Mexico Investment Portal

15 05 2007

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 

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Mexico – Links to economic and financial statistics

20 03 2007

An inquiry from Andrzej from Poland regarding sites that provide economic data for Mexico has prompted me to provide the following links.

The official and definitive source for Mexican statistics is INEGI (the National Statistics, Geography and Information Institute). There is one little glitch however, it’s only available in Spanish INEGI Instituto Nacional de Estadisticas, Geographia y Informacion.

The OECD (Organization for Economic Co-operation and Development) has a statistical profile of Mexico, covering 40 statistical databases. OECD Statistics Mexico

The World Bank Doing Business site offers indicators of the regulatory costs of doing business in Mexico and is comparable with 175 economies. Doing Business Explore Economies – Mexico.

The Banco Nacional de Mexico, BANIXCO offers a site with up-to-date macro and financial market data about the country and monetary policies. BANIXCO Economic and Financial Indicators.

Another source of economic information about Mexico can be found through contacting the Mexican Embassy or Mexican Consulate in your part of the world. The Economic or Commercial Officer will be able to provide the information you are seeking. Mexican Embassies and Mexican Consulates worldwide.

Related Links

IMF predicts strong economic growth for Mexico

Global competitiveness – 2006 – Mexico and China

General reference links for doing business in Mexico

How to do business in Mexico





Christmas bonus – the aguinaldo in Mexico

5 12 2006

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

28 11 2006

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

27 11 2006

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

22 11 2006

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





How to tell if your Mexican banknotes are counterfeit

18 11 2006

How to tell if your Mexican banknotes are counterfeit.

The handling of foreign currency creates a whole new set of challenges for the business or vacation traveller.

The Bank of Mexico has a webpage dedicated to explaining the security features of the Mexican coins and banknotes so you don’t get bamboozled. Verifying Mexican banknote authenticity

Learn about the security features in Mexican banknotes to eliminate the possibility of receiving “funny money” during your travels.

Security features in manufactured Mexican banknotes – A quick chart to help identify the security features in the current banknotes in circulation in Mexico.

Security features in the 20 Peso polymer banknote

Security features in the 50 Peso paper banknote

Security features in the 100 Peso banknote

Security features in the 200 Peso banknote

Security features in the 500 Peso banknote

Security features in the 1000 Peso banknote

If you believe you have counterfeit Mexican currency, bring it to the attention of a Mexican bank for verification. If the banknote is counterfeit you will not be reimbursed for it’s value, but you might avoid going to jail. Passing counterfeit currency is illegal in Mexico.

The US Department of State Consular information sheet for Mexico states A number of Americans have been arrested for passing on counterfeit currency they had earlier received in change. If you receive what you believe to be a counterfeit bank note, bring it to the attention of Mexican law enforcement.”

Related Links

Mexican currency, monetary policy and financial systems – BANXICO

Banco de Mexico – BANXICO – Bank of Mexico