doing business in mexico. mexico fear of the unknown –language, culture –export paperwork...
TRANSCRIPT
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DOING BUSINESS IN MEXICO
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Mexico
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Mexico
• Fear of the unknown– Language, culture– Export paperwork– International Insurance, Business Loans
• Budget
• Market entry
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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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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.
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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
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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
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Expressways
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Mode of Entry
• Exporting– Direct & Indirect
• Joint Venture– Licensing & Franchising– Management Contracts– Turn-key projects– Ownership arrangements
• Foreign Direct Investment
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Challenges/Success Factors
• Foreigner• Language Barrier• Work approach• Relationships
• Perception Skills: blending in
• Few words• Access to high
levels & business etiquette
• Networking
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Mexican Flag
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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
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Business Savvy
• Initial contact with key decision maker
• Networking: opens doors
• Chambers
• Government contacts
• Before: Research & Recommendations
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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
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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
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Business Savvy
• Broker/Representative– Familiar with your market– Not exclusive
• Master distributor– One client, large shipments– One more on his list?
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Business Savvy
• Joint venture– Ownership position in your business– Finding Mr. Right
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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
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Business Protocol
NAME
• Maiden– María (Elena) Gómez Ramírez
• Address– Lic. Gómez / Srita. Gómez
• Married– María Elena Gómez de Rodríguez
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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
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Business Protocol
ETIQUETTE
• Personal space closer
• Touching, hugging, kissing
• Louder
• Hand gestures
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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
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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