Reporte

Nombre: Matrícula:
Victor Antonio Moreno Quiroga 2869724

Nombre del curso: Nombre del profesor:

International Environments and Efrain Antonio Lara Tinajero
Business Operations
Módulo: Actividad:
2 Term Project Part 3
Fecha: 2/27/2018
Bibliografía:
Tecmilenio 2019

https://miscursos.tecmilenio.mx/ultra/courses/_144240_1/cl/outline

DOING BUSINESS IN MEXICO: UNDERSTANDING MEXICAN BUSINESS CULTURE &

ETIQUETTE
https://www.acrecent.com/doing-business-in-mexico-understanding-mexican-business-culture-
etiquette/
SANTANDER MEXICO: LEGAL ENVIRONMENT
https://en.portal.santandertrade.com/establish-overseas/mexico/legal-environment

1. The analysis of the current Mexican business environment for the industry you chose
(the fictitious company).
a) The Mexican political system (corruption and transparency).
Mexico scored 34 out of 100 in Transparency International’s 2013 Corruption
Perceptions Index, political parties and unions, civil society organizations, corporations,
and individuals who receive tax-payers’ money or public funds are obliged to deliver
information; this is in addition to the government, congress and the judiciary.

b) The Mexican economic system and how it relates to that specific industry.
The economy of Mexico is the 15th largest in the world in nominal terms and the 11th
largest by purchasing power parity. In the companies case, it will be very easy to grow
do to the fact that the economy will be able to provide the company’s needs.

c) The Mexican legal system and government regulations that apply to that industry.
The Federal Constitution is the most important political document in Mexico. It is the
source and origin for all Mexican law. The hierarchy of sources of law in the civil law
tradition to which Mexico's legal system belongs are, “constitution, legislation,
regulation, and custom.”
With this law, it will be possible to run the company with transparency and legally.

d) Foreign direct investments in Mexico (how they work and how big it is).
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Mexico is one of the emerging countries most open to foreign direct investment, the
world’s fifteenth largest FDI recipient; also, it is a member of NAFTA, OECD, G20
and the Pacific Alliance.

e) How is the Mexican peso doing? An analysis of the current picture around it.

“For all the concern that the U.S. might dump Nafta or that Mexico’s president could
upend economic policy, the peso is forecast to be the world’s best-performing major
currency in the first half of 2018.”
Mexico's Peso Is Expected to Make a Big Comeback
By Eric Martin and Justin Villamil

f) Mexico’s culture (including the workplace).

2. Mexicans do business with friends. If they feel uneasy around you, chances are you
won’t be closing any deals.
3. To develop relationships, be warm and friendly. Ask your Mexican counterparts about
their family, friends, customs, hobbies, etc.
4. Use intermediaries when necessary to make personal connections.
5. Business in Mexico is done in person, not over the phone or email.
6. Meetings usually start with small talk about family, the weather, etc.
7. Do not refuse drinks (usually coffee) offered to you during the meeting.
8. Being direct and to the point may be perceived as rude or aggressive. Be gracious and
polite.
9. Because relationships come first, negotiations tend to move slowly.
10. Meetings typically are slow-paced, often going off topic.
11. Hierarchy is important. Big decisions are made by top executives, and they expect to
do business with same-level executives not with low-level representatives.
12. Appearances matter—your clothes, jewelry, hotel accommodations, etc.

a) Relevant environmental regulations.

Creation of the LGEEPA, the law addresses a broad range of environmental matters
including water, air and ground pollution, resource conservation, and environmental
enforcement.

b) Mexican employment practices, minimum wage and the role of labor unions.
According to the Bureau of Labor Statistics (BLS), the average private-sector union
member earns $917 a week or $23 an hour full-time, about 50 percent more than the
 Reporte
$15 minimum wage unions are fighting for. But on closer inspection, the union payoff
is clear

c) Mexico’s trade policy details that are relevant to that industry (tariffs, subsides, import
quotas, antidumping duties).
Mexico is an active member of NAFTA, World Trade Organization (WTO), the Asia-
Pacific Economic Cooperation (APEC), the G-20, and the Organization for Economic
Cooperation and Development (OECD). Mexico has more free trade agreements (FTAs)
than any other country in the world, 12 FTAs with 46 countries.

1. Summary of relevant free-trade agreements with other countries.

Mexico has had a growing commitment to trade integration and liberalization through the
formation of free trade agreements (FTAs) since the 1990s, and its trade policy is among the
most open in the world. Mexico’s pursuit of FTAs with other countries not only provides
economic benefits but could also potentially reduce its economic dependence on the United
States. Mexico has a total of 11 free trade agreements involving 46 countries.
The slow progress in multilateral trade negotiations may also contribute to the increasing
interest throughout the world in bilateral and regional free trade agreements under the WTO.

2. The analysis of the environments that prevail in the regional/national market(s) that

the Mexican PyME is trying to reach.

1. Its political system (corruption and transparency).

Facing the political system with the PYME is not that difficult. Since the PYME is a
nutritional office, where it must be transparent is with its prices and giving the client the
correct information needed.

2. Its economic system and how it relates to that specific industry and Mexico.
The PYME is located is a high economic area therefore, it will be high on clients. Now,
clients are very special on where they decide to attend, PYME owners must invest on
their business so it can look attractive.

3. Its legal system and the set of regulations that apply to that industry and to Mexican
companies.
Patent, industrial property law, trademark , Law of Industrial property

4. How foreign direct investments (FDI) work in that country.

Foreign Direct Investment in Mexico increased by 5029.80 USD Million in the fourth
quarter of 2018. Foreign Direct Investment in Mexico averaged 2701.14 USD Million
from 1960 until 2018, reaching an all time high of 21154.60 USD Million in the second
quarter of 2013 and a record low of -63.90 USD Million in the second quarter of 1960.

5. How is their currency doing nowadays? An analysis of the current picture around it.
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“For all the concern that the U.S. might dump Nafta or that Mexico’s president could
upend economic policy, the peso is forecast to be the world’s best-performing major
currency in the first half of 2018.”
Mexico's Peso Is Expected to Make a Big Comeback
By Eric Martin and Justin Villamil

6. The culture of that country/region.

The culture in the region is different from the rest. The metropolitan city is full of life,
expanding in it economy very rapidly.

7. Relevant environmental regulations that the Mexican PyME might face.

Since the Mexican PyME is only a nutritional office, it does not face any environment
regulations

8. Their employment practices, minimum wage, HR intelligence, and the role of labor
unions.

According to the Bureau of Labor Statistics (BLS), the average private-sector union
member earns $917 a week or $23 an hour full-time, about 50 percent more than the $15
minimum wage unions are fighting for.

9. Their trade policy towards Mexico (tariffs, subsides, import quotas, antidumping duties).
Mexico joined the GATT in 1986 and has since been an active and constructive
participant in the multilateral trading system (WTO) and particularly the Doha
Development Round. Mexico is signatory of the GATS; is a member of the Asia-Pacific
Economic Cooperation (APEC) and the G20. By joining the Trans-Pacific Partnership
(TPP), Mexico seeks to deepen its economic integration with the Asia-Pacific Region and
strengthen its insertion into the global value chains.