Doing Business in Mexico

Zimmermann, Thomas A. (2002): Doing Business in Mexico. Published in:

Abstract

On 1 July 2001, a far-reaching free trade agreement between the EFTA States and Mexico entered into force. ”Doing Business in Mexico” provides targeted assistance to Swiss Small and Medium-Sized Enterprises (SME) that wish to tap the potential of Mexico as both an export destination and investment location. This comprehensive guide contains information and advice on market research, market entry, and investment in this fascinating country.

Part I introduces the reader to this fascinating country, its long history, its politics and its economy. It becomes clear that Mexico is undergoing a deep transition from a country with one party rule and a closed economy to a pluralist democracy and a major player in the world economy. This situation offers excellent opportunities, provided it is approached appropriately and precautions are taken to minimise risks. Business persons interested in establishing a business relationship with Mexico should take the time to familiarise themselves with the historical and political evolution (Chapter 2) and the economic environment (Chapter 3) of Mexico.

Part II focuses on core business aspects: Chapter 4 on market research is conceived as a navigator to help Swiss SME representatives retrieve targeted information. Fortunately, many Mexican institutions, public and private, have invested heavily into their websites: Industry-specific data, business directories or market access information are readily available and constitute a formidable online information resource on the Mexican economy that is only a few mouse clicks away. In Chapter 5, the pros and cons of different market entry modes are discussed, and advice is given with regard to successful partnering in Mexico – probably one of the most important factors for foreign firms in the Mexican market. Chapter 6 contains a guide to exporting, including some technicalities of the export business. We hope that the information contained therein will assist you in getting your goods across the border and into the Mexican market. The information on foreign direct investment (FDI) which is contained in Chapter 7 will be of help to those readers who are contemplating business presence in the Mexican market. It gives an overview of the legal framework, the business climate, favourable investment locations, selected costs and basic administrative processes. Some of these issues are also taken up in Chapter 8 which deals with selected aspects of the legal environment. Finally, Chapter 9 is a wrap-up of Part II, recalling briefly major success factors and challenges when doing business in Mexico. It highlights the importance of ”soft factors” and cultural considerations for successfully dealing with Mexican partners.

Part III contains some practical advice for business travellers. Last but not least, Part IV offers information on resources which Swiss SMEs may tap in search of additional assistance or information for their Mexican venture: Chapter 11 offers a vast compilation of selected business contacts and references both in Mexico and Switzerland. The goal is to list institutions which are able to provide targeted assistance and expert advice at all stages of market research, market entry and investment. The list has been put together with the conviction that Swiss SMEs will sooner or later have to rely on local expertise in the market entry process, be it in order to cope with the legal requirements of establishing a business presence or to conduct thorough background checks of potential partners, both of which are necessary for business success. Chapter 12 contains a bibliography with a selection of the literature that I used when writing this book and which may be of help to Swiss SMEs dealing with particular issues. Finally, Chapter 13 concludes with some internet addresses that point to major Mexican media and internet portals with general Mexican content.

• Item Type: MPRA Paper
• Institution: Swiss Institute for International Economics and Applied Economic Research (SIAW-HSG)
• Language: English
• Keywords: International trade; trade policy; exports; export promotion; export advice; export consulting; Mexico; Switzerland; competitiveness
• Subjects: F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms ; International Business; F - International Economics > F2 - International Factor Movements and International Business > F20 - General; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M3 - Marketing and Advertising; F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M3 - Marketing and Advertising > M30 - General; F - International Economics > F2 - International Factor Movements and International Business

References

AC NIELSEN ed. (2001): Factbook 2001 – Tendencias del Mercado Mexicano; Banco de Datos (http://www.acnielsen.com/mx) AMBASSADE DE FRANCE ed. (2002): Les organisations patronales au Mexique; Mexico City (http://www.dree.org/mexique) AMERICAN CHAMBER MEXICO ed. (2000): Business Resources/Contactos Empresariales; Supplement to: The Guide to Mexico for Business; Mexico City: AmCham (http://www.amcham.com.mx) AMERICAN CHAMBER MEXICO ed. (2001): The Guide to Mexico for Business; Mexico City: AmCham (http://www.amcham.com.mx) AMERICAN CHAMBER MEXICO ed. (2001): The Insider’s Guide to Living in Mexico City, Guadalajara, Monterrey; Supplement to: The Guide to Mexico for Business; Mexico City: AmCham (http://www.amcham.com.mx) BANCO DE MÉXICO ed. (2001): Informe Anual 2000; Mexico City: Banco de México (http://www.banxico.org.mx) BANCOMEXT ed. (1999): Basic Guide for Foreign Investors; Mexico City: Bancomext (http://www.bancomext.gob.mx or http://www.bancomext.com) 240 BANCOMEXT ed. (2002): Costos Industriales en México – Una Guía para el Inversionista Extranjero; 7th edition (http://www.bancomext.gob.mx or http://www.bancomext.com) BBVA BANCOMER ed. (2002): Informe Económico/Economic Report; latest editions; Mexico City: BBVA Bancomer (http://www.bancomer.com.mx/economica) BBVA BANCOMER ed. (2001): Informe Económico Regional, Tercer Trimestre 2001; Mexico City: BBVA Bancomer (http://www.bancomer.com.mx/economica) BUNDESSTELLE FÜR AUSSENHANDELSINFORMATION ed. (2001): Exportieren nach Mexiko; Köln/Berlin: BfAI (http://www.bfai.com) BUNDESSTELLE FÜR AUSSENHANDELSINFORMATION ed. (1998): Unternehmensniederlassung und Büroeröffnung in Mexiko; Köln/Berlin: BfAI (http://www.bfai.com) BUNDESSTELLE FÜR AUSSENHANDELSINFORMATION ed. (1997): Mexiko – Auskunfts- und Kontaktstellen; Köln/Berlin: BfAI (http://www.bfai.com) BUREAU OF NATIONAL AFFAIRS ed.: Mexico Ò- Export Reference Guide on the Web; Washington: BNA; http://www.bna.com DEPARTMENT OF FOREIGN AFFAIRS AND INTERNATIONAL TRADE (CANADA) ed. (1997): Unterstanding the Business Culture in Mexico: The Key to Success (http://www.infoexport.gc.ca/docs/mx_991-e.pdf) DRESDNER BANK LATEINAMERIKA AG ed. (2002): Latin American Spotlight; Various Issues of 2002 and 2001 (http://www.dbla.com) ECONOMIST INTELLIGENCE UNIT EIU ed. (2001): Country Report Mexico; London: EIU (http://www.eiu.com) ECONOMIST INTELLIGENCE UNIT EIU ed. (2001): Country Finance Mexico; London: EIU (http://www.eiu.com) ECONOMIST INTELLIGENCE UNIT ed. (2001): Country Risk Service Mexico; London: EIU (http://www.eiu.com) 241 EHRLICH, MARC (1995): The Challenge of Working and Living in Mexico. EIDGENÖSSISCHE OBERZOLLDIREKTION ed. (2001): Schweizerische Aussenhandelsstatistik – Jahresbericht 2000; Bern: OZD (http:// www.zoll.admin.ch) GOODRICH, RIQUELME Y ASOCIADOS ed. (2000): Le Mexique – Opportunités d’affaires et cadre juridique; 2ème édition / Mexico – Business Opportunities and Legal Framework; 2nd edition; Mexico City: Goodrich, Riquelme y Asociados (http://www.goodrichriquelme.com) INTERNATIONAL INSTITUTE FOR MANAGEMENT DEVELOPMENT ed. (2001): The World Competitiveness Yearbook; Lausanne: IMD (http://www.imd.ch/wcy) INSTITUTO NACIONAL DE ESTADISTICA, GEOGRAFÍA E INFORMÁTICA ed. (2001): ENIGH 2000 – Encuesta Nacional de Ingresos y Gastos de los Hogares; Aguascalientes: INEGI, (http://www.inegi.gob.mx) INTERNATIONAL MONETARY FUND ed. (2001): Mexico – Financial Stability Assessment; Country Report No. 01/192; Washington, D.C.: IMF (http://www.imf.org) INTERNATIONAL MONETARY FUND ed. (2001): Mexico – Selected Issues; Country Report No. 01/191; Washington, D.C.: IMF (http://www.imf.org) INTERNATIONAL MONETARY FUND ed. (2001): Mexico – 2001 Article IV Consultation; IMF Country Report No. 01/190; Washington, D.C.: IMF (http://www.imf.org) KENNA, PEGGY and SONDRA LACY (1995): A Practical Guide to Understanding Mexican Business Culture; Passport Books. LAUGHTON, FELICITY (1999): Mexiko; Berlin und München: Langenscheidt (Polyglott APA Guide; http://www.polyglott.de) MARKET RESEARCH CENTER / CANADIAN TRADE COMMISSIONER ed. (2000): Distribution Channels in Mexico, Second Edition; Ottawa (http:// www.infoexport.gc.ca) 242 MARKET RESEARCH CENTER / CANADIAN TRADE COMMISSIONER ed. (2000): How to Partner in Mexico; Ottawa (http://www.infoexport.gc.ca) MARKET RESEARCH CENTER / CANADIAN TRADE COMMISSIONER ed. (2000): Steps Towards Entering the Mexican Market; Ottawa (http://www.infoexport.gc.ca) NOBLE, JOHN ET AL. (2000): Mexico – From Copper Canyon to Chichén Itzá; Melbourne et al.: Lonely Planet Publications (Lonely Planet Guide; http://www.lonelyplanet.com) OECD ED. (2002): Economic Surveys – Mexico; Paris: OECD (http://www.oecd.fr or http://www.oecd.org) PERLITZ, MANFRED (2000): Internationales Management; 4. Auflage; Stuttgart: Lucius & Lucius PIRCHER, ERICH H. (2000): Die Wirtschaft Mexikos – Ein Modell zwischen Euphorie und Bangen; in: Die Volkswirtschaft, Vol. 73, Iss. 11, pp. 36-43 (http://www.seco.admin.ch) PWC PRICE WATERHOUSE COOPERS ed. (2001): Doing Business and Investing in Mexico (http://www.pwcglobal.com) PWC PRICE WATERHOUSE COOPERS (2002): Reformas Fiscales 2002; Mexico City: PWC (http://www.pwcglobal.com/mx) RUDNER, NICOLE (1996): Der mexikanische Wirtschaftsstil; München: Dr. Theo Eberhard Verlag SAT – SERVICIO DE ADMINISTRACIÓN TRIBUTARIA – ADMINISTRACIÓN GENERAL DE ADUANAS ed. (2001): Guía de Importación a México; Mexico City; SAT (http://www.aduanas.sat.gob.mx) SCHWEIZERISCHE NATIONALBANK ed. (2001): Die Entwicklung der Direktinvestitionen im Jahre 2000; in: SNB Quartalsheft, No. 4/ 2001 SECRETARÍA DE ECONOMÍA – SUBSECRETARÍA DE NEGOCIACIONES COMERCIALES INTERNACIONALES – DIRECCIÓN GENERAL DE INVERSIÓN EXTRANJERA ed. (2001): Inversión de Suiza en México (http://www.economia.gob.mx) 243 SIEMSEN, HAYO and CARSTEN GERZ (1998): Focus Mexiko – Visionen und Tips für die intelligente Markterschliessung; Ed.: DEUTSCHE INVESTITIONS- UND ENTWICKLUNGSGESELLSCHAFT MBH; STAATSSEKRETARIAT FÜR WIRTSCHAFT SECO ed. (2001): Rapport économique annuel sur le Mexique; Bern: Seco (http://www.seco.admin.ch) UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT (2001): World Investment Report 2001 – Promoting Linkages; New York/Geneva: United Nations (http://www.unctad.org) UNITED STATES DEPARTMENT OF STATE ed. (2001): Mexico – Country Commercial Guide FY 2002; Washington: USDOS (http://www.usdos.gov) WILSON LEARNING CORPORATION ed. (1999): Dos and Don’ts in Mexico – The Traveler’s Guide to Culture. WORLD TRADE ORGANISATION ed. (2002): Trade Policy Review – Mexico; Report by the Secretariat / Report by the Government; Geneva: WTO; http://www.wto.org ZIMMERMANN, THOMAS A. (2002): ”Perspectivas México”: Handels- und Investitionsförderung für einen strategisch wichtigen Markt; in: Die Volkswirtschaft, Vol. 75, Iss. 3, pp. 55-61 (http://www.zimmermann-thomas.de)