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DOING BUSINESS IN MEXICO

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

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  1. DOING BUSINESS IN MEXICO

  2. Mexico

  3. Mexico • Fear of the unknown • Language, culture • Export paperwork • International Insurance, Business Loans • Budget • Market entry

  4. Mexico • 102 million people • 1.7% population growth per year • 62% pop between 15-64 years • 33% pop between 0-14 years

  5. 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.

  6. 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

  7. 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

  8. Expressways

  9. Mode of Entry • Exporting • Direct & Indirect • Joint Venture • Licensing & Franchising • Management Contracts • Turn-key projects • Ownership arrangements • Foreign Direct Investment

  10. Foreigner Language Barrier Work approach Relationships Perception Skills: blending in Few words Access to high levels & business etiquette Networking Challenges/Success Factors

  11. Mexican Flag

  12. 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

  13. Business Savvy • Initial contact with key decision maker • Networking: opens doors • Chambers • Government contacts • Before: Research & Recommendations

  14. 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

  15. 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

  16. Business Savvy • Broker/Representative • Familiar with your market • Not exclusive • Master distributor • One client, large shipments • One more on his list?

  17. Business Savvy • Joint venture • Ownership position in your business • Finding Mr. Right

  18. 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

  19. Business Protocol NAME • Maiden • María (Elena) Gómez Ramírez • Address • Lic. Gómez / Srita. Gómez • Married • María Elena Gómez de Rodríguez

  20. 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

  21. Business Protocol ETIQUETTE • Personal space closer • Touching, hugging, kissing • Louder • Hand gestures

  22. 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

  23. 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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