contract. It demands socialization skills,
  friendship (in Latin America), protocols and
  knowledge about the foreign culture
• Main cultural aspects

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Cultural aspects Mx North AmericaFamily

• Mexico
• Priority 1 in life
• Work in second term
• Father, head of family
• Children stay in home usually until get married
• Company executives base promotion decisions in
  different cities on family interests

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Cultural aspects Mx North AmericaReligion

• Mexico
• Majority of the population is Catholic
• Religion is a fundamental element in life
• Religious symbols may have an important influence
  in work environment

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Cultural aspects Mx North AmericaFeelings

• Mexico
• People base its decisions on feelings
• People avoid conflict and situations of win- lose
• Avoid to say no
• Work issues may be considered as personal
  conflicts

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Cultural aspects Mx North AmericaNationalism

• Mexico
• Nationalism
• Proud of history and traditions
• People like to stay in Mexico but economic
  pressures promotes migration
• People living out of Mexico prefer to buy Mexican
  products

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Cultural aspects Mx North AmericaSocial
protocols - Status

• Mexico
• It is very important academic development in
  social spheres
• Strong idea of the gentleman concept
• Status and professional titles are very important
  
• Status in society is more important than personal
  achievements

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Cultural aspects Mx North America

• Mexico
• Personal presentation
• First impression never forgets
• Ethics
• There are problems of corruption in public
  institutions and government
• In general, there is a general interest in
  society to improve this issue

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Cultural aspects Mx North AmericaStyles

• Mexico
• Romantic, artistic, enjoy music and mystic
  elements
• In business situations, ceremonies and social
  recognition is very important

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Cultural aspects Mx North America

• For doing business in Mexico
• First recommendation
• Work to win people trust
• Second recommendation
• Be aware of creating unreachable expectations
  about business ideas

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Doing business in Mexico

• Sources of information

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Sources of information

• Review the following web pages
• http//www.contactopyme.gob.mx
• http//www.siem.gob.mx/portalsiem/

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Exporting to México

• Review the following web pages
• http//www.aduanas.gob.mx/
• http//www.economia.gob.mx/

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Thank you!

• Jorge Franco
• franco_at_itesm.mx