The Definitive Business Travel Guide – Leon Guanajuato

“The Definitive Business Travel Guide – Leon Guanajuato” was written specifically for English-speaking international business people who want increase their efficiency and business results when working in Leon, Guanajuato.

The Definitive Business Travel Guide - Leon Guanajuato

Every business traveler knows the amount of time and energy dedicated to learning about basic infrastructure and logistics for an international trip. Time and energy that is devoted to non-business activities instead of focusing on the business issues and results you need.

Get your copy here

Wouldn’t it be great to have a guide that gives you the important information you need to get to Leon and start working as soon as you get off the plane?

I have seen and worked with hundreds of first time business visitors to Leon, and this E-book is based upon their questions, comments and advice on how to make a business trip to Leon, Guanajuato easier and more efficient.

CLICK HERE TO GET YOUR COPY

I wrote ‘The Definitive Business Travel Guide – Leon Guanajuato 2011 Edition”, an insider’s business guide to Leon, with answers to your important questions about; where to stay, how to travel, logistics, food, what business customs make a difference in starting a business relationship, what is the best way to get started working in Leon, Guanajuato.

Special 2010 pre-launch price, USD $ 23.95 until December 31, 2010.

Buy it here

Mexico Investment Portal

Aaron Burda and I have begun work on a very interesting (and hopefully useful) project.  Providing information and online links, in English, for foreign investors and businesses wishing to examine, analyze and evaluate Mexico for business operations.

The Mexico Investment Information Project (link)

We are a Creative Commons licensed project (i.e. not for profit) whose mission is to provide the best online resource to foreign businesses looking to invest in Mexico. Currently online is a very rough “mock up” of a website that we are planning to build over the next several months.

If you would like to participate in the project and feel you have some valuable expertise to contribute please apply for a userid.

Project History
The Investment Portal is a combination of two projects. Lee Iwan’s Business South of the Border Blog and Aaron Burda’s UC Davis Graduate School of Management Mexico Research Project. Both Lee and Aaron were convinced that the quality of the information available on the Internet about doing Business in Mexico could be substantially improved.

Project Future
We hope to organize the existing Internet English language resources about doing business in Mexico and add to it through having select volunteers write succinct articles on relevant business topics.

If you are a Banker, Lawyer, Accountant, Environmental Expert, HR Manager, Logistics Manager or other qualified and experienced individual with business expertise about Mexico and would like to provide information, advice, or website links to this project, don’t hesitate to contact us.

Related Information

Mexico Investment Portal

Understand Mexico Blog 

Business South of the Border 

Determine cultural conflicts between Mexico and your home country

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

Need to know about Leon Guanajuato?

Yet another Squidoo lens. This time focused on Leon Guanajuato Mexico. Happens to be the town I’ve been living in for the past 15 years.

Information about Leon Guanajuato

Leon is internationally “famous” for the shoe making and leather industry (80+% of all Mexican shoes, boots and leather goods come from Leon).

Leon is also growing due to the automotive industry and an “industrial corridor” being created between Leon and Celaya.

On top of all this, the service sector continue to expand and grow due to the population growth, the Poliforum Convention and Exhibition Center and the Poliforum Cultural Center.

Related Links

Information about Leon Guanajuato

Hotels in Leon Guanajuato

SAPICA International Footwear and Leather Goods Show

ANPIC Fair of the Americas

Mexican Footwear – How to Find Competitive Suppliers in Mexico

Hotels in Leon, Guanajuato Mexico

For those business or pleasure travellers seeking hotel information for Leon, Guanajuato, Mexico.

Hotels in Leon, Guanajuato, Mexico

Information about hotel type, address, phone and fax numbers, and the all important website address.

Related Links

Squidoo – Hotels in Leon, Guanajuato, Mexico

TripAdvisor – Leon, Guanajuato Hotels  

The dangers of success

Today a Google search for the word “success” turned up 321 million websites.

“Failure” got 218 million sites.

We all want to be successful. Leaders are expected to be successful.

We’ve been trained, rewarded, pushed and prodded to become successful. School, work, games and personal life, we are always focused upon success.

It is probably genetic in nature. Competition to survive demands success, and therefore the desire to succeed is an inherent quality in human beings.

Success brings recognition, wealth, favor and fame to the individual or group. All are benefits and rewards of being successful. We like the rewards and benefits….we really do.

Business loves success. In fact, business is not very tolerant of failures, especially leadership failures. To be a leader in a business environment means that you must be successful and get your objectives accomplished.

We strive for success, we really want it to happen, we plan for it, we train, we learn new things, we even modify and manipulate external factors to assure the outcome we desire. Despite all our planning, spending and preparations we are not always successful. No one is successful all the time.

We often forget that past success is not a guarantee for continued success, and that failure is always a learning experience, not always a bad outcome.

The illusion that we must always be successful, and the glory and attention that success brings is not always a good thing.

“Pray that success will not come any faster than you are able to endure it” Benjamin Nnamdi Azikiwe

Success, and particularly continued success, can lead an individual or organization into the following behaviours and attitudes.

• Cult of Personality / Fame. The focus is on the personality and not on the present or future work outcomes. It becomes more about who is doing it and less about what to do.
• Fear. Avoiding or agonizing about doing something different, new or original, “ we were great doing this…let’s keep on doing it”.
• Can’t let go. Inability to let go of a success and move on to the next challenge. Unwillingness to say “that project and party is over…what’s next”.
• Over Confidence. Invincible attitude leads to strategies, theories and attitudes that may provoke attacks on enemies or punish those in a weakened position.
• Loss of control. Inability to gauge or control excess or weakness. Losing touch with the reality of the situation.
• Yes Men. Lack of honesty from the people around you, no real challenges to ideas, methods and objectives.
• Hangers on. Distractions and undesirables begin to fill the agenda and schedules.
• Closing Networks. Cutting ties with old networks and individuals to move “up” in status.
• Depression. When the happiness or emotion of succeeding does not reach previous levels of emotional highs or didn’t meet the expectations.
• Risk. Anxiety about repeating the success may drive one to take larger risks, or to eliminate risks.

So go on seeking success, it’s the right thing to do.

Don’t take the failures too hard, learn from them, pick them apart and understand exactly why failure occurred.

Celebrate when you do succeed, take your 5 minutes in the limelight. Then put your feet back firmly on the ground and get back to work.

“Try not to become a man of success but rather become a man of value” Albert Einstein.

Related Links

Why do we fail

Leadership lesson – A Message to Garcia

Don’t find a solution, find a way to make it better

We make a large error in our business and personal lives if we believe that every problem or situation can be solved immediately or in the short term through our decisions and application of resources.

Theoretically it’s possible, but our focus on solution instead of optimizing and making changes to make it better can blindfold us toward evolutionary processes that in the long term provide better, stronger and long lasting solutions.

I’m suggesting that every situation should be initially evaluated based on two basic criteria; can it be solved now, or can it be improved now.

The situations that can be solved now or in the short term, should be. The organization should dedicate the time and resources toward the solution.

An example would be a delivery service that has 3 trucks and cannot cover the current delivery area on-time due to an increase in customers and package volume. A possible swift solution would be the purchase of another vehicle and hiring of a new driver.

A situation that cannot be solved now or ever should be approached by identifying areas where improvement should be made. The time and resources of the company should be focused upon the improvement.

An example would be government’s attempt to eliminate poverty or disease from a population. A perfect solution is not possible or practical, but by focusing on specific areas one can find great opportunities for success or enormous impact (vaccinations for children against polio).

When we look at every situation as a problem that needs to be solved right now we may be missing the best solutions and strategies required to resolve the situation over the long term. Ask yourself:

• Can we solve the problem quickly and efficiently with simply modification of variables or a shift in technology? If the answer is yes, then set the process and resources in motion.

• What if the problem is not able to be solved quickly or has no practical or economically viable solution? This is where the approach of resolving and modifying parts of the problem comes into play.

This evolutionary approach to problem solving is not often requested or expected in business (the quick fix is always applauded and sought after), but often the best long term strategy is optimization and gradual modification.

This evolutionary problem solving process will provide new opportunities for change and solutions to be developed in the future.The identification of areas, processes or resources that are the bottlenecks in your organization become areas of opportunity.

Modifying and improving these bottlenecks will automatically create new bottlenecks, in new areas. The focus on identifying and solving these “new” situations leads to a process of continual improvement and a better, stronger organization.

This is one of the fundamental ideas behind the Theory of Constraints (TOC).

Common sense tells us that in a complex world not all solutions are simple, quick or painless. The “quick fix” is a great idea, but not often found in everyday life.

Observation of science, technology, philosophy and business ideas and strategies show us that change occurs through the rare revolution (paradigm shifts and new discoveries) and through the more common evolution (gradual modifications leading to continual change.

What can be changed, fixed or modified today to make the organization, process, product or service incrementally better?

Related Links

Why don’t they?

Starting over

How to systematically analyze any situation for better decision making

AGI Institute – Theory of Constraints

Evolution (Disambiguation)

ANPIC 2007 Leon, Guanajuato Mexico

ANPIC 2007. This is the annual international trade fair for leather tanning, leather chemicals, machinery and supplies for the footwear industry held in Mexico since 1980.

The “Fair of the Americas” (Feria de las Americas) is held in Leon, Guanajuato, Mexico from February 17, 2007 through February 20, 2007 at the Poliforum Exhibition Center in Leon.

Leon, Guanajuato is the leather tanning and shoe making capital of Mexico.

Visitors will find 1200 national and international suppliers of:

• Shoe machinery and equipment
• Tanning machinery and equipment
• Chemical products
• Hides and skins
• Synthetic materials and textiles
• Lasts, heels and soles

Related Links

How to do business in Mexico 

ANPIC 2007

ANPIC 2007 calendar of events

ANPIC 2007 Hotel list

ANPIC 2007 contact information

Business South of the Border

Christmas bonus – the aguinaldo in Mexico

Employers in Mexico are required by law, to give employees a Christmas bonus.

The “aguinaldo” is a mandatory annual payment given in the month of December, prior to the 20th, to each worker in Mexico.  This includes all employees in private industry, and all government employees.

The aguinaldo is equivalent to 15 days wages, or more.  For employees with less than a years service, a pro-rated payment is provided.

This puts added strain on cash flow and accounts payables for Mexican organizations during the month of December.  At the same time it creates a huge burst of economic activity throughout the country.

Related Links

Christmas parties and holiday gifts in Mexico

Mexican official and unofficial holidays

How to do business in Mexico

Indirect messages and business etiquette in Mexico

A comment from .hj highlighted an important issue when doing business in Mexico.  He wrote ” (Mexicans) will try to deliver a message using indirect messages and almost never telling things directly for it is consider unpolite”

Etiquette and formal behaviour is expected in Mexican business negotiations, especially with international clients or suppliers.   This will become more relaxed and informal over time, as the trust is reinforced and expectations are met on both sides.

It is all about mutual respect.

The formal rules and behaviours (etiquette) that enhance and create an atmosphere of respect have been broken down or eliminated in the USA, but in Mexico they are critical and very much a part of business dealings.

The Mexican business person does not like to create a confrontation or criticize openly, it is considered rude and ill mannered.  One should be very perceptive to what is being said by your Mexican partner, what is being avoided and the implications of each behaviour.

One should avoid open criticism of the Mexican partner.   They expect the same formality given to you, it is embarrassing and awkward if one begins to point fingers and rant and rave.

Make comments and observations about areas that need attention, strategies and solutions that must be adapted and challenges that must be met instead of criticism of past performance.  Discuss what is working and what isn’t working, but don’t personalize it.

You may not hear direct criticism of an idea or proposal, instead there might be suggestions of alternatives.

Your ideas, proposals and solutions may be greeted by nodding heads and smiling faces, but it may only signify that the audience is listening, and not in complete agreement.

Decision-making on sensitive or unpopular issues may be delayed and not openly debated.  Give your Mexican partner time to deal with these issues, and don’t force a decision in public.

If able to plan the meetings in advance, propose an agenda, and include the issues you need to discuss, or that require a decision.  Give them time to prepare for the meeting and the decision-making required.  Don’t demand a decision in an open meeting.

Lunches and informal settings are where the real business discussions and dialogues will take place, and even then, will be presented may be in a vague and non-confrontational manner.  Use these moments to explain and explore the ideas, benefits and alternatives.  Listen.

Present yourself and treat your business relationships as a well educated respectful gentleman, not like a threatening conquering warrior barbarian.  Participate, listen and react to business situations with poise, calm and politeness.

Related Links

How to negotiate with Mexican business people

Doing Business in Mexico – cultural tips

How to speed up doing business in Mexico

Speeches and Protocol in Mexico

Christmas parties and holiday business gifts in Mexico

The month of December is Mexico is filled with Christmas and holiday parties and social events.

The population of Mexico is 95%+ Christian and openly celebrates Christmas in private industry and government displays. Be aware that there are other religious groups in Mexico that do not celebrate Christmas in order to avoid offending suppliers or clients.

These Christmas and holiday reunions are usually mid-day dinners or late suppers. There will be get-togethers for friends, business acquaintances, associations and any committees or other groups that you might belong to.

There is also the company Christmas party.

Failure to attend the holiday events are noticed and considered rude. It’s better to arrive and steal away early than to avoid the reunions all together. Remember Mexico is a very socially oriented culture, failure to attend and participate in the social events will not help you, it might work against you.

Corporate and business gift giving is very important, and in many cases expected at Christmas time. The low end gifts range from the traditional; calendars and pens, agendas, calculators or other promotional type gifts to the higher end: fine liquors (Tequila, Scotch whiskey, Cognac, Red wine), fine food baskets, electronic equipment (Palms, IPods, etc.), gift certificates to restaurants, etc.

Unlike the USA, it is common in Mexico to give holiday gifts to the decision-makers in the purchasing department unless the companies have a policy against it.

Cut flowers or live plants are not considered an appropriate business gift.

Holiday gifts are given to important (and not so important) clients or to key people in the clients organization with whom you have a personal/business relationship (for example the secretary who answers all your calls or the logistics person who solves problems all year long).

Some transnational companies have tried to limit and reduce the amount and quality of business Christmas gifts in the past few years. It is not looked upon kindly by customers who always reflect upon the amount of money they have spent with the supplier, and believe the Christmas gift is a “thank you” and recognition of their support and loyalty throughout the year.

Work begins to slow down in Mexico at the beginning of December, and after December 12 (The Day of Guadalupe) efficiency grinds to a halt. It’s impossible to get major decisions, and many times difficult to locate business owners and managers due to events and social engagements.

Most Mexican businesses (not in tourist areas) are closed during the week between Christmas (Dec. 25) and the New Year (Jan 1). The Mexican government prohibits highway transport of certain goods and tractor trailers during this peak family vacation period.

Related Links

How to do business in Mexico

Mexican official and unofficial holidays

Tipping guidelines for Mexico

Doing Business in Mexico – cultural tips

Advice on what to expect when doing business with Mexico

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

Mexican politics – what business people should know

In order to begin to understand Mexican politics (an impossible task), it’s important to learn some fundamentals of the political system in Mexico.

• There is no re-election for political officials for the same post in Mexico. Current office holders can sit-out a term and run again for the same office, or they can run for another political post.
• The political parties control the selection of party candidates who run for office, at Federal, State and local levels. Political parties, and their leaders are very important.
• In order to be remain in politics one must please both the party and the electorate.
• The term for the President of Mexico is for 6 years, with no re-election.
• The term for State Governor is 6 years, with no re-election.
• The term for Senators is 6 years, with no re-election for a consecutive term.
• The term for the Camara de Diputados (similar to the House of Representatives in the US) is 3 years, with no re-election for a consecutive term.
• The term for local mayor is 3 years with no re-election for a consecutive term.
• The term for State representatives and local elected positions is normally 3 years, with no re-election for a consecutive term.
• Changes in the Mayor, Governor or President, cause major reshuffling of bureaucrats and administrative officials. This causes a slowdown or “unofficial” shutdown of some government offices between the election date and the date of the new administration start-up.
• The lack of re-election encourages and favors the current politicians and parties in power to seek out projects with short term visible benefits. They are pushed to show successes, infrastructure projects or other tangible benefits during their term of office in order to get promoted and elected to future political posts.
• In the Mexican states with stable, well defined political party tendencies and majorities, there is more focus on medium and long term projects and planning as the benefits can be attributed to the party.
• If selling a long term project to the government, it should include short term benefits, or tangible results, so that the politicians involved can claim credit.
• Never try and initiate the sale or negotiation of a major project to the State government during the last 6 months or year of a Governors term. It will be stalled, and you will have to “resell” it to the new administration.
• Get to know as many local and State and Federal political officials as possible, in 3 to 6 years they are all sitting in different positions of power and influence in the government.

Related Links

How to do business in Mexico, Politics and Political Parties

How to speed up business decisions in Mexico

Patience, chaos and doing business in Mexico

Official websites of the Mexican states

Best States for business in Mexico – World Bank Report 2007

Top states for business in Mexico – World Bank Report 2007

I highly recommend that you download and read the Doing Business in Mexico 2007 report, released on November 15, 2006.

For anyone currently doing business in Mexico, or thinking about doing business in Mexico, this is a must read.

The World Bank Group has announced that “Doing business became easier in many Mexican states in 2005-2006, according to the new Doing Business in Mexico 2007 report, released today in Mexico City. The report finds that some states compare well with the best of the world, while others need much reform to become globally competitive.” – November 15, 2006

Quick results of the top ten Mexican states based upon the factors of; starting a business, registering property, obtaining credit, and enforcing a contract include:

1. Aguascalientes, Aguascalientes (Easiest)
2. Guanajuato, Celaya
3. Nuevo Leon, Monterrey
4. Sonora, Hermosillo
5. Campeche, Campeche
6. Zacatecas, Zacatecas
7. Queretaro, Queretaro
8. Michoacan, Morelia
9. Sinaloa, Culiacan
10. Mexico City (Most difficult)

A full listing of all the 31 Mexican states is available in the report.

Excerpt from the report: “If you were to open a new business in Mexico City, the start-up procedures would take 27 days on average, 8 days fewer than in Shanghai. If you decided to open a business in Guanajuato or Aguascalientes, you would have to wait 12 days—only one day longer than your competitor in Amsterdam. But if you needed to take a customer to court for a simple debt default in Guanajuato, resolving the dispute would take 304 days—far longer than the 217 days it takes in Dublin,1 but significantly shorter than in Baja California Sur where it takes 581 days. These examples illustrate two patterns. First, some Mexican states compare well with the best in the world. Second, many states need much reform to become globally competitive.”

Related Links

Press release on Doing Business in Mexico 2007 (PDF, 75KB)

Doing Business in Mexico 2007 (PDF, 1.26MB)

World Bank Report – Doing Business in Mexico 2005

Speeches and protocol in Mexico

Speeches for private industry, trade association and government events are quite common in Mexico.

• Every event is started with a speech, or number of speeches from local, state or federal government officials, association presidents or high ranking members or the corresponding private industry equivalents.

• Generally when a speech is given in Mexico to a group, formal protocol is followed.

• For larger events a professional master of ceremonies will be hired to make the speaker introductions and keep the event moving.

• Each speaker thanks and acknowledges by name and title each member sharing the stage or table of honor.

• Mention of each member should be given by rank. Highest ranking official or member first, followed by the others in descending order.

• Speeches in Mexico tend to be long. Government officials tend to give lots of numbers and statistics. Despite the audience’s desire to hear a short, focused discourse.

• It is considered rude to take cell phone calls, carry on conversations with your neighbor, crack jokes or not pay attention during the speeches. If you can’t tolerate it, excuse yourself and leave the room.

• Often invited guests and members sharing the podium do not have anything important to say, they are invited as a courtesy or as part of the political/social protocol.

• After the initial speeches are over, some government officials may leave for other events.

• Use these opportunities to network and exchange business cards. It is often easier to make initial contact with important figures at an event instead of via telephone calls and emails to their office.

Related Links

International business – cultural mistakes

Create great international business relationships

Advice on what to expect when doing business with Mexico

Meeting people in Mexico – kiss, shake hands or hug?

Sourcing and supply chain strategy – Mexico

Purchasing from Mexico and Mexican suppliers?

Don Gringo at Catemaco News and Commentary brought these items to our attention.

Sourcing in Mexico gets easier.  The article points out that doing business with Mexico is easier than in the past.

• The proximity of Mexico to the US markets impacts communication, logistics, costs and time factors.
• Mexico has a history of dealing with the US, and are familiar with competitive manufacturing techniques.
• Relationships are critical to success.
• Beware of stereotypes.
• Take the time to find the “right” partner.
• Do’s and don’ts for doing business in Mexico

Does your supply chain strategy include Mexico?  It should.  Al Brown president of SupplyMex writes that Mexico offers:

• Logistics infrastructure, highways, rail and port system that has been improved over the past 10 years.
• Free trade agreements with 42 countries.
• Global production and quality standards.
• Stable political and economic environment.
• Skilled workforce.

Thanks Don.
Related Links

Purchasing.com

Why you should pay attention to free-trade treaties 

Maquiladoras in Mexico

Industrial and Business Parks in Mexico

Corruption in Mexico

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

Questions – Answers, Doing business in Mexico

Have any questions about how to do business in Mexico?

Any specific problems or dilemmas related to doing business in Mexico?

Questions about the business culture in Mexico or Mexican culture in general?

Would you like to know more about a specific theme related to Mexican business?

Need references or information about organizations, people or associations in Mexico?

Send your questions to me at   lee.iwan  at  gmail.com
or post a comment here.

Related Links

How to do business in Mexico

Official government websites of the 32 Mexican States 

The definitive dialing guide for calling Mexico

Shorten your learning curve about Mexico

Business South of the Border

How to speed up business decisions in Mexico

When doing business in Mexico, one of the fundamental complaints I hear from non-Mexican business people is the speed at which business in transacted.

They say there are 5 speeds to the Mexican economy, I believe they also apply to negotiations in Mexico.

1. Slow.

2. Slower.

3. Stalled.

4. Going in reverse.

5. Dead.

It can be quite frustrating, but it is part of Mexican business culture.

There are several options available that may help speed up the decision-making process in Mexico.

• Make certain you are both working for the same goal. Write it down, discuss it, and determine that everyone is seeking the same thing. There should not be any hidden agendas.
• Set fixed and specific dates when the data or information must be available or the decision will be made. Get personal commitments from the other participants. Don’t settle for vague answers, get them to agree in public to bring the specific data or make the decision on a specific date. Personal, not institutional responsibility.
• Does everyone have all the information required to make the decision? Write down what is missing and assign responsible parties and dates for completion.
• Follow-up with phone calls and written communication and verify that everything is running on schedule. You will have to dedicate more time to “motivating” or “prodding” than you are used to in your own country.
• Don’t get angry. If there is no decision it is because of a reason you don’t understand or hasn’t been verbalized. Anger is seen as threatening, and not part of a good relationship, it will hurt you more than help you.
• Be patient. It always takes longer than you think it will.
• Keep up the communications, in fact increase them. Contact all the team members involved, try and discuss the project or decision informally (outside of the office or work environment).
• It might be the money. When everything looks perfect, and still no decision, it might be due to money (or lack of it). Try and discuss this privately with the head decision-maker.
• It might be the risk or control involved. Bring the subject out in the open and discuss the risks and control issues involved for both sides. This is best done informally with the team members, one on one.
• It might be NO. Mexicans do not like to say no or give bad news in certain situations. They believe it is impolite, and many times will not respond or will allow the situation to continue until it fades away without a “yes or no” decision being made.

Related Links

Patience Chaos and doing business in Mexico

Doing Business in Mexico – cultural tips

How to negotiate with Mexican business people

How to do business in Mexico

What does Gringo mean

The term “Gringo” is used in Mexico to refer to Americans. Depending upon it’s use (and user) it may or may not be an insult.

My experience with the term in Mexico is that it is a convenient way to refer to Americans, much shorter that “Americano” or “Norte Americano”. Most of the time it’s use is not offensive or meant as a derogatory or demeaning remark.

Many Mexicans will not use the term around Americans thinking that it might offend. Even after establishing friendships when the term “Gringo” is used, often someone will apologize.

Where did the term originate? There are several stories, urban myths and rumours:

From Wikipedia: “A recurring false etymology for the derivation of gringo states that it originated during the Mexican-American War of 1846-48. It has been claimed that Gringo comes from “green coat” and was used in reference to the American soldiers and the green color of their uniforms. Yet another story, from Mexico, holds that Mexicans with knowledge of the English language used to write “greens go home” on street walls referring to the color of the uniforms of the invading army; subsequently, it became a common habitual action for the rest of the population to yell “green go” whenever U.S. soldiers passed by. This is an example of an invented explanation, because gringo was used in Spanish long before the war and during the Mexican-American War. Additionally, the U.S. Army did not use green uniforms at the time, but blue ones.

Another legend maintains that one of two songs – either “Green Grow the Lilacs” or “Green Grow the Rushes, O” – was popular at the time and that Mexicans heard the invading U.S. troops singing “Green grow…” and contracted this into gringo.

From the Snopes Urban Legends Reference Pages: “Although the first recorded use of “gringo” in English dates from 1849 (when John Woodhouse Audubon, the son of the famous nature artist, wrote that “We were hooted and shouted at as we passed through, and called ‘Gringoes'”), the word was known in Spanish well before the Mexican-American War. According to Rawson, the Diccionario Castellano of 1787 noted that in Malaga “foreigners who have a certain type of accent which keeps them from speaking Spanish easily and naturally” were referred to as gringos, and the same term was used in Madrid, particularly for the Irish. 

The true origin of gringo is most likely that it came from griego, the Spanish word for “Greek.” In Spanish, as in English, something difficult or impossible to understand is referred to as being Greek: We say “It’s Greek to me,” just as in Spanish an incomprehensible person is said to hablar en griego (i.e., “speak in Greek”).”

According to the Real Academia Española (the ultimate reference for the Spanish language): 1. Adjective: Foreigner, especially one who speaks English, in general one who speaks a language other than Spanish. 2. Foreigner 3. In Mexico, Cuba, El Salvador, Honduras, and Nicaragua an American 4. In Bolivia, Honduras, Nicaragua and Peru a blond fair skinned person 5. Unintelligible language
Related Links

Doing business in Mexico – cultural tips

Doing Business in Mexico, parts 1 – 28

Foreign direct investment in Guanajuato, Mexico

The State of Guanajuato, Mexico has over 572 companies with foreign capital registered and located in the state.

The following information has been translated from an article dated November 6, 2006, published in the newspaper Correo, by Vicente Ruiz, Link.

49% of these foreign companies in Guanajuato are involved in manufacturing, and 29% are commercial operations which together represent an investment greater than 1,000,000,000 (one billion US dollars).

Due to changes in laws regarding foreign investment in Mexico (in 1993, 1995, 2001), 90% of all economic activities in Mexico are completely open to foreign participation and investment.

Mexico’s growing national economy, free trade agreements with 32 countries and geographic location provide great economic and logistics advantages to companies opening operations in Mexico.

In Guanajuato, 50% of all the foreign companies are located in the city of Leon (281), followed by Irapuato (71) Celaya (52), San Miguel Allende (31), Silao (26), San Francisco del Rincon (25), Guanajuato (19) and the rest (67) throughout the state.

Guanajuato occupies the first position for foreign investment of the all the Mexican states in the North-Central region.

Principal industries in Guanajuato that received direct foreign investment include:

• The automotive industry received US $ 874.2 million
• Processed food industry (concentrates, preserved products) received US $ 99.1 million
• Manufacture of paper, cellulose and derivatives received US $ 18.9 million
• Commerce of non-agricultural items received US $ 17.3 million
• Chemical manufacturing received US $ 15.9 million
• Clothing manufacturing received US $ 7.5 million
• Textile manufacturing received US $ 5.2 million
• Plastics manufacturing received US $ 5.4 million
• Food products received US $ 4.8 million

Who has invested in the State of Guanajuato, Mexico:

Country…. Investment (Millions of US dollars)…… %

United States of America……..1’ 009, 214.00………..92.7

Holland………………23, 277.90………….2.1

Spain………………….18, 234.00………….1.7

Germany……………14, 267.30………….1.3

Denmark……………..4, 913.90………….0.5

Taiwan…………………4, 426.00………….0.4

Others………………..14, 549.60………….1.3

Total: USD $ 1’ 088, 882.70 (Millions)

Related Links

Aumenta inversion extrañjera en el Estado de Guanajuato: SE (Spanish)

Secretaria del Economia de Mexico (English)

State of Guanajuato webpage (English-Spanish)

Correo (Spanish)