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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
México • Country extension: 1 964 375 km² • # 14 world place in country extension • Population over 100 million people
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
* 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
Cultural aspects Culture: • Culture defines people identity, roots, behaviors and personal development vision • 50% of international businesses does not concrete because of cultural problems
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:
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
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
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
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
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
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
Mexico Romantic, artistic, enjoy music and mystic elements In business situations, ceremonies and social recognition is very important Cultural aspects: Mx – North AmericaStyles
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
Doing business in Mexico Sources of information
Sources of information • Review the following web pages: http://www.contactopyme.gob.mx http://www.siem.gob.mx/portalsiem/
Exporting to México • Review the following web pages: http://www.aduanas.gob.mx/ http://www.economia.gob.mx/
Thank you! Jorge Franco franco@itesm.mx