Transcript International Business Opportunities for Women in Texas

DOING BUSINESS
IN MEXICO
Mexico
Mexico
• Fear of the unknown
– Language, culture
– Export paperwork
– International Insurance, Business Loans
• Budget
• Market entry
Mexico
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102 million people
1.7% population growth per year
62% pop between 15-64 years
33% pop between 0-14 years
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.
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
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
Expressways
Mode of Entry
• Exporting
– Direct & Indirect
• Joint Venture
– Licensing & Franchising
– Management Contracts
– Turn-key projects
– Ownership arrangements
• Foreign Direct Investment
Challenges/Success Factors
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Foreigner
Language Barrier
Work approach
Relationships
• Perception Skills:
blending in
• Few words
• Access to high
levels & business
etiquette
• Networking
Mexican Flag
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
Business Savvy
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Initial contact with key decision maker
Networking: opens doors
Chambers
Government contacts
Before: Research & Recommendations
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
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
Business Savvy
• Broker/Representative
– Familiar with your market
– Not exclusive
• Master distributor
– One client, large shipments
– One more on his list?
Business Savvy
• Joint venture
– Ownership position in your business
– Finding Mr. Right
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
Business Protocol
NAME
• Maiden
– María (Elena) Gómez Ramírez
• Address
– Lic. Gómez / Srita. Gómez
• Married
– María Elena Gómez de Rodríguez
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
Business Protocol
ETIQUETTE
• Personal space closer
• Touching, hugging, kissing
• Louder
• Hand gestures
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
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