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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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Doing business in mexico

DOING BUSINESS IN MEXICO



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