Looking for New? It’s in another country

Comments from yesterday’s post New is a requirement got me thinking about how living and working in another country moves your “comfort zone” and exposes you to lots of New.

There is a tendency to forget that this New soon becomes part of our routine and becomes integrated in our system of evaluation and processing of experiences.

Working internationally has been my biggest source of New for the past 30+ years in my personal and professional life.

It invigorates and challenges me.

It’s not always fun, or easy.

Living and working internationally has taught me:

• Patience. It always takes more time than you think.
• To listen before acting, reacting or responding.
• To be humble. I don’t know it all, there is always something else to learn in order to understand.
• To deal with frustration. When it’s not happening just the way you want it to, it means there is a different way to do it, find the alternative or live with the current situation, stop the whining and complaining.
• New ways to solve problems. Not everyone culture approaches or attacks a problem the same way.
• To analyze several solutions before making a final decision. What’s right at home may be 100% wrong in your current situation.
• Most people are honest, fair and open, however being a strange face in a strange land brings out a certain criminal element that may find you irresistible (especially in the transportation sector).
• People express themselves and their true feelings very differently, especially when it comes to solving conflicts.
• Food ingredients and table manners are wildly different and can create physical and/or psychological reactions that were previously unknown to me.
• There is no “right” way to live, solve problems or compete.
• Politics and religion can be discussed, but should never be debated. Never.
• Travel is not glamorous, restful, or easy. Takes a great deal of preparation, adaptation and improvisation to make it work.
• Hospitality, manners and paying attention to detail are incredible important in making and maintaining relationships (host and guest).
• Guides are important. These may be other business people, local residents, books or information about the people, place and culture. Learn, learn, learn and ask lots of questions, it pays off.
• To be fair. Make deals and agreements as if you are going to be working with that company or individual for the next 20 years.
• To see the “Big Picture”. Relationships, government policies, customs and cultural differences all interact and I begin to see larger issues being affected by my smaller decisions and preoccupations.

What about you?

What New did you confront, discover, embrace, enjoy or hate while living or working in another country?

Related Links

New is a requirement

International business tips

Cultural Misunderstanding- it can happen to you

Create great international business relationships

Great International Business Trip Results

16 Essential questions – the international business traveller’s quiz

Difference between a global, transnational, international and multinational company

We tend to read the following terms and think they refer to any company doing business in another country.

• Multinational
• International
• Transnational
• Global

Andrew Hines over at BNET has brief and clear definitions of each of these terms, Get your international business terms right.

Each term is distinct and has a specific meaning which define the scope and degree of interaction with their operations outside of their “home” country.

• International companies are importers and exporters, they have no investment outside of their home country.
• Multinational companies have investment in other countries, but do not have coordinated product offerings in each country. More focused on adapting their products and service to each individual local market.
• Global companies have invested and are present in many countries. They market their products through the use of the same coordinated image/brand in all markets. Generally one corporate office that is responsible for global strategy. Emphasis on volume, cost management and efficiency.
• Transnational companies are much more complex organizations. They have invested in foreign operations, have a central corporate facility but give decision-making, R&D and marketing powers to each individual foreign market.

Andrews’s advice is if in doubt about the right term to use, try the generic term “international business”.

Related Links

Get your international business terms right

BNET

Mexico and India sign investment protection agreement

Mexico has signed a 10 year bilateral investment promotion and protection program (BIPA) with India on May 21, 2007.

This is significant for several reasons.

• Allows investment protection to foreign investors in both countries
• Free repatriation of funds to investors
• Allows Indian companies access to the USA and European market through manufacturing in Mexico
• Offers protection of Intellectual Property (IP)
• Opens the door for Preferential or Free Trade Agreement negotiations in the future

India’s government and private industry sees Mexico as a “trampoline” to the US market, and also entrance into Mexico and Central America.

I have no doubt we will begin to see some Indian investment in Mexico and India-Mexico joint ventures in the very near future.

I strongly recommend that Mexico review, simplify and speedup the time and reduce the costs related to obtaining a travel visa for Indian business people.

Related Links

India, Mexico sign investment protection agreement

India looks for key to NAFTA in Mexico

India eyes free trade with Mexico for better access to NAFTA

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

Using positive reinforcement to win customer loyalty

We respond positively to positive feedback, recognition, and reinforcement of our behaviour and activities at work or home.

We get angry or lose interest in an activity, goal or organization if we don’t receive this “pat on the head” or “cheer-leading” on a continual basis.

Our customers also need reinforcement and recognition in order to maintain their motivation and good feelings toward your company or products.

What are you doing to make sure they get it?

Does the customer feel like you are just “going through the motions”?

Does it feel real?

Are you really showing that you care?

What sets you apart from your competitors AFTER the sale?

Related Links

27 Great Leadership and Management Ideas

The power of something extra

What defines an exceptional leader

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

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

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

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

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

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)

IMF predicts strong economic growth for Mexico

Good news for Mexico and Mexican business.

The IMF (International Monetary Fund) released their Regional Economic Outlook: Western Hemisphere on November 2, 2006.

They are predicting a 4.4% growth rate for this year and strong indicators for medium term growth due to a strong financial sector in the country.

Get the entire report here: IMF – Regional Economic Outlook: Western Hemisphere (pdf file)

Related Links

Press Release: IMF sees continued robust growth in Latin America and in the Caribbean

IMF – Regional Economic Outlook: Western Hemisphere

IMF – Regional Economic Outlook: Western Hemisphere (pdf file)

BBC News: IMF praises Latin American growth

Bloomberg: Mexico’s growth to beat earlier forecast, IMF says

Use of business titles in Mexico – Doing Business in Mexico

The use of business titles in Mexican business life is important.

Most people with professional degrees are addressed using their professional title. This is especially true in written communication. Failure to do so can be seen as lack of education and offensive.

Until you get to know a person, always use the professional title or full name, never address them by their first name until it is clear that they are comfortable with this.

You can ask how they wish to be addressed if unsure. It’s better to make a mistake on the side of formality.

Some titles are general, and when in doubt regarding the professional title, you should use these:

• Joven – refers to any young man from birth to adolescent.

• Señor (Sr.) – refers to any male older than an adolescent.

• Don – a term of great respect used to recognize older males.

• Señorita (Srta.) – refers to any unmarried female. Once a woman is above a certain age, she is referred to as Señora, even if unmarried.

• Señora (Sra.) – refers to any married or widowed woman.

• Doña – a term of great respect used to recognize older females.

Professional titles

• Doctor (Dr.) masculine, or Doctora (Dra.) feminine – Refers to anyone with a PhD. or Medical Doctors degree.

• Licenciado (Lic.) masculine, or Licenciada (Lic.) feminine – refers to anyone with a law degree (most common usage) or Bachelor’s Degree.

• Contador Publico (C.P.) – refers to anyone with a public accounting degree.

• Ingeniero (Ing.) – refers to someone with an engineering degree.

• Arquitecto (Arq.) – Refers to anyone with an arquitectural degree.

• Diputado (Dip.) masculine, or Diputada (Dip.) feminine – refers to a publicly elected official equivalent to Federal, State or Local representative in the USA.

Related Links

Doing Business in Mexico – Cultural Tips

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

Doing Business in Mexico – cultural tips

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

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