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DOING BUSINESS IN MEXICO. Mexico. Mexico. Fear of the unknown Language, culture Export paperwork International Insurance, Business Loans Budget Market entry. Mexico. 102 million people 1.7% population growth per year 62% pop between 15-64 years 33% pop between 0-14 years.

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Presentation Transcript
mexico1
Mexico
  • Fear of the unknown
    • Language, culture
    • Export paperwork
    • International Insurance, Business Loans
  • Budget
  • Market entry
mexico2
Mexico
  • 102 million people
  • 1.7% population growth per year
  • 62% pop between 15-64 years
  • 33% pop between 0-14 years
the mexican market
The Mexican Market
  • Why is it important?
    • 2 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 market1
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 market2
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
mode of entry
Mode of Entry
  • Exporting
    • Direct & Indirect
  • Joint Venture
    • Licensing & Franchising
    • Management Contracts
    • Turn-key projects
    • Ownership arrangements
  • Foreign Direct Investment
challenges success factors
Foreigner

Language Barrier

Work approach

Relationships

Perception Skills: blending in

Few words

Access to high levels & business etiquette

Networking

Challenges/Success Factors
doing business in mexico1
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
Business Savvy
  • Initial contact with key decision maker
  • Networking: opens doors
  • Chambers
  • Government contacts
  • Before: Research & Recommendations
business savvy1
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 savvy2
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 savvy3
Business Savvy
  • Broker/Representative
    • Familiar with your market
    • Not exclusive
  • Master distributor
    • One client, large shipments
    • One more on his list?
business savvy4
Business Savvy
  • Joint venture
    • Ownership position in your business
    • Finding Mr. Right
business protocol
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 protocol1
Business Protocol

NAME

  • Maiden
    • María (Elena) Gómez Ramírez
  • Address
    • Lic. Gómez / Srita. Gómez
  • Married
    • María Elena Gómez de Rodríguez
business protocol2
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 protocol3
Business Protocol

ETIQUETTE

  • Personal space closer
  • Touching, hugging, kissing
  • Louder
  • Hand gestures
business protocol4
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 protocol5
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
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