Closed Circuit Communications LLC.

1. Mexico …. in Closed Circuit Communications LLC. A presentation by: Copeland Felts | Adam Rigoni | Elise Dawkins | Leonard Felton | Kenyarda Wesley | Maja Ehses

2. Geography Middle America, bordering the Caribbean sea and the Gulf of Mexico, between Belize and the US and bordering the North Pacific Ocean, between Guatemala and the US. MajaEhses

3. Official Name: Estados Unidos Mexicano (United Mexican States) Capital: Mexico City Population: 110,915,00 76% Urban-26% Rural Major Exports: Electrical michinery, motor vehicles, telecommunication equipment Major Imports: Electic (equipment), industrial machinery, motor vehicles Trade with China, Germany, Japan, and U.S Geography Leonard Felton

4. Government http://www.mexicolaw.com/LawInfo31.htm#Government http://voices.yahoo.com/the-united-states-vs-mexico-differences-similarities-3921250.html?cat=9 Kenyarda Wesley

5. Government Cont. • The Federal government of Mexico and the governments of each of the states of Mexico operate on three branch system: Executive, Legislative and Judicial. • The legal system is Mexico provides for Federal Laws and State laws. There is a Federal Constitution and a state constitution for each of the states of Mexico. Laws and regulations are created by: decisions made in the legislative branch of government, by decrees of the President and by jurisprudence created by the federal court Kenyarda Wesley

6. Education • Mathematical literacy- 27th out of 27 (US- 18th) • Scientific Literacy- 27th out of 27 (US-14th) • Reading Literacy- 27th out of 27 (US- 15th) • Top 100 Universities- 1 (compared to 31 in the US) • Average years of schooling- 7.1 (35th in the world) This data was gathered by the Organization for Economic Co-operation and Development http://www.nationmaster.com/ Adam Rigoni

7. What’s the Market Like? • Mexico generally lives by the Traditional Fixed Market system in which people sell mostly home-grown and/or homemade goods in government provided market settings. Leonard Felton

8. Greeting and CultureIn Mexico: • Understanding the Cultural differences between the US & Mexico is very important • Respect is very important in the Mexican culture • Using only first name is disrespectful. “Hola Senor Perez” conveys respect. • Business greeting- proper practice is a handshake, regardless of gender. “Please and Thank you” are used frequently. Elise Dawkins

9. Greeting and Culture cont. • Mexicans dress formally for business meetings with suits and ties, exception to the rule is meeting in very hot region, a port or beach resort. • Time - Mexicans are customarily late 15-30minutes more or less. Elise Dawkins

10. Issues and Obstacles • PROSOFT- set up by Mexican government in 2002 in order to strengthen country’s IT sector (potential area for economic development) Benefits of program: • IT firms established in Mexico can receive cash grants up to 50% of the total cost of their project • tax credit of up to 30 % of the total R&D expense Adam Rigoni

11. Issues Continued… • Nearly 500,000 IT professionals in Mexico • Close to 65,000 new IT professionals graduating from universities or technical schools each year • The World Bank rank Mexico as one of the top two countries in Latin America where it is easiest to conduct business • IT industry has almost doubled it’s production since 2005( 5.99 billion(2005) to 10.87(2009)) • http://www.mexico-it.net/index.php?option=com_content&view=category&layout=blog&id=2&Itemid=4 Adam Rigoni

12. Obstacles • Drug war forced 160,000 businesses to close in 2011 • Has created a fear for foreign investment • If we decide to expand: • Must maintain a proper security system • Gated workplace • Possibly hire armed guards • http://www.rawstory.com/rs/2012/04/04/organized-crime-blamed-for-160000-business-closures-in-mexico-in-2011/ Adam Rigoni

13. Economic Data • GDP per capita: $13,900(est. 2010) • About 1/3 of U.S. GDP per capita • GDP-composition by sector: agriculture- 3.9%, industry- 23.9%, services-62.9% • Unemployment rate- 5.4% • Exchange rate: 12.687 Mexican pesos per 1 US dollar http://www.indexmundi.com/mexico/economy_profile.html Adam Rigoni

14. What’s our Venture? Closed Circuit Communications: • Provide networks for growing businesses • Maintain a user friendly operating system • Allows businesses the room and the power to grow Copeland Felts

15. Language • The official language in Mexico is Spanish. The government recognizes 68 distinct indigenous Amerindian languages as national language in additional to Spanish. • 80% of those Mexicans who speak an indigenous language also speak Spanish. • The most important of the Native American language is NAHUATL. MajaEhses

16. Before and during a meeting:(Nonverbal Behavior) • All your written material has to be available in Spanish and English. • If you do not speak Spanish, hire an interpreter. • Agendas are not common. • Mexicans seen Deadlines as flexible. • Negotiations will include a fair amount of haggling. Never give your best offer first. • Better not include an attorney on your negotiating team. MajaEhses

17. Continued… • Mexicans are talking more with their body language then Americans. • Mexicans tend not to make direct eye contact as a sign of respect. • Mexicans like business Cards. • It is advisable to have one side in Spanish. • It should contain your professional and educational qualifications. • Dress for a meeting: • Men: conservative, dark colored suits • Women: business suits or conservative dresses. MajaEhses

18. Authority • Mexicans business is highly stratified and vertically structured. • Mexicans emphasize hierarchical relationship. • They respect authority and look to those above them for guidance and decision-making. • The person above you in rank must always be treated with respect. • Mexicans are very aware of how each individual fits into each hierarchy- be it family, friends or business. MajaEhses

19. Concept of Time • Be on Time! • Appointments are required and should be made at least 2 weeks in advance. • Reconfirm an appointment one week before the meeting. • Its recommended to reconfirm the appointment again once you arrive in Mexico. • Only your Mexican business associates may be up to 30 minutes late! Not YOU! • Bring a lot of time. You must be patient. Business meetings will run at a slower pace. It will take a few meetings to come to an agreement.The word “manane” (morning or tomorrow) is closely linked with the Mexican Concept of time and it means later. MajaEhses

20. Environment and Technology • Main Industries: Electronics, Foods, Tobacco, Chemicals, Iron and Steel, Petroleum, Mining, • Textiles, Clothing, Motor vehicles, Consumer durables, Tourism, • Exports: $298.5 billion • Export Goods: to Canada and Russia • Automobiles, Electronics, Television, computers, mobile phones, LCD displays, Oil and Oil products, Silver, Fruits, Vegetables, Coffee, Cotton. MajaEhses

21. Continued… • Imports: $ 301.5 billion • Import Goods: from US, China, South Korea • Metalworking machines, Steel mill products, Agricultural machinery, Metals, Repair parts for motor vehicles, Aircraft and aircraft parts, Oil production equipment. • Mexicans have been more ambivalent toward the use of technology than the USA. • Mexicans, particularly, are more likely to see themselves as subject to the forces of nature around them. • Mexican’s pollution and other environmental problems have brought the cost of rapid industrialization. • Mexico is increasing rapidly in their technology standards. MajaEhses

22. Social Organization • Family ties are stronger than the in the United States. • Every single person is really important in a family. • A Mexican Manager is likely to respond first for a self-description with the fact that he or she is a member of the families of his or her father, mother, and spouse. • Family ties provide access to business. • Hiring of relatives is more common than in the US. • The relatives one employs are likely to work harder and be more dedicated than strangers. • Women becoming more important in business the last years. MajaEhses

23. Comparing Business Practices Mexico United States • Language-Spanish • Trust plays a very important role in establishing a business relationship. • Much time is spent discussing general topics, waiting for the final moment to bring up the matter at hand. • Business meetings begins slowly, gentle and compromising , then warms up to the main point. • Language- English • While trust is important a professional relationship and professional competence or experience is better recognized. • In the US “every second counts” • Start a meeting by introducing themselves, the topic at hand and get to the meet of the matter. Elise Dawkins

24. Comparison Continued Mexico • Mexican business day starts at 9:00-7:00pm • Two very long lunch periods between 2:00 pm and 4:00pm • Regard for time- not strict with appointment, approximates time of delivery etc. United States • Business hours 8:00am-4 :00pm or 9:00-5:00pm • Lunch 12 noon -1:00pm • Regards appointments and interprets tardiness as a clue to the type of business person you are. Elise Dawkins

25. Comparison continued Mexico • Phone calls-difficult to make contact with the executive. • Cellular phones are very important in Mexico. • Poor at returning calls , they believe that if If’s important the person will call back. • Business deals may be closed between friends over a business meals. • Typical time is 9:00pm United States • Business executives depends on secretary to make connections. • Less cellular phone contact is equally important for business contact. • Communicates with emails a lot. • Us- typical times for a business meal, at 8:30 am, 12noon, or 6:00-7:00pm. Elise Dawkins

26. Comparison continued • Mexico-eg.9/8/06 means August 9, 2006. • Transportation- its recommended to use obviously professional transportation services. • In Mexico City, driving a car is limited to three workweek days- due to pollution. • Us-9/8/06 means September 8,2006. • Business executives may use a private or public transportation in the US. • In the US there is no restrictions to transportation due to pollution . Elise Dawkins

27. Pros • Good, Authentic Food? Elise Dawkins

28. Pros • Mexico offers plenty of job opportunities in the workforce. • 9th economy in the world as GNP and 1st in Latin America. (34% comes from exports) • 84% of their trading is done with the U.S. Leonard Felton

29. Cons • Mexicans tend to invert phrases eg.” The budget of my company we have for 2006.” • In the US we say “We now have the 2006 budget for my company completed.” • “No”, Could be interpreted negatively. • They may use “no” at the end of a sentence meaning isn’t it. • Voice mail systems are often labeled Hispanic unfriendly. • Hiring- must see a lawyer first. There are rigid rule about hiring and firing. • Internet sales in general have not done as well in Mexico. • Mexicans has many holidays and does a lot of partying, therefore any one doing business in Mexico should be very aware of these dates. Elise Dawkins

30. Current Events • July Election of new president to replace Felipe Calderon. • Critical point that could lead to the defeat of the Cartels http://www.youtube.com/watch?v=E360wUG3BLs Copeland Felts

31. Our Decision? Due to the need of advanced, up-to-date, and reliable network systems; and also the need for a more technically advanced culture; we vote: NO on the matter of operating in Mexico. Copeland Felts

32. Other resources: • http://www.doingbusinessinmexico.com/articulos/articulo.php?articulo_id=66 • http://geography.howstuffworks.com/mexico/geography-of-mexico.htm • www.worldbusinessculture.com/business-in-mexico.html • www.cyberlink.com/besite/mexico.html • Library.thinkquest.org • www.earthyfamily.com/mexico-culture.html