BIENVENIDOS A

MÉXICO!

WELCOMETO

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 Population116,220,947 (July 2013 est.)Mexico City (Capital) – 19.319 millionGuadalajara – 4.338 milionMonterrey – 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

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

4. SOCIETY& CULTURE

Language Spanish as official language.

Mexican-Spanish as daily language. Indian language (Nahuatl) as origin

language.

IconMexican national culture is the Virgin 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

C o rp o rate C u ltu re

• 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.

C o rp o rate C u ltu re

• 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.

Especially for Women

5. LEGAL SYSTEM

5. LEGAL SYSTEMMexico 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. Legislativeb. Executivec. 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