business in méxico by rodolfo hernandez mcintyre

Business in MéxicoBy Rodolfo Hernandez McIntyre

RodolfoHernandez.com

Rodolfo Hernandez McIntyreRodolfo Hernandez McIntyre is an entrepreneur, based in Seattle WA. Rodolfo developed the successful SeaReal Real Estate Team as an independent brokerage and in 2010 merged with the Keller Williams franchise, and partnering to open the Burien Washington Business Center in 2011.

Part of the Advisory board for President of Mexico Felipe Calderon from 2009 to 2011 and working together with the Secretary of Economy, ProMexico, Secretary of Diplomatic Affairs and other governmental organizations worked as liaison for business and entrepreneurs to invest and open business in Mexico and for Mexican Business and Entrepreneurs to invest and open business in the US.

www.RodolfoHernandez.com


What is going on in Mexico?

• 113.7 million

• Mexico City metropolitan area population is

21.2 million people

• Mexico’s GDP growth rate is 3.9%, faster

than its either the U.S. (1.8%) or Canada

(2.4%).

• 60% of Population is younger than 25 years

old (30% is younger than 14 years old)

• We have a new President, Enrique Pena

Nieto

• Upholding legal institutions.

• Insuring public security,

• Improving the country’s economic

• Providing better healthcare.

• Protecting the environment.


Let’s compare our countries

MEXICO

US

Population: 113.7 million

311.9 million

GDP (PPP): 4.0% growth

1.7% growth

$14,610 per capita

$48,387 per capita

Unemployment: 5.3%

7.9%

Inflation (CPI): 3.4%

3.1%Source: http://www.heritage.org/index/country

Government spending continues to be around 42% of GDP. Budget deficits have exceeded $1 trillion in each year since 2009.

Government spending is now equivalent to 26.2% of total domestic output. Public debt remains below 50% of GDP


Is Mexico Safe?


Mexico vs. International Cities


Mexico vs. USA Cities


Violent Crime Rates


Most Dangerous cities in US

By Forbes Magazine 2012

• Buffalo 1,238 per 100,000 residents

• Cleveland 1,363 per 100,000 residents

• Stockton 1,408 per 100,000 residents

• Baltimore 1,417 per 100,000 residents

• Atlanta 1,483 per 100,000 residents

• Birmingham, Ala. 1,483 per 100,000 residents

• Memphis 1,583 per 100,000 residents

• Oakland 1,683 per 100,000 residents

• St. Louis 1,857 per 100,000 residents

http://www.forbes.com/pictures/mlj45jggj/1-detroit/


Population: 713,239Violent crime rate: 2,137 per 100,000 residentsThe Motor City tops the list of America's Most Dangerous Cities for the fourth straight year thanks to a stubborn problem mostly with gang-related violence. Violent crimes -- murder, rape, robbery and assault -- fell 10% last year

Detroit2,137 per 100,000


Safe and Unsafe Mexican States


669 Americans died “non-natural deaths” in Mexico between Jan´07 – Dec ´10

• 30% of all “non-natural” American deaths around the world

• Mexico accounts for 30% of the foreign trips taken by Americans (45 million American visits to Mexico)

• 58% (389) were from accidents (car, plane, boat, other). • 85 drowned, • 15 of drug overdoses, • 61 (9%) committed suicide.

• 126 Americans were murdered in Mexico in those 4 years.

• Slightly less than the 45,000 murdered in the US in that same time period.

So your odds of not being murdered in Mexico were 99.9997%

US citizens deaths in Mexico


What is Mexico going to be….


The 12 largest Economies 2012



MEXICO

US

Population: 113.7 million

311.9 million

GDP (PPP): 4.0% growth

1.7% growth

$14,610 per capita

$48,387 per capita

Unemployment: 5.3%

7.9%

Inflation (CPI): 3.4%

3.1%Source: http://www.heritage.org/index/country

Government spending continues to be around 42% of GDP. Budget deficits have exceeded $1 trillion in each year since 2009.

Government spending is now equivalent to 26.2% of total domestic output. Public debt remains below 50% of GDP



Source Softec Mexico


Mexico today is similar to the US in 1940

GDP Population



GDP/PPP School level



Car Sales Median Home Price

New HomesConstruction



Richest Person in the World



The most wanted gangster inIn the world


What entrepreneurs did in the 1940’s in the US that can be

done in Mexico today

Déjà vu


Business Practices in

México


Business Practices in México

Communication styleIn Mexico, communication tends to be indirect and subtle, and presented in such as way as to be diplomatic and non-confrontational

FamilyA fundamental Mexican value is that of the family and the place it holds in society. As a collectivist culture, the family unit is a dominating factor of daily life and the close ties between extended families and communities can have a major influence on individual behavior.

Mexican Culture - Key Concepts and Values

Time In Mexico, time is considered to be flexible, relaxed and circular, and is therefore unlimited. The word “manana” is closely linked with the Mexican concept of time. In literal terms it means “morning” or “tomorrow”, however it is also a way of saying “later”


Business Practices in México

Get familiar with the Mexican historyFollowing three centuries under Spanish rule, Mexico finally achieved independence early in the nineteenth century. The subsequent period in Mexico’s history was dominated by civil war, European intervention, a long domestic dictatorship and perhaps the most important event in the twentieth century, the Mexican Revolution. This influenced Mexican culture and politics for more than half century as Mexico’s could have been easily described as one-party political system, until elections held in July 2000 saw a defeat for the Institutional Revolutionary Party. Today Mexico’s political landscape is a thriving democracy with three political parties, competing neck and neck to govern the country. Despite the economic crisis of the mid-nineties, Mexico’s economic achievements are many. The country’s increasing manufacturing output, rich natural resources and major exports have resulted in a significant recovery in the economy, which continues to improve well into the twenty-first century and invites foreign business from across the globe. Mexico’s economy largely shadows the economic cycles of it powerful neighbor the USA.


Working in Mexico (Pre-departure)

• It is important to schedule business appointments in advance and confirm them once you have arrived in Mexico.

• Business lunches are a favorable method of conducting business in Mexico, emphasizing the more social aspect of Mexican business culture, and often go on for several hours. Breakfast meetings are also popular for getting to know your business associates, and to establish a more personal relationship.

• In most Mexican cities, working hours are generally 9.00 a.m. to 5.00 p.m., but may extend until 7.00 p.m. from Monday to Friday. Business is rarely conducted at the weekend, which is normally reserved for family.


Structure and hierarchy in Mexican companies

• The structure of Mexican companies is representative of the country’s social structure. Hierarchy and social status are particularly significant in Mexican culture and the boundaries they create should be observed.

• Final decisions are generally made by a central authority figure. However, in Mexican business culture, general consensus is taken into account and subordinates are encouraged to openly express their point of view.


Working relationships in Mexico

• In Mexican business culture, cultivating close personal relationships and building trust are considered vital components for a successful working environment. Mexicans prefer to do business with people whom they know/trust and it is not uncommon to find many family members working for the same business.

• Respect is a key component in Mexican business culture and is reflected in the extensive use of professional titles and the formal “you” (usted). Mexicans place great emphasis on showing respect to others, especially to elder and more senior members of the group.


Mexico Appearance

• Men should wear a conservative dark suit and tie. Your wardrobe should include suits that have classic lines and tailoring in gray or navy, and white or light blue shirts. A white shirt is more formal and should be worn when the formality of the meeting dictates.

• Women should wear a dress or skirt and blouse. A classic suit may also be worn. Build a wardrobe using classic lines, classic skirt lengths, and basic classic colors - gray, navy, white, and ivory.

• Jeans are generally not appropriate, and tight or low cut clothing is never appropriate.

• Standing with your hands on your hips suggests aggressiveness, and keeping your hands in your pockets is impolite.

• Mexicans may not make eye contact. This is a sign of respect and should not be taken as an affront.


Mexico Business Behavior

• Men shake hands upon meeting and leaving, and will wait for a woman to be the first to offer her hand.

• Women may shake hands with men and other women. Many times a woman may pat another woman's shoulder or forearm, or kiss on the cheek.

• Longtime friends may embrace, and after several meetings you may also be greeted with an embrace.

• Punctuality is not rigid because of the emphasis on personal obligations. The best time for appointments is between 10:00 a.m. and 1:00 p.m., with late afternoon a second choice.

• Business lunches, rather than dinners are the traditional form of business entertaining and are usually prolonged affairs, beginning between 2:00 and 3:00 p.m. and lasting three to four hours, with little time being devoted to actual business. Lunches are an essential part of business to establish a personal relationship.


Mexico Business Behavior

• Working breakfasts are also popular, meeting at 8:00 or 8:30 at your hotel, and usually lasting two hours at the most.

• Conversations take place at a close physical distance. Stepping back may be regarded as unfriendly.

• Mexican men are warm and friendly, and make a lot of physical contact. They often touch shoulders or hold another’s arm. To withdraw from this touch is considered insulting.

• Giving gifts to business executives is not required. Small items with a company logo (for an initial visit) are appreciated.

• Secretaries do appreciate gifts. If giving a valuable gift, such as perfume or a scarf, present it on a return visit. A man giving it to a female secretary should indicate the gift is from his wife.

• When giving flowers: yellow – represent death, red – cast spells, and white – lift spells.


Mexico Business Behavior• During an initial business meeting, the most appropriate

form of greeting is a warm and firm handshake. This should be done both upon arrival and departure and regardless of gender or seniority. When a more personal relationship has developed, it is not uncommon for business associates to kiss on the cheek or use a friendly embrace.

• Business negotiations can be a lengthy process in Mexico and a certain element of bartering will be expected. It is also important to bear in mind that Mexican business people tend to base proposals and business decisions on the degree of personal trust established with the foreign counterpart and on some occasions on gut feelings.


Mexico Business Behavior• Women should not invite a male counterpart for a

business dinner unless other associates or spouses attend. Also, Mexican men will graciously attempt to pay for a meal, even though you are hosting it.

• Pay for store purchases by placing money in the cashier’s

hand, rather than on the counter.

• Do not use red ink anytime you are writing someone's name.

• The traditional toast in Mexico is Salud (Sal-UUD).

• Mexican’s use a "psst-psst" sound to catch another’s attention in public. This is not considered rude.

• Mexicans refer to people from the United States as “North Americans”.

• Never discuss the Mexican-American war, poverty, illegal aliens, or earthquakes.


Mexico Facts• Mexico has 60 official languages

• Mexico City sinks several inches annually.

• The pinata was invented in China!

• Cinco de Mayo is actually an American-started Holiday!

• Wisdom teeth fail to appear in nearly 100% of indigenous Mexicans

• The border between Mexico and the United States is the second largest border in the world and only 2/3 are fenced, there is 1/3 wide open

• The Chihuahua is the world’s smallest dog and is named for the largest Mexican state

• 2nd City with in the world with more Mexican citizens is Los Angeles

• Mexico introduced chocolate, corn, and chilies to the world.


Contact

Rodolfo Hernández McIntyre455 SW 152nd St.Burien, WA 98166

(206) [email protected]

www.RodolfoHernandez.comwww.SeaRealTeam.com

business in méxico by rodolfo hernandez mcintyre

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