Business Plan for Mexico

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Executive Summary

1. Introduction

COUNTRY OVERVIEW

2.1 Geographic Location

Mexico, a member of NAFTA, is located in North America, which shares the border with Guatemala and Belize. Moreover, Mexico lies on the Tropic of Cancer which is also called Northern Tropic. The capital of Mexico is Mexico City. Mexico has lush land for doing business and has covered an area of 1,972,550 square kilometers with 31 states and 1 federal district. In addition, Mexico is the 5th largest in U.S.A. and rank 14th largest in the world (Central Intelligence Agency, 2010).

(Adapted from worldatlas.com, n.d.)

Official name: EstadosUnidosMexicanos (United Mexican State) Geographic Coordinate: 19°03'N, 99°22'W
Largest Cities: Mexico City, Guadalajara, Ecatepec, Puebla, Netzahualcoyotl. Climate: Tropical to dessert

2.2 Population

In July 2009, the Bureau of Western Hemisphere Affairs estimated the population of Mexico is 111,219,789 people, which makes Mexico to be the 11th largest population in the world. First language in Mexico is Spanish yet English is used only in business This nation has 1.13 percent of population growth rate annually., which helps a lot for foreign to do business in Mexico. Since majority of Mexican are people who immigrated to Mexico from South America, Peru, Argentina, Venezuela, Cuba and Brazil, 60 percent population ethnicity is Indian-Spanish, Indian makes up 30 percent, Caucasian is 9 per cent and others are 1 percent (U.S Department of State, 2010). Below are the charts presenting age group, literacy rate for adults, and life expectancy of Mexican. Most of Mexican population is in age range of 15 to 65, and has increased steadily since 1975 according with the population increasing. Mexican life expectancy is relatively 5 years higher than world average and is also increasing with the trend. Life expectancy for male is approximately 70 years old and female are a little higher which is 76 years old (World Resources Institute 2006).

(Source: prelive.earthtrend.org 2006)

Literacy rate gap between women and men has decreased in 2000 compared with 1980. In Mexico, the basic education level is divided into 3 levels. They are primary (grade 1 to grade 6), secondary (grade 7 to grade 9) and high school (grade 10 to grade 12). The new law introduced in 2001 stated that it is compulsory to finish studies until grade 9 for Mexican. According to U.S. Department of State (2010), the literacy rate of Mexican is 91.4 percent.

As the population age in Mexico are majority between 15 to 65 years old, the area in commerce, services, manufacturing, construction, transportation and communication stands a high percentage of trade which is 16.9 percent, 32.3 percent, 18.7 percent, 5.6 percent and 4.5 percent respectively. Whereas agricultural area has became less popular and stands only 21 percent of trade, including the group of agricultural, foresting, hunting and fishing. In addition, mining and quarrying stands only 1 percent. The growth rate in Mexico is 1.9 percent which is slightly higher than the World’s growth rate of 1.6 percent.

Mexican National Flag
2.3 Government
The United Mexican State won the Independence Day on 16 September 1810 after 12 years of armed conflict with Spain. Currently, the President of Mexico is Filipe Calderon of the National Action Party (PAN), which is one of the major Mexican political parties. He was elected on 2006 for a six-year term through 2012. There are 8 political parties in Mexico, including National Action Party (PAN), Institutional Revolutionary Party (PRI), Party of Democratic Revolution (PDR), Labour Party (PT), Green Ecological party of Mexico (PVEM), Convergence, Social Democratic and Farmer Alternatives and New Alliance (Mexico Political Parties 2005).

In Mexico, judiciary is divided into federal and state court system. Federal court has included Supreme Court with 21...
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