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Mexico: Country Profile

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Submitted By Jace03
Words 1643
Pages 7
Country Profile: Mexico
Jacey Bennett
20121061
International Business Management
MGMT3607
Dr. Dannie Brown
Tuesday November 20, 2012

Country Profile: Mexico Mexico is a North American country located south of the United States, north Belize and Guatemala, east of the Gulf of Mexico and west of the North Pacific Ocean. Three main industries in Mexico are mining, manufacturing and tourism. (Encyclopedia of Nations, n.d.) Mexico ranks 14 in the world for its land/water area of 1,964,375 sq km. Natural disasters that may occur in Mexico are earthquakes, volcanos and tsunamis. Mexico’s climate varies from desert to tropical. (CIA, The World Factbook: Mexico, n.d.) The two peninsulas of the country illustrate the changes in the climate from one side of the country to the other. The Baja peninsula is desert like with temperatures reaching 100ºF and above, whereas the Yucatan peninsula is tropical and wet. The Yucatan peninsula contains rainforests and white sand beaches. (World Travel Destinations, Culture and History Guide, n.d.) In recent years, Mexico has rapidly developed its tourism sector, the Yucatan peninsula has grown very quickly. Tourism is the fourth largest source of currency income in the country. (Country Profile: Mexico/economies, n.d) The country’s capital city is Mexico City. The primary language spoken is Spanish but there are an estimated 62 other indigenous languages. Most of the population is Roman Catholic. Mexico is a federal democratic republic containing 31 states and a federal district. The estimated population is 114.8 million. Mexico has a GDP of 1.55 trillion US$ as of 2011 census. (The World Bank, 2011) The standard of living in Mexico is split between the north and south, most of Mexico’s poverty being in the south. The second largest source of income is the income earned by Mexicans, approximately 12 million, working in the United States. Mexico is considered to have an “upper middle class economy”. (Country Profile: Mexico/economies, n.d.)
As previously mentioned, Mexico is considered to be an upper middle class economy. It’s ranked 13 in the world and it’s a free market economy. Income is unevenly distributed between the richer more industrial north and the poorer agricultural south. Approximately 40% of the population live in poverty. Mexico’s economy is highly influenced by the economy of the United States. Exporting is a major contributor to the Mexican economy. The main manufacturing exporting industry is automobiles. Mexico has free trade agreements with 44 countries around the world. Oil is another industry the government is highly dependent on even though it only contributes 3% to the total GDP. (Country Profile: Mexico/economies, n.d.)
Recently, Enrique Peña Nieto from the Partido Revolucionario Institucional (PRI) has been elected as president for the years 2012-2018 inclusive. (The World Bank, Mexico, n.d.)
After becoming a member of organizations such as North American Free Trade Agreement (NAFTA), World Trade Organization (WTO) Asia-Pacific Economic Cooperation (APEC) and Organization for Economic Cooperation and Development (OCED) the legal framework of Mexico has improved. When employing a business in Mexico you must provide a number of employee benefits for example, overtime hours, profit sharing, Christmas bonus, holiday premium, training, minimum wage and paid maternity leave. Government requires a company with holding more than 20 employees become unionized. Employers cannot let go of employees without reason or severance pay. (Mexconnect: Doing Business in Mexico, n.d.) Telecommunications in Mexico for the ‘business people’ is quite advanced in a sense that is visible but as for the people of the country technology seems to be rare. For example, there was 23.26 million out of 108 million people using the internet in 2008. (Mexico – Balance of Payments, n.d.) Mexico has a traditional culture where authority is highly respected and family is very important; both immediate and extended. (Professional Translation Services | Interpreters | Intercultural Communication | Cross Cultural Training, n.d.) Mexico has a hierarchical society meaning people accept hierarchical order. Everyone has a place in society and which no further justification is needed. In organizations centralization is popular, subordinates expect to be told to do things without question and the “boss” is a benevolent autocrat. The society in Mexico is also a collectivistic society where loyalty in member groups - family, extended family and/or extended friends - overrides most other societal rules and regulations. There are strong relationships among the people where they take responsibility for each other, within the ‘member group’. Employer/employee relationships are perceived in moral terms. In a feminine country people like what they do occupationally and have value for what it is. This is not the case in Mexico. People live in order to work categorizing it as a masculine country. Conflicts are solving through fighting them out until their resolved. Managers are expected to be decisive and assertive, emphasis being on equity, competition and performance. Mexico has a very high preference for uncertainty avoidance. There is an emotional need for rules, time is money, people work very hard and precision and punctuality are the norm. Security is an important individual motivation element. (Professor Emeritus - Geert Hofstede, n.d.) Mexico does not portray Hofstede’s long term orientation dimension. Its deep respect for tradition and family portrays a short term orientation dimension. Mexican people believe in fulfilling social obligations and they believe in protecting `ones face`, which is their self-respect and how others view them. (Free Term Papers and Essays, n.d.) The main business activities of Mexico are food and beverages, mining, tourism, textiles, petroleum and manufacturing of chemicals, tobacco, clothing, and motor vehicles. (Grant Thorton, n.d.) In Mexico industries Mexico’s total exports for 2011 were approximately 349.7 billion US dollars compared to 298.5 billion US dollars in 2010. Total imports were approximately 350.8 billion US dollars in 2011 compared to 301.5 billion US dollars in 2010. These figures are calculated based on exchange rates not purchasing power parity. (Free Term Papers and Essays, n.d.) As of November 16, 2012, according to the Bank of Mexico, the ‘FIX’ exchange rate of the Peso was 13.2353. (Banco de México, November 2012) Balance of accounts, outlining only major accounts, in Mexico for 2011 are as follows: Current Account -11,073,000 US$ Capital Account 41,961,000 US$ Errors & omissions -2,450,000 US$ Change in International net reserves 28,879,000 US$ Valuation adjustments -441,000,000 US$
As long as the Mexican economy relies on the economy of the US it will not successfully be able to create a trading bloc with countries of South America. Therefore, the future prospect of trade relies heavily on NAFTA’s free trade agreement. If Central American countries along with Mexico grow economically independent in the future it may be possible for a trading bloc of their own. (World Savvy, n.d.) To conclude, Mexico is an attractive business destination and the culture of the people allows for a reliable workforce. Labour wages are much lower than those of the US or Canada which provides an advantage to investors from either country. Improved labour laws also make Mexico a more attractive business destination. The culture is very respectable and the people as well. Mexico has grown since NAFTA came into play and hopes for further growth of the country are present.

References
Mexico - About, Maps, Flag, Weather, Geography, People, Culture & Economy. (n.d.). World Map. Retrieved November 16, 2012, from http://www.mapsofworld.com/country-profile/mexico-information-geography- history.html
Country Profile: Mexico. (n.d.). British Foreign & Commonwealth Office (FCO) Home. Retrieved November 16, 2012, from http://www.fco.gov.uk/en/travel-and-living-abroad/travel-advice-by-country/country-profile/north-central-america/mexico/?profile=economy
Country Profile: Mexico. (n.d.). British Foreign & Commonwealth Office (FCO) Home. Retrieved November 16, 2012, from http://www.fco.gov.uk/en/travel-and-living-abroad/travel-advice-by-country/country-profile/north-central-america/mexico/?profile=today
Mexico. (n.d.). World Bank Group. Retrieved November 16, 2012, from http://www.worldbank.org/en/country/mexico
The World Factbook: Mexico. (n.d). Central Intelligence Agency (CIA) TheWorldFactbook. Retrieved November 16, 20120, from https://www.cia.gov/library/publications/the-world-factbook/geos/mx.html
Encyclopedia of the Nations - Information about countries of the world, United Nations, and World Leaders. (n.d.). Mexico - Location and size, Population, Industry, Mining, Manufacturing, Tourism. Retrieved November 16, 2012, from http://www.nationsencyclopedia.com/economies
Mexico - An Introduction. (n.d.). Geographia - World Travel Destinations, Culture and History Guide. Retrieved November 16, 2012, from http://www.geographia.com/mexico/index.htm
Mexico - Language, Culture, Customs and Etiquette | global-etiquette | resources | Kwintessential. (n.d.). Professional Translation Services | Interpreters | Intercultural Communication | Cross Cultural Training. Retrieved November 17, 2012, from http://www.kwintessential.co.uk/resources/global-etiquette/mexico-country-profile.html
Mexico - Geert Hofstede. (n.d.). Professor Emeritus - Geert Hofstede. Retrieved November 18, 2012, from http://geert-hofstede.com/mexico.html
A Cultural Analysis Of Mexico - Term Papers - Miscellaneous. (n.d.). Free Term Papers and Essays. Retrieved November 18, 2012, from http://essaysforstudent.com/essay/Cultural-Analysis-Mexico/58193.html
Mexico - Country Profile - 2012. (n.d.). Index Mundi - Country Facts. Retrieved November 18, 2012, from http://www.indexmundi.com/mexico/
Summary table details. (n.d.). Banco de México. Retrieved November 18, 2012, from http://www.banxico.org.mx/SieInternet/consultarDirectorioInternetAction.do?accion=consultarCuadroAnalitico&idCuadro=CA3§or=1&
"Mexico-Balance of Payments." Environmental news and information - mongabay.com. N.p., n.d. Web. 19 Nov. 2012. Retrieved from http://www.mongabay.com/history/mexico/mexico-balance_of_payments.html>.
Prospects for the Future. (n.d.). World Savvy. Retrieved November 19, 2012, from http://worldsavvy.org/monitor/index.php?option=com_content&view=article&id=675&Itemid Doing Business in Mexico. (n.d). Grant Thornton. Retrieved November 19, 2012 from http://ssgt.com.mx/pdf/DBinMexico.pdf

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