Determine cultural conflicts between Mexico and your home country

26 03 2007

This site will help determine possible cultural conflicts between your home culture and Mexico.

It compares 4 dimensions of cultural differences; Power Distance, Individuality, Uncertainty Avoidance and Masculinity.

From the site: “Welcome to the Intercultural Business Communication tool. This simple online tool offers a great resource for people wanting to get some intercultural business communication tips when working with people from different cultures. All you do is choose your own country and another country and we produce a graph that shows the the major differences between the two cultures. You then get some insightful intercultural business communication tips for working in or with that culture.”

Intercultural Business Communication Tool

It provides a comparison between the countries, and then provides tips in order to reduce or manage this cultural gap.

Very interesting.

Related Links

Intercultural Business Communication Tool – Kwintessential Language and Cultural Specialists

Geerte Hofstede, Cultural Dimensions

Cultural Misunderstanding- it can happen to you

Create great international business relationships





Corruption in Mexico

15 11 2006

Corruption in Mexico.

Quite a bit of interest generated from the piece regarding corruption and bribery in Mexico. Corruption, bribes, mordidas, tips – Doing Business in Mexico

Don Gringo says “Mexico possibly has one of the best governments anyone could buy. And cheap, too.” Catemaco News and Commentary

Bernard Wasow writes in the Globalist “It is no secret that the at law enforcement in Mexico is a “for-profit” business.” Greasing Palms: Corruption in Mexico.

Wide Angle presents a Corruption Chart; How big is Mexico’s problem. Which gives a great state by state overview and comparison of corruption levels in Mexico.

A quote from the page: “According to anti-corruption czar Francisco Barrio, the cost of corruption by government officials and by everyday Mexicans surpassed the amount budgeted for education by more than three percentage points — some 9.5 percent of Mexico’s GDP of $550 billion. Recent studies by the World Economic Forum, an international organization that works to improve worldwide economic conditions, found that the business environment such as rule of law, transparency and corruption were disincentives for foreign investment in Mexico. Corruption, which is often described as a tax, adds to the cost of doing business. The Opacity Index, a study conducted by Pricewaterhouse Coopers, found that Mexico lost $8.5 billion in foreign direct investments in 1999 due to corruption and other suspect legal or economic practices.”

Corruption exists in every country in the world, in politics, in business, in everyday life. In some countries it’s more sophisticated or hidden, in others it’s obvious and required in order to get things done. Mexico is no exception.

People seem to ignore corruption in their own countries, and react with shock and anger to corruption in others.

Depending on where you live in Mexico, what you are trying to do, and who you are dealing with, your experience with corruption and bribery will not echo anyone else.

Evaluation of Mexico, China, Brazil, India or any other country as a potential business location or market should include an analysis of how corruption will threaten and affect your operations, efficiency and bottom line.

Your organization should have a clear understanding of the situation and create a set of rules governing how to deal with the reality and any situations that might arise.

You have to ask and answer the question, “do I want my organization to participate and be involved in corruption and bribery, and at what levels”?

Get advice and information from local businesspeople and consultants on the reality of corruption and bribery. Learn how the culture deals with it, detects it and punishes it before you commit to a strategy, path or action plan.

Related Links

How to do business in Mexico, Parts 1 – 28

Tipping guidelines for Mexico

Doing Business in Mexico – cultural tips

World Corruption Perception Index – 2006

Patience chaos and doing business in Mexico





Corruption, bribes, mordidas, tips – Doing business in Mexico

7 11 2006

There are perceptions and realities associated with bribery and corruption when doing business in Mexico.

Corruption, bribery, “mordidas” (translated as “bites”, but are actually bribes) and tips are part of Mexico and the foreigner’s perception of Mexico.

It’s a difficult subject to address because it involves ethical and moral decisions for the foreign visitor or business person. What is culturally OK in Mexico, may be seen as immoral and corrupt by an individual from another country.

Historically, corruption in Mexico is blamed upon the Spanish conquistadors. While corruption no doubt existed prior to the Spanish conquest, they certainly did institutionalize it in government and throughout the Mexican (and Latin American) culture.

Today corruption, bribery and tipping occur at all levels of Mexican society and at many different degrees. For one reason or another it has become part of daily life. Most of it involves small sums of money, and is thought of as tipping and not as a bribe.

In fact, to eliminate corruption in Mexico overnight is unrealistic and would probably result in chaos. As some Mexican observers have noted, “La mordida” is the grease that makes the system work.

All of the following might occur in Mexico. Which of the following are acts of corruption or bribery? Which are totally unethical, somewhat unethical, and no big deal? Which of these events occurs in your country ?

  • The garbage collectors come by every 2 weeks, rings the doorbell and ask for money for a soft drink, US $1 or $2.
  • While waiting in a long line, someone comes up to you and asks if you would like to avoid the line and be attended right away. It will cost US $ 5 to US $ 10, and save you 2 hours.
  • Your application for a permit/license has been in the government office for several weeks, and no one seems to be able to tell you what is wrong. The secretary asks if you would like to buy a raffle ticket for some organization. After buying the ticket the application suddenly appears.
  • You visit a local political leader and take him to dinner and a theater event to discuss your project.
  • At holiday time, you send gifts to politicians, suppliers and business associates.
  • Your daughter copies exam answers from another student at school.
  • The police stop you for a traffic violation (which may or may not have occurred). They suggest that for US $ 20 or $ 50 you can make it disappear, and you’ll be on your way in 5 minutes.
  • You need government agency approvals for your business project. In order to make sure everything is done correctly, you hire an official in the department as a consultant.
  • You require a zoning change on a piece of land, you invite a government official to participate as an investor in the project, or perhaps give him some shares.
  • Your son or daughter wants to get into a nightclub, the doorman says no. They give him US $ 5 and walk right in.
  • A city inspector finds code violations in your restaurant. A call to a family member, who knows someone, who knows someone, results in the violations being revoked.
  • A drug enforcement agent receives a phone call that tells him to choose between accepting USD $ 20,000 payment this year to let a drug shipment go by unharmed or to have his children shot.
  • Your immigration papers are not quite right. There is a document missing. You are able to convince the official (though words and tears) to “overlook” the situation, no money is exchanged.

Can you live and work in Mexico and not pay bribes? Yes. (I’m lived and worked in Mexico over the past 14 years and have never paid a “mordida” in my private or business life.)

Are bribes necessary for doing business in Mexico? I think it depends on the circumstances. Most business can be done without them. It depends on you, and your evaluation of the situation. There must be certain areas where influence peddling, and “mordidas” are an integral part of the business, and other areas where it’s not required in the least. This is not unique to Mexico.

All Mexican local, state and federal governments and government agencies are not corrupt. In fact, in the past 10 years there have been great advances in transparency in government, including guarantees for the time involved in processing applications and permissions.

Mexican federal public policy and local and state governments have been actively reducing and eliminating institutionalized corruption and penalizing government workers involved in illegal acts. There is still a long way to go before it’s completely eliminated, but there has been a noticeable change in many areas.

Mexico’s poverty, unequal distribution of wealth, history and culture make it difficult to eradicate corruption overnight. Mexico is a country with many laws, but they are not well enforced. It’s similar to the temptation one might feel on the lonely country road at 3:00 AM and confronting a red light…..do you stop…or run through it?

You should develop and hold firm to your own ethical and moral principals in order to live and do business in Mexico. If you don’t do it at home, why would you do it in Mexico?

Your company should have a clear policy about corruption and bribery, and hold to it when doing business in Mexico, or internationally.

If you have any personal experiences or observations about corruption, bribery, mordidas and doing business in Mexico, please write me or comment here.
Related Links

How to do business in Mexico, Parts 1 – 28

Tipping guidelines for Mexico

Doing Business in Mexico – cultural tips

World Corruption Perception Index – 2006

Patience chaos and doing business in Mexico





World Corruption Perception Index 2006 – Transparency International

7 11 2006

Interesting look at perceived corruption worldwide.

Transparency International has released their 2006 index of corruption perception on November 6, 2006.

Mexico lands at number 70 on the list, which puts it close to the middle of the pack out of a total of 163 countries.

Since 1995, Transparency International has published an annual Index of perception of corruption ordering the countries of the world according to “the degree to which corruption is perceived to exist among public officials and politicians“. The organization defines corruption as “the abuse of public office for private gain. ” – excerpt from Wikipedia Corruption Perception Index.

As this index is based on polls, the results are subjective and are less reliable for countries with fewer sources. Also, what is legally defined, or perceived, to be corruption differs between jurisdictions: a political donation legal in some jurisdiction may be illegal in another; a matter viewed as acceptable tipping in one country may be viewed as bribery in another. Thus the poll results must be understood quite specifically as measuring public perception rather than being an objective measure of corruption.

Statistics like this are necessarily imprecise; statistics from different years are not necessarily comparable.” – Wikipedia Corruption Perception Index.

Related Links

Internet Center for Corruption Research

Corruption Perception Index – 2006 (EXCEL)

Transparency International

Wikipedia





Doing Business in Mexico – cultural tips

1 11 2006

When doing business in Mexico you are very likely to see some, or all, of the following during a business trip. It’s part of the Mexican business and social culture.

  • Late arrival for meetings by participants. This might be up to 30 to 45 minutes late.
  • Cancellations at the last minute.
  • Changes in agreed upon plans and agendas.
  • Long lunches or dinners, where business talk is not the major theme.
  • Meetings that seem to go on for a long time before coming to the business issue.
  • People will gesture and use their hands a great deal while speaking.
  • There will be a degree of emotion in business discussions and presentations.
  • People will be very formal and polite.
  • People will sit very close to you when speaking, and often touch your arm or shoulder while talking.
  • Your Mexican partners will not be forth coming and explicit regarding bad news.
  • You will not hear the word NO a lot.
  • Deadlines may not be met for reasons that you don’t understand or don’t believe.
  • Until you establish a social relationship with your Mexican business partners, your business discussions will seem very vague, cold and unsatisfying.
  • Decision-making may be extremely swift or excruciatingly slow. You never will know why.
  • Dinners, parties, weddings and social gatherings last for hours. There is no such thing as a 2 hour cocktail party.
  • You will be encouraged to eat everything, drink plenty and enjoy yourself while in Mexico. Failure to do this is seen as a refusal of hospitality or a sign that you are not comfortable in Mexico or with your hosts.
  • In a social gathering the men will tend to congregate in one part of the room or table and the women in the other.

 

Related Links

 

Patience, Chaos and Doing Business in Mexico

How to do business in Mexico

Criticism – how to do business in Mexico

Meeting people in Mexico

How to negotiate with Mexican business people

How to call Mexico from the USA

Great International Business Trip Results

16 Essential questions – the international business traveller’s quiz





International Business – cultural mistakes

31 10 2006

Good advice for international travellers, on how to avoid being seen as the “ugly American”.   Are you the ugly American by Erin Richards, Budget Travel.

Remember that every action, comment, reaction, criticism and gesture is being watched and evaluated by your hosts, counterparts and clients when you are in their country.

Look for and work to find the similarities in your cultures and interests.

Humility and and stopping to think before acting will go a long way toward improving your relationships and international cultural and social skills.

Related Links

Cultural Misunderstanding- it can happen to you

International Business Tips

Great International Business Trip Results

16 Essential questions – the international business traveller’s quiz

Lessons in international business

Stereotypes and global business

Are you the ugly American





Patience, chaos and doing business in Mexico

27 10 2006

To successfully work with Mexico one must understand some fundamental truths inherent in the country and culture.

Patience and Chaos are important factors in understanding the people, culture and history.

Patience.

Mexicans are patient people. The have great tolerance for human error. They run on a schedule that is influenced by work concerns, family concerns, their own mental health, and takes into consideration outside factors and influences that might interfere with their plans.

This is not to say that Mexicans are never in a hurry, or are willing to accept poor quality, or like to move slowly.

What it means is that they are not overly disturbed and motivated to emotional outbursts and threats if something gets in their way, or does not go as planned. They patiently seek a solution, and if no solution is present, they accept the reality of the situation.

Chaos

Chaos is part of Mexican culture and society. Lack of long term planning is quite common (at government, business, personal levels), and everything gets done at the last minute. The curious part is that everything DOES get done.

This chaos and disorganization draws strong criticism from individuals used to order, control, planning and expected outcomes in their own countries. Remember that it is a characteristic of Mexico, not good, not bad, just different.

Living in a chaotic environment allows the Mexicans to rapidly adapt to any situation, take advantages of opportunities quickly, and survive quite well in a every changing world.

There is spontaneity in Mexico. Social engagements are arranged at a moments notice, or simply just happen, unplanned and casually. Things just happen. Expect last minute changes in plans, events, and agendas. “Expect the unexpected” is great advice.

Not surprisingly, Mexico is a country where social relationships and social networks are extremely important. These personal bonds and relationships, which are reinforced constantly, help to creat order and get things done.

As is the case of all stereotypes, these observations are broad based and may, or may not, have any validity.

Related Links

Cultural Misunderstanding- it can happen to you

How to do business in Mexico

Criticism – how to do business in Mexico

Meeting people in Mexico





Illegal immigration – USA and Mexico

18 10 2006

Immigration control is a global challenge, and yet not one developed country has developed a good workable and acceptable legal immigration plan that eliminates illegal immigration.

There are political solutions, and then there are real solutions.

Immigration between nations occurs when there are marked differences in economic wealth or living conditions between two regions. In order to eliminate massive immigration, wealth (and it’s distribution) of the economically disadvantaged country must improve or the wealthier country must lose it’s wealth.

The long-term solution to immigration will be found in changing economic conditions, policies and the creation of opportunities in the disadvantaged country.

A short-term solution will be found by building walls and increasing border enforcement (This is effective where the border areas are limited and can be totally controlled).

The current immigration situation between Mexico and the US has become a political football, and it appears political solutions are all that matter.

It’s time for both countries to work and invest in real, long-term economic solutions to solve fundamental problems in order to help and protect both countries. The US is facing a problem, and Mexico should assist their neighbor in finding solutions.

The Mexican perspective:

  • There are many opportunities and jobs available that pay much better than in Mexico.
  • There are no jobs available in Mexico for the majority of immigrants.
  • Going to the US is a “rite of passage” for many Mexicans in certain areas. Most return to Mexico after 3 – 5 years.
  • Many cross the border illegally to meet family members already in the US, and have jobs waiting for them once they arrive. Most immigrants have jobs in the US.
  • Most of the immigrants come from rural areas in Mexico, with low levels of education.
  • Mexican immigrants in the US send enormous sums of money to support family members in Mexico. Petroleum sales bring Mexico the most foreign currency income, followed by money sent by Mexicans in the USA (not all illegal immigrants) to family in Mexico.
  • For many Mexican state governments, this injection of foreign capital is very important for maintaining local economies.
  • Crossing the border illegally is dangerous and life threatening, and in many cases expensive.
  • US employers are open and supportive to employing illegal immigrants, and in many cases provide false identification and protection to the workers.
  • The majority of the millions of illegal immigrants currently in the US are working, and spending money in the local US economies.
  • The legal immigration mechanisms available (visas) reject those who are economically disadvantaged (the ones with the highest need to immigrate).
  • Mexicans believe that the US has the sovereign right to restrict and control immigration.
  • They would like to see a realistic legal migration program created.
  • The immigrants in the US pay sales taxes, and they consume goods and services in the US.

The US perspective

  • Illegal immigration takes jobs away from US citizens.
  • Illegal immigrants use social, health and welfare services paid for by US taxpayers.
  • Illegal immigrants bring crime, drugs and violence to communities.
  • Illegal immigrants don’t speak English and don’t learn English, and are forcing communities to spend money on bilingual teachers and government programs.
  • Illegal immigration can be stopped by building a wall or by enforcing the border.
  • Illegal immigrants don’t pay taxes.
  • US agricultural businesses cannot survive with competitive prices if illegal workers are eliminated. Legal immigration will increase labor costs.
  • Elimination of illegal immigrants will cause substantial increases in the costs of food, restaurants, hotels, construction and certain consumer and industrial goods and services. Immigrant labor is needed to maintain the US economy.
  • The US Border Control has stated many times that the solution is in enforcing and penalizing US employers that hire illegal workers, not by penalizing and deporting the illegal immigrant.
  • The US government and state governments understand the economic situation and provide political solutions for voters, but understand that the total elimination of immigration would severely hurt the US economy. A legal immigration solution must be implemented.
  • There is a fundamental dilema. America is the land made of immigrants, and yet now must begin to control this immigration. Huge uncontrolled borders, wealth and opportunity, and willingness of employers to hire undocumented workers combine to make the US an attractive immigration destination.

Opportunities and possible solutions

If we agree that the illegal immigration problem is a consequence of economic situations and differences in the distribution of wealth, then the following ideas are possible solutions. None of them are easy, all of them have costs, but they are the only real long-term solutions to the immigration situation.

  • US government and businesses coordinate with the Mexican government and business sector to invest in economic development projects in the areas in Mexico with the highest degree of poverty and immigration.
  • The Mexican government must aggressively work and invest in order to improve opportunities and wealth in their country, especially for the economically disadvantaged.
  • US businesses push for immigration reform that allows for temporary workers and legal immigration. The program would increase costs to the US employers, and the workers would be paying taxes.
  • US government makes laws and enforces them against US employers that hire illegal immigrants.
  • US government finds a method to legalize current immigrants that have been and are working in the US.

Related Links

Observations on illegal immigration in the US, possible solutions

How to do business in Mexico, Parts 1 – 28

Official government websites of the Mexican States

The definitive dialing guide for calling Mexico

Top States in Mexico for for doing business – World Bank Report 2007





Lessons in international business – negotiations

17 10 2006

Observations on how to create trust, effective meetings and excellent negotiations with overseas customers, suppliers and partners.

  • Whenever you are involved in international negotiations or global meetings keep in mind that you might be working with the same person for the next 10 – 20 years.
  • Negotiations should be open and straightforward.  Hidden agendas will eventually be discovered and make the next meeting very difficult.
  • Negotiations should involve creating value for both parties.
  • Meetings are important moments where trust is being built and confirmed.  Be honest and clear about your desires.
  • Never agree to something you cannot deliver or perform.
  • Listen, understand and evaluate what your partner is requesting.   What are they saying, and what does it mean.
  • Be certain of what you are negotiating and agreeing to.  If not 100% sure, stop and request clarification.
  • Prepare for the meeting several weeks before it happens.  Refresh and add information weekly.  When you reach the meeting, you will be in control of the information and feel comfortable during the talks.
  • At the end of the meeting, write down the most important points or agreements, with names and dates, and have it signed by those present.  This little tip will save lots of time and trouble for everyone involved.
  • Any agreement must have 100% follow-through.  If for any reason problems arise in the follow-through, immediately contact and communicate the situation to your partner.

Related Links

How to negotiate with Mexican business people

Great international business trip results





Great International Business Trip Results

16 10 2006

In any international relationship communication and understanding are critical for success.

Problems created by; language, stereotypes, misinformation, lack of information, and cultural misunderstandings combine with normal business problems to create a complicated scenario for anyone involved in international relationships and global business.

Prepare your international meetings and business presentations using the following questions as a guide to organize your ideas and focus on actions that will produce positive results for everyone involved.

6 Questions – Create Great International Business Trip Results

  1. What does this organization know about me, my company and my country?
  2. What do they think they know about me?
  3. What can I tell them that they do not know?
  4. What do I know about my international partner, culture and country?
  5. What do I think I know about this business, culture and country?
  6. What can they tell me that I do not know?

1. What does this organization know about me and my company. When you walk in the room an opinion has already been formed about you, your organization, and your ability to perform in the future. These ideas are based upon facts, information and past experience.

  • What has been the history of our relationship in their country?
  • Who has been involved in our mutual business, and why?
  • What promises have been made and kept by both?
  • What promises have been made and not delivered upon?
  • What have the major problems and success been in the past?
  • Press and media, our organizations promotional material.

2. What do they think they know about me. Clarifying the unknowns or presumed realities in a relationship is crucial to success. These ideas may be very damaging and limit your ability to trust one another. What stereotypical behaviour can you avoid or prevent? What can you clarify or refute through information or actions?

  • Behaviour and reacts based upon past experience with your organization.
  • Rumour and innuendo, press and media reports.
  • Negotiation styles.
  • Business objectives.
  • Behaviour, goals and methods of doing business based upon country and cultural stereotypes.

3. What can I tell them that they do not know. Today’s business world requires trust, information and solutions. Reinforcing your need to work with your international partner, providing important information or solutions, and clarifying misunderstandings can only help the relationship.

  • Clarify or destroy cultural stereotypes.
  • Clarify business objectives and why they are important in order to reach these objectives.
  • Provide solutions and alternatives to existing situations and challenges.
  • Provide information of value for their business and strategy.
  • Clearly identify current or potential business problems.
  • Predict and have answers ready for their questions.

4. What do I know about my International partner, culture and country? What do I know is true and not innuendo or interpretation? The numbers, facts, information, agreements and past performance history of the business. Information about the country and the business culture.

5. What do I think I know about this business, culture and country? What preconceived ideas and stereotypes are you working with? What are you assuming and what has been proven?

6. What can they tell me that I do not know? What questions do you need to ask in order to verify information or create plans. What pieces of your information puzzle are missing? This is the time to get your questions answered, what are they?

Related Links

Cultural misunderstanding it can happen to you

Stereotypes and global business

Create great international business relationships

16 Essential questions – the international business traveller’s quiz

Lessons in international business





Lessons in international business

10 10 2006

The most difficult part of doing business overseas will occur when you have to explain your country’s politics and culture, and provide answers on why you do things the way you do.

Related Links

Cultural misunderstanding it can happen to you

Stereotypes and global business

International business traveller, ambassador, explorer, map-maker





Business in Mexico, conversation themes

15 09 2006

When going to Mexico for business, be prepared for conversations. Mexicans are social people. They love to gather in groups and socialize. You can be assured of plenty of conversations during your visit.

Most business meetings and business dinners will involve a great deal of conversation of off-topic ideas before getting to business. Your ability to participate and keep the conversation moving is an important part of creating trust and the bonds required for doing business successfully in Mexico.

What topics are of general interest in Mexico?

Be cautious about introducing your personal opinions about politics and religion. Asking others to explain the current situation, so that you can understand it, is a safe way to venture into themes related to politics and economics.

Currently (September 2006) the following themes are sure to provoke conversations, discussions and opinions when in Mexico.

  • The recent Mexican presidential elections. Predictions for the future, scenarios, how it will might affect business and Mexico.
  • Your industry or business sector. Any international or national news, information, gossip, trends or tendencies related to your business sector.
  • Infrastructure projects in the city or state where you are visiting
  • China and it’s impact on the Mexican economy
  • Children and family
  • News or current events that can be found on the front page of the local or national newspaper
  • Recommendations on when and where to vacation in Mexico

Related Links

Create great international relationships

Advice on what to expect when doing business with Mexico





Cultural misunderstanding, it can happen to you.

15 09 2006

When we think of industry leaders in marketing and branding, Disney comes to mind. Geniuses in promoting their brand. Magnificent marketers. Leaders in the theme park industry. Universally recognized brand.

What could possibly go wrong with their expansion into Hong Kong and the Asian-Pacific market? Cultural misunderstanding.

Expansion into international markets and working with other cultures has created unforeseen headaches and problems for Disney once again. Disneyland struggles in Hong Kong

This is not the first time Disney has encountered cultural problems in international projects. EuroDisney also suffered from problems related to culture and customs that were not predicted or not taken seriously.

Disney is not alone. Virtually all organizations seeking to export and participate in international markets face steep learning curves about culture, customs and manners. Mistakes are made, at times very costly mistakes.

The lesson to be learned is to spend the time and money to understand your international markets and the culture where you will be doing business. It’s not enough to understand your brand and current customers. Never underestimate any cultural factor, and never assume that your model, project or way of life will be embraced fully and without reservations.

Related Links

Create great international business relationships

Stereotypes and global business