portfolio IMI
For Your Immediate Action:
Potential problems we might face in moving into the Mexican market:
1) Mexican culture has many differences when comparing it to other cultures, such as the American culture. First of all, the US tends to place business contacts above personal relationships and the communication skills vary widely between the two cultures. Therefore, when moving into the Mexican market friendships between businesspeople need to be formed in order to be more successful in doing business. Many Mexicans also try to avoid disagreements, so may tend to not say no in an instant, but just say ill get back to you (although they wont), so may cause time to wasted when you are waiting for a response. There is also a less strict sense of time when comparing the Mexican culture to the American culture, so this may become a problem for Americans to do business with Mexicans, as they will need to be very patient. Mexicans also find certain things rude, such as throwing documents on the table when negotiating, too much eye contact, the O.K had gesture, handshakes with women and not having enough personal space. It is clear that there are many cultural differences that could cause potential problems when moving into the Mexican market.
2) The current exchange rate from the US dollar (USD) to the Mexican Peso (MXN) is 1(MXN) = 0.076 (USD). Over the past 3 years the currency exchange has been pretty stable between the US dollar (USD) to the Mexican Peso (MXN).
3) Mexico has suffered and is still suffering problems with drugs. There are constant drug problems that the government tries to fix, but when moving into the Mexican market this can still cause a huge problem, as it is hard to know if other companies are involved with illegal drug activity.
Works Cited:
http://useconomy.about.com/od/worldeconomy/p/Mexico_Economy.htm
http://www.economist.com/news/leaders/21567081-america-needs-look-again-its-increasingly-important-neighbour-rise-mexico
Potential problems we might face in moving into the Mexican market:
1) Mexican culture has many differences when comparing it to other cultures, such as the American culture. First of all, the US tends to place business contacts above personal relationships and the communication skills vary widely between the two cultures. Therefore, when moving into the Mexican market friendships between businesspeople need to be formed in order to be more successful in doing business. Many Mexicans also try to avoid disagreements, so may tend to not say no in an instant, but just say ill get back to you (although they wont), so may cause time to wasted when you are waiting for a response. There is also a less strict sense of time when comparing the Mexican culture to the American culture, so this may become a problem for Americans to do business with Mexicans, as they will need to be very patient. Mexicans also find certain things rude, such as throwing documents on the table when negotiating, too much eye contact, the O.K had gesture, handshakes with women and not having enough personal space. It is clear that there are many cultural differences that could cause potential problems when moving into the Mexican market.
2) The current exchange rate from the US dollar (USD) to the Mexican Peso (MXN) is 1(MXN) = 0.076 (USD). Over the past 3 years the currency exchange has been pretty stable between the US dollar (USD) to the Mexican Peso (MXN).
3) Mexico has suffered and is still suffering problems with drugs. There are constant drug problems that the government tries to fix, but when moving into the Mexican market this can still cause a huge problem, as it is hard to know if other companies are involved with illegal drug activity.
Works Cited:
http://useconomy.about.com/od/worldeconomy/p/Mexico_Economy.htm
http://www.economist.com/news/leaders/21567081-america-needs-look-again-its-increasingly-important-neighbour-rise-mexico
Cited: http://useconomy.about.com/od/worldeconomy/p/Mexico_Economy.htm http://www.economist.com/news/leaders/21567081-america-needs-look-again-its-increasingly-important-neighbour-rise-mexico http://www.reuters.com/article/2013/10/20/us-autos-mexico-investment-insight-idUSBRE99J04Y20131020