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BIENVENIDOS
A
MÉXICO!
WELCOME
TO
MEXICO!
1. BACKGROUND
 Official name of Mexico is:
 Estados Únidos Mexicanos
(United Mexican States)
 Founded in 1325 by the Mexica
people
 Known as the Aztecs.
 In 1521, Hernán Cortés
conquered the Aztecs and
Mexico was colonized by Spain.
 Independence from Spain:
 Declared September 16,
1810
 Recognized September
27, 1821
Modern Mexico
11th largest country in the world
Current Population
116,220,947 (July 2013 est.)
Mexico City (Capital) – 19.319 million
Guadalajara – 4.338 milion
Monterrey – 3.838 million
Currency: Mexican Peso
$1USD = MEX$12.29
Federal Republic state in North America
 President and the Cabinet
31 states + 1 Federal District Executive
(Mexico City)
 Congress of the Union
Senate & Chamber of Deputies Legislative
 Supreme Court of Justice
Chief Justice Judiciary
Border North US
East Gulf of Mexico
South & West Pacific Ocean
Southeast Guatemala & the Caribbean
North America & Administrative of Mexico
2. POLITICS
POLITICS : BACKGROUND
A DEMOCRATIC REPUBLIC
BASED ON FEDERAL PRESIDENTIAL REPRESENTATIVES
THE PRESIDENT IS BOTH HEAD OF STATE AND HEAD OF
GOVERNMENT
DIVIDED INTO 3 BRANCHES :
- EXECUTIVES
- LEGISLATIVE
- JUDICIAL
POLITICS : BACKGROUND
 EXECUTIVES :
 LEAD BY THE PRESIDENT
 IN CHARGE OF ALL TYPES OF CRUCIAL POLITICAL DECISION
 LEGISLATIVE:
 CONSISTS OF BICAMERAL CONGRESS
 DIVIDE INTO UPPER AND LOWER CHAMBER
 POWERS : PASS LAWS, IMPOSE TAXES, APPROVE NATIONAL
BUDGET, TREATIES ETC.
 JUDICIAL :
 DIVIDED INTO FEDERAL DAN STATE SYSTEM
 BASED ON SPANISH CIVIL LAW
POLITICS
 DOMINATED BY 3 POLITICAL PARTIES :
 NATIONAL ACTION PARTY ( PAN )
 PARTY OF DEMOCRATIC REVOLUTION (PRD)
 INSTITUTIONAL REVOLUTIONARY PARTY ( PRI )
CURRENT POLITICS SCENARIO
PRESIDENT :Enrique Peña Nieto
Institutional Revolutionary Party (PRI)
SINCE 2012
Mexico complete for presentation
3. ECONOMY
ECONOMY OF MEXICO
 The economy of Mexico is the 14th largest in the and the
10th largest by purchasing power parity, ( World Bank )
 As an export-oriented economy, more than 90% of Mexican
trade is under free trade agreements (FTAs) with more than
40 countries, including the European Union, Japan, Israel,
and much of Central and South America. The most influential
FTA is the North American Free Trade Agreement (NAFTA),
which came into effect in 1994, and was signed in 1992 by
the governments of the United States, Canada and Mexico.
 Mexico's labor force is 78 million. The OECD and WTO both
rank Mexican workers as the hardest-working in the world in
terms of the amount of hours worked yearly, although
profitability per man-hour remains low
Mexico complete for presentation
Mexico complete for presentation
Mexico complete for presentation
Mexico complete for presentation
Mexico complete for presentation
Mexico complete for presentation
Mexico complete for presentation
Mexico complete for presentation
Mexico complete for presentation
Mexico complete for presentation
Mexico complete for presentation
Mexico complete for presentation
Mexico complete for presentation
4. SOCIETY& CULTURE
Language
Spanish as official language.
Mexican-Spanish as daily language.
Indian language (Nahuatl) as origin language.
Icon
Mexican national culture is theVirgin of
Guadalupe, which illustrates the pervasive
influence of Roman Catholicism in the national
culture
 Hierarchical Society
 Highly stratified and vertically structure
 Respect authority and look to those above
for guidance and decision making
 Rank is important
 It would be disrecpectful to break the
chain of hierarchy
Hierarchical Society
 Greetings
 No first name basis, greet by title
 Arquitecto (Architect)
 Abogado (Lawyer)
 If no title, address by
 Señor (Mr.)
 Señora (Mrs.)
 Señorita (Miss)
 Firm handshake and direct eye contact
 Business cards
 Print in Spanish and make sure title is
included
 Physical contact
 Minimal personal space
 Handshake with kiss on one cheek
 Time
 Common to arrive 30 minutes late
Meeting Etiquette
Corporate Culture
• Punctuality is expected of foreign business people. Your
Mexican counterpart may be late or keep you waiting. Thirty
minutes past the scheduled meeting time is considered
punctual by Mexicans.
• Spanish is the language of business. You may need to hire an
interpreter (preferably a native speaker who understands the
language as it is spoken in Mexico).
• Meet with top executives first. Top-level Mexican executives
may not attend subsequent meetings, which often take place
with middle-level management and technical people. Don't
feel insulted; this shows that discussions are proceeding
positively.
• Negotiations move slowly. Be patient. For Mexicans, the
building of a personal relationship comes before the building
of a professional one.
Corporate Culture
• Deal-making almost never occurs over the phone (and rarely by
letter). Mexicans prefer to do business in person.
• Your local contact person or representative is very important
and should be chosen very carefully. A low-level representative
will be taken as an affront by status-conscious Mexicans, who
will assume that you are not really serious.
• Be persistent! Don't give up if you don't receive a response to
your phone calls or letters right away or if your meetings are
continually postponed or canceled. If you give up, your
Mexican counter parts might assume that you weren't serious
in the first place.
• Women should prepare for some difficulty when doing
business in Mexico. Because some Mexican businessmen
may not have had many dealings with women in
positions of authority, you should demonstrate your
competence, skill and authority.
• Mexican men, business colleagues included, will pay
foreign businesswomen many compliments and may
even be flirtatious.
• Foreign businesswomen should not invite Mexican
businessmen to dinner unless their spouses also come
along. If invited out to dinner or to socialize by a male
Mexican colleague, a businesswoman should make it
clear that no opportunity for romance exists.
• Appearances are important.
Mexico complete for presentation
5. LEGAL SYSTEM
5. LEGAL SYSTEM
Mexico has a “civil law” legal system
The application of the law is based on a codification of the laws
and legal principles.
Most of Mexico’s civil law comes from the French Civil Code,
known as Napoleonic code.
The Mexican constitution divides federal power into three
baranches:-
a. Legislative
b. Executive
c. Judicial
Mexico is republic and has a federal system. The country
comprises 31 states, each of which independently regulates its
citizens by State Constitution, Civil Codes, Codes of Civil
Procedures, Penal Code and Penal Procedures Code.
In the Mexican legal system, civil law regulates the civil relations between
individuals,, their marital status, the organization of the family, legal capacity, the
status of personel and real property and civil contracts
Civil law can be divided into five categories that is person, goods and property,
successions and inheritance, obligation and contract
The Civil Code (Codigo Civil) in Mexico is the backbone of the entire legal system.
Basic legal Principle
- men and women are equal in the eyes of the law
- a foreigner in Mexico is generally free to do whatever he likes as long as he does
not violate the law or public interests.
-Ignorance of the law is not an excuse for disobeying it.
- The scope of application of Mexican Law is limited to anyone within Mexican
territory as well as any events that occur within Mexican territory.
The only exception to this rule are cases that are subject to foreign law by treaties
with Mexico, or cases that expressly stipulate that foreign law would apply.
6. TECHNOLOGY
TECHNOLOGY
 Mexico is currently one of the fastest growing economies in
Latin American and a regional leader in science and
technology programs.
 Overall investment in science and technology programs
remains low with its annual investment in research and
technology development at 0.31% of it GDP. This is
comparatively low to other developing nations such as China
(0.7%), Brazil (0.8%), and India (0.8%).
 According to the World Bank, Mexico is Latin America's
largest exporter of high-technology goods (High-technology
exports are manufactured goods that involve high R&D
intensity, such as in aerospace, computers, pharmaceuticals,
scientific instruments, and electrical machinery) with $40.7
billion worth of high-technology goods exports in 2012.
Mexican high-technology exports accounted for 17% of all
manufactured goods in the country in 2012 according to the
World Bank
 Special Program on Science & Technology (2001- 2006)
TECHNOLOGY
 The electronics industry of Mexico has grown enormously within the last
decade. In 2007 Mexico surpassed South Korea as the second largest
manufacturer of televisions, and in 2008 Mexico surpassed China, South
Korea and Taiwan to become the largest producer of smartphones in the
world. There are almost half a million (451,000) students enrolled in
electronics engineering programs.
 Microsoft has inaugurated its first technology center in Mexico , Microsoft
Technology Center ,a facility that will be used to train around 2,300 software
developers.
 The MTC-Mexico City is the company's first Spanish-language technology
center and the first of its kind in Latin America,
 Mexican born Scientist working in United States
7. SUMMARY
SUMMARY
MEXICO ACHIEVEMENTS
 THE EASIET COUNTRY TO DO BUSINESS AMONG LATIN AMERICA - (WORLD BANK
2013)
 WORLD’S 14TH LARGEST ECONOMY ( IMF 2013 )
 ONE OF THE MOST OPEN ECONOMY ; 60 % OF GDP
 CASH RESERVES : US 166 BILLION ( CENTRAL BANK OF MEXICO )
 MAINTAIN FISCAL DEFICIT OF 2 %
PROBLEM & ISSUES
 KNOWN FOR ITS DRUG CARTELS
 POLITICAL ISSUES
 CORRUPTION
 INFORMAL SECTOR
 NATURAL DISASTERS
 CLOSE INTEGRATION WITH U.S. MARKET
HOW MEXICO TACKLE THE ISSUES
POLITICALLY :
 3 MAIN POLITICAL PARTIES SIGNED AGREEMENT TO FIGHT MONOPOLY; “ PACT
FOR MEXICO “
 ENTIRE MEXICO SUPREME COURT WERE REPLACED.
 FIRST ELECTION FOR MEXICO CITY’S MAYOR SINCE 1928
SOCIETY :
 REFORM ITS EDUCATION :
- BREAK TEACHERS UNIONS CONTROL OF SCHOOL STAFFING
TECHNOLOGY :
 REFORM ITS TELECOMMUNICATION :
- BREAK THE MONOPOLY OF AMERICA MOVIL
- ESTABLISHED A TELECOM REGULATORY BODY TO MONITOR THE SECTOR
HOW MEXICO TACKLE THE ISSUES
ECONOMY :
 PRIVATIZED MORE THAN 100 STATE OWN ENTERPRISE
 JOINED NAFTA IN 1992 ; HAVE ACCESS TO U.S & CANADA MARKET
 NEGOTIATE LOAN FROM U.S AND I.M.F TO STABILIZE ECONOMY
 BOOST ITS SME BY LOAN GUARANTTEE PROGRAM
 ENERGY REFORM : LIBERALIZE ITS ENERGY SECTOR
FINAL CONCLUSION :
MEXICO HAS THE POLITICAL WILL TO REFORM

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Mexico complete for presentation

  • 3.  Official name of Mexico is:  Estados Únidos Mexicanos (United Mexican States)  Founded in 1325 by the Mexica people  Known as the Aztecs.  In 1521, Hernán Cortés conquered the Aztecs and Mexico was colonized by Spain.  Independence from Spain:  Declared September 16, 1810  Recognized September 27, 1821
  • 4. Modern Mexico 11th largest country in the world Current Population 116,220,947 (July 2013 est.) Mexico City (Capital) – 19.319 million Guadalajara – 4.338 milion Monterrey – 3.838 million Currency: Mexican Peso $1USD = MEX$12.29
  • 5. Federal Republic state in North America  President and the Cabinet 31 states + 1 Federal District Executive (Mexico City)  Congress of the Union Senate & Chamber of Deputies Legislative  Supreme Court of Justice Chief Justice Judiciary Border North US East Gulf of Mexico South & West Pacific Ocean Southeast Guatemala & the Caribbean
  • 6. North America & Administrative of Mexico
  • 8. POLITICS : BACKGROUND A DEMOCRATIC REPUBLIC BASED ON FEDERAL PRESIDENTIAL REPRESENTATIVES THE PRESIDENT IS BOTH HEAD OF STATE AND HEAD OF GOVERNMENT DIVIDED INTO 3 BRANCHES : - EXECUTIVES - LEGISLATIVE - JUDICIAL
  • 9. POLITICS : BACKGROUND  EXECUTIVES :  LEAD BY THE PRESIDENT  IN CHARGE OF ALL TYPES OF CRUCIAL POLITICAL DECISION  LEGISLATIVE:  CONSISTS OF BICAMERAL CONGRESS  DIVIDE INTO UPPER AND LOWER CHAMBER  POWERS : PASS LAWS, IMPOSE TAXES, APPROVE NATIONAL BUDGET, TREATIES ETC.  JUDICIAL :  DIVIDED INTO FEDERAL DAN STATE SYSTEM  BASED ON SPANISH CIVIL LAW
  • 10. POLITICS  DOMINATED BY 3 POLITICAL PARTIES :  NATIONAL ACTION PARTY ( PAN )  PARTY OF DEMOCRATIC REVOLUTION (PRD)  INSTITUTIONAL REVOLUTIONARY PARTY ( PRI )
  • 11. CURRENT POLITICS SCENARIO PRESIDENT :Enrique Peña Nieto Institutional Revolutionary Party (PRI) SINCE 2012
  • 14. ECONOMY OF MEXICO  The economy of Mexico is the 14th largest in the and the 10th largest by purchasing power parity, ( World Bank )  As an export-oriented economy, more than 90% of Mexican trade is under free trade agreements (FTAs) with more than 40 countries, including the European Union, Japan, Israel, and much of Central and South America. The most influential FTA is the North American Free Trade Agreement (NAFTA), which came into effect in 1994, and was signed in 1992 by the governments of the United States, Canada and Mexico.  Mexico's labor force is 78 million. The OECD and WTO both rank Mexican workers as the hardest-working in the world in terms of the amount of hours worked yearly, although profitability per man-hour remains low
  • 29. Language Spanish as official language. Mexican-Spanish as daily language. Indian language (Nahuatl) as origin language. Icon Mexican national culture is theVirgin of Guadalupe, which illustrates the pervasive influence of Roman Catholicism in the national culture
  • 30.  Hierarchical Society  Highly stratified and vertically structure  Respect authority and look to those above for guidance and decision making  Rank is important  It would be disrecpectful to break the chain of hierarchy Hierarchical Society
  • 31.  Greetings  No first name basis, greet by title  Arquitecto (Architect)  Abogado (Lawyer)  If no title, address by  Señor (Mr.)  Señora (Mrs.)  Señorita (Miss)  Firm handshake and direct eye contact  Business cards  Print in Spanish and make sure title is included  Physical contact  Minimal personal space  Handshake with kiss on one cheek  Time  Common to arrive 30 minutes late Meeting Etiquette
  • 32. Corporate Culture • Punctuality is expected of foreign business people. Your Mexican counterpart may be late or keep you waiting. Thirty minutes past the scheduled meeting time is considered punctual by Mexicans. • Spanish is the language of business. You may need to hire an interpreter (preferably a native speaker who understands the language as it is spoken in Mexico). • Meet with top executives first. Top-level Mexican executives may not attend subsequent meetings, which often take place with middle-level management and technical people. Don't feel insulted; this shows that discussions are proceeding positively. • Negotiations move slowly. Be patient. For Mexicans, the building of a personal relationship comes before the building of a professional one.
  • 33. Corporate Culture • Deal-making almost never occurs over the phone (and rarely by letter). Mexicans prefer to do business in person. • Your local contact person or representative is very important and should be chosen very carefully. A low-level representative will be taken as an affront by status-conscious Mexicans, who will assume that you are not really serious. • Be persistent! Don't give up if you don't receive a response to your phone calls or letters right away or if your meetings are continually postponed or canceled. If you give up, your Mexican counter parts might assume that you weren't serious in the first place.
  • 34. • Women should prepare for some difficulty when doing business in Mexico. Because some Mexican businessmen may not have had many dealings with women in positions of authority, you should demonstrate your competence, skill and authority. • Mexican men, business colleagues included, will pay foreign businesswomen many compliments and may even be flirtatious. • Foreign businesswomen should not invite Mexican businessmen to dinner unless their spouses also come along. If invited out to dinner or to socialize by a male Mexican colleague, a businesswoman should make it clear that no opportunity for romance exists. • Appearances are important.
  • 37. 5. LEGAL SYSTEM Mexico has a “civil law” legal system The application of the law is based on a codification of the laws and legal principles. Most of Mexico’s civil law comes from the French Civil Code, known as Napoleonic code. The Mexican constitution divides federal power into three baranches:- a. Legislative b. Executive c. Judicial Mexico is republic and has a federal system. The country comprises 31 states, each of which independently regulates its citizens by State Constitution, Civil Codes, Codes of Civil Procedures, Penal Code and Penal Procedures Code.
  • 38. In the Mexican legal system, civil law regulates the civil relations between individuals,, their marital status, the organization of the family, legal capacity, the status of personel and real property and civil contracts Civil law can be divided into five categories that is person, goods and property, successions and inheritance, obligation and contract The Civil Code (Codigo Civil) in Mexico is the backbone of the entire legal system. Basic legal Principle - men and women are equal in the eyes of the law - a foreigner in Mexico is generally free to do whatever he likes as long as he does not violate the law or public interests. -Ignorance of the law is not an excuse for disobeying it. - The scope of application of Mexican Law is limited to anyone within Mexican territory as well as any events that occur within Mexican territory. The only exception to this rule are cases that are subject to foreign law by treaties with Mexico, or cases that expressly stipulate that foreign law would apply.
  • 40. TECHNOLOGY  Mexico is currently one of the fastest growing economies in Latin American and a regional leader in science and technology programs.  Overall investment in science and technology programs remains low with its annual investment in research and technology development at 0.31% of it GDP. This is comparatively low to other developing nations such as China (0.7%), Brazil (0.8%), and India (0.8%).  According to the World Bank, Mexico is Latin America's largest exporter of high-technology goods (High-technology exports are manufactured goods that involve high R&D intensity, such as in aerospace, computers, pharmaceuticals, scientific instruments, and electrical machinery) with $40.7 billion worth of high-technology goods exports in 2012. Mexican high-technology exports accounted for 17% of all manufactured goods in the country in 2012 according to the World Bank  Special Program on Science & Technology (2001- 2006)
  • 41. TECHNOLOGY  The electronics industry of Mexico has grown enormously within the last decade. In 2007 Mexico surpassed South Korea as the second largest manufacturer of televisions, and in 2008 Mexico surpassed China, South Korea and Taiwan to become the largest producer of smartphones in the world. There are almost half a million (451,000) students enrolled in electronics engineering programs.  Microsoft has inaugurated its first technology center in Mexico , Microsoft Technology Center ,a facility that will be used to train around 2,300 software developers.  The MTC-Mexico City is the company's first Spanish-language technology center and the first of its kind in Latin America,  Mexican born Scientist working in United States
  • 43. SUMMARY MEXICO ACHIEVEMENTS  THE EASIET COUNTRY TO DO BUSINESS AMONG LATIN AMERICA - (WORLD BANK 2013)  WORLD’S 14TH LARGEST ECONOMY ( IMF 2013 )  ONE OF THE MOST OPEN ECONOMY ; 60 % OF GDP  CASH RESERVES : US 166 BILLION ( CENTRAL BANK OF MEXICO )  MAINTAIN FISCAL DEFICIT OF 2 %
  • 44. PROBLEM & ISSUES  KNOWN FOR ITS DRUG CARTELS  POLITICAL ISSUES  CORRUPTION  INFORMAL SECTOR  NATURAL DISASTERS  CLOSE INTEGRATION WITH U.S. MARKET
  • 45. HOW MEXICO TACKLE THE ISSUES POLITICALLY :  3 MAIN POLITICAL PARTIES SIGNED AGREEMENT TO FIGHT MONOPOLY; “ PACT FOR MEXICO “  ENTIRE MEXICO SUPREME COURT WERE REPLACED.  FIRST ELECTION FOR MEXICO CITY’S MAYOR SINCE 1928 SOCIETY :  REFORM ITS EDUCATION : - BREAK TEACHERS UNIONS CONTROL OF SCHOOL STAFFING TECHNOLOGY :  REFORM ITS TELECOMMUNICATION : - BREAK THE MONOPOLY OF AMERICA MOVIL - ESTABLISHED A TELECOM REGULATORY BODY TO MONITOR THE SECTOR
  • 46. HOW MEXICO TACKLE THE ISSUES ECONOMY :  PRIVATIZED MORE THAN 100 STATE OWN ENTERPRISE  JOINED NAFTA IN 1992 ; HAVE ACCESS TO U.S & CANADA MARKET  NEGOTIATE LOAN FROM U.S AND I.M.F TO STABILIZE ECONOMY  BOOST ITS SME BY LOAN GUARANTTEE PROGRAM  ENERGY REFORM : LIBERALIZE ITS ENERGY SECTOR FINAL CONCLUSION : MEXICO HAS THE POLITICAL WILL TO REFORM

Editor's Notes

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  6. MM Comparison to US: Use first names vs. titles May or may not exchange business cards Give more personal space Meetings tend to start on time Be careful of these potential pitfalls
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