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Doing business in Mexico. 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

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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

  • México’s 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

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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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

Cultural aspects: Mx – North AmericaFamily


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Mexico

Majority of the population is Catholic

Religion is a fundamental element in life

Religious symbols may have an important influence in work environment

Cultural aspects: Mx – North AmericaReligion


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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

Cultural aspects: Mx – North AmericaFeelings


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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

Cultural aspects: Mx – North AmericaNationalism


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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

Cultural aspects: Mx – North AmericaSocial protocols - Status


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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

Cultural aspects: Mx – North America


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Mexico

Romantic, artistic, enjoy music and mystic elements

In business situations, ceremonies and social recognition is very important

Cultural aspects: Mx – North AmericaStyles


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For doing business in Mexico:

First recommendation:

Work to win people trust

Second recommendation:

Be aware of creating “unreachable” expectations about business ideas

Cultural aspects: Mx – North America


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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

[email protected]


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