doing business in mexico 2011. population: 112,322,727 million gdp per capita: $13,200 (est. 2009)...
TRANSCRIPT
Doing Business in Mexico2011
Population: 112,322,727 million GDP per capita: $13,200 (est. 2009) Under 20: 44 % Literacy Rate: 91 % Urban: 77 % Wealthy/Upper Middle: 23% Middle Class: 37% Poor: 40%
40%
37%
23% PoorMiddle ClassWealthy / Upper Class
MEXICO – A SNAP SHOT
Why Mexico?
Location / Access to Goods/Services/Market in U.S.
Size, Diversify, and Vast Market
Shared Culture: Western, Hispanic
Manufacturing base in various sectors
Stronger legal protections
Politically stable
Macroeconomic stability
Safety & Security in Mexico:
A Changing Environment The changing security environment in Mexico presents
challenges for U.S. companies
Border cities are particularly vulnerable, such as Nuevo Laredo, Juarez, Reynosa, Matamoros, and Tijuana
Businesses in Mexico are investing more in security for their personnel, facilities
Visitors need to use common sense and be aware
State Department Website for Travel Advisories: http://travel.state.gov/travel
Mexico is the United States’ 3rd largest trading partner
Mexico is the 2nd destination of all U.S. exports
Mexico accounts for roughly 1/8 of all U.S. exports
22 American states depend on Mexico as their first or second destination for exports
One billion/day in two way trade
Mexico – US Trade
World’s largest free trade area: 442.4 million people; $15.4 trillion GDP
No tariffs on U.S. exports to Mexico (except current dispute)
It clarifies and simplifies rules of trade Institution of Dispute Resolution Process -
Trucking is Major Issue U.S.-Mexico trade increased 317%: from $88
billion in 1993 to $367 billion in 2008 Trade has grown faster than the infrastructure
that handles it Mutual Recognition Agreements for
testing/certification in some sectors
The impact of NAFTA
MEXICAN BUSINESS CULTURE
Understanding cultural differences can make or break successful business
deals.
MARKETCHALLENGES
DRESS CODEFormalMen:
suits & tiesWomen:
2 piece set / dress, skirts
Except for use in a beach resort, shorts do not enter into the dress code anywhere
LEADING SECTORS/OPPORTUNITIES
Agribusiness Sector
Airport and Ground Support Equipment
Automotive Parts and Supplies
Education and Training Services
Energy Sector
Environmental Sector
Franchising Sector
Hotel and Restaurant Equipment
Housing and Construction
Internet and IT Services
Packaging Equipment
Security and Safety Equipment
Telecommunications Equipment
Transportation and Infrastructure Equipment
Market Entry Strategies
The best strategy to enter the Mexican market is to find a local representative or distributor. With this, buyers feel secure that initial training, spare parts and service will be provided.
Due to regional concentration throughout Mexico, representation locally will yield better results than a single, nation-wide distributor.
Price is important, but not necessarily the deciding factor.
Be prepared to provide brochures, catalogs, and printed materials in Spanish. Keep websites international-user-friendly.
THANK YOU
State of North Carolina Mexico Office
LAURA CAMBEROS
Trade Representative
52-55-1085-7208