1. DOING BUSINESS IN MEXICO

2. Mexico

3. Fear of the unknown –Language, culture –Export paperwork –International Insurance, Business Loans Budget Market entry

4. Mexico 102 million people 1.7% population growth per year 62% pop between 15-64 years 33% pop between 0-14 years

5. The Mexican Market Why is it important? –2 defined economic groups: rich & poor Poor majority does not equal insignificant market 30 million consumers w/discretionary income Concentrated in major cities Sophisticated shoppers Rich = really rich = 24 out of 500 richest men are Mexican.

6. The Mexican Market –Largest number of FTAs Trade US & CAN tripled since NAFTA 1994 –Lots of $ in Mexico - Income distribution: top 20% earn 55% of total & private consumption lead growth in past 2 years –Actively seeking foreign participation in its economy: no. state owned enterprises fell 1982 >1000, 2000 <200

7. The Mexican Market Exports: $168 billion - 2000 Imports: $176 billion - 2000 Infrastructure –Airports: 238 (paved), 1610 (unpaved) –Seaports:15 (major) –Expressways: 3960 miles –Highways: 56,178 miles

8. Expressways

9. Mode of Entry Exporting –Direct & Indirect Joint Venture –Licensing & Franchising –Management Contracts –Turn-key projects –Ownership arrangements Foreign Direct Investment

10. Challenges/Success Factors Foreigner Language Barrier Work approach Relationships Perception Skills: blending in Few words Access to high levels & business etiquette Networking

11. Mexican Flag

12. Doing Business in Mexico Conscious of history and tradition - proud and patriotic Patience is advised - skeptical of foreigners in their country and business “Despacio que tengo prisa” Establish reputation by keeping every commitment

13. Business Savvy Initial contact with key decision maker Networking: opens doors Chambers Government contacts Before: Research & Recommendations

14. Business Savvy Telephone or verbal? In writing, email or fax & follow up Need signature for agreements Translations & translators - avoid mistakes Do you really speak Spanish? Advertising - hire a professional

15. Business Savvy Direct selling –Control over product –Expenses: staff & inventory Branch office –US trained personnel in control of ops –183 days over 12 month-period

16. Business Savvy Broker/Representative –Familiar with your market –Not exclusive Master distributor –One client, large shipments –One more on his list?

17. Business Savvy Joint venture –Ownership position in your business –Finding Mr. Right

18. Business Protocol Non-smoking areas - unknown Who pays? Whoever extended invitation A woman NEVER pays. Refer to people by their prefix Prefix, First Name, (Middle name), Paternal Last Name, Maternal Last name

19. Business Protocol NAME Maiden –María (Elena) Gómez Ramírez Address –Lic. Gómez / Srita. Gómez Married –María Elena Gómez de Rodríguez

20. Business Protocol ETIQUETTE Woman enters room - stand up Carry plenty of business cards Don’t be hyperactive Don’t look at the watch constantly –allow at least 2 hours per meeting (+ traffic) Be on time, expect others to be late

21. Business Protocol ETIQUETTE Personal space closer Touching, hugging, kissing Louder Hand gestures

22. Business Protocol ENTERTAINMENT May or may not discuss business –Avoid talking about income, status, investment & historically sensitive topics Watch out for altitude & alcohol! Dining takes long, no rush Different hours - snacks

23. Business Protocol Weekly Schedule 8:00-9:00/10:00 Breakfast 10:00-2:00 - Office hours 2:00-4:00/5:00 - Lunch 4:30-6:00/7:00 - Office hours 7:00-9:00 - Cocktails, happy hour 9:00-Midnight/beyond - Dinner