Mexico is located next to America, and is a very unique country to do business in.
When I say business in Mexico many of you can think of reasons why not to do business there. I’m sure most of you have heard at least one story about drug trafficking or violence happening in Mexico. And its true! Corruption is prevalent! Mexico is in fact majorly lagging in promoting the rule of law and strengthening the legal framework so this can be a risk for firms. Also, there is problem of monopoly power in key sectors of the economy. This means it is difficult for businesses to enter the market.

But what many of us didn’t know are the reasons why you should do business is mexico is that it is the 50th freest economy with improvements in investment freedom, trade freedom, and monetary freedom since last year. Moreover the regulatory framework has been reformed to facilitate entrepreneurial activity. Mexico is also well known for its cheap labour and its proximity to the US which can prove handy to firms.

When doing business in Mexico it is important to be aware of their strict traditions and customs. We broke down Mexico’s culture into sections using Hofstede’s dimensions and basically we want to share a few tips with you if any of you do end up doing business in Mexico.

So the main language in Mexico is Spanish, but English levels vary so a Spanish translator can be helpful.

Also Mexico is also considered a collectivistic society so business relationship in Mexico is very much based on personal relationships. So it is important to build a personal relationship with your partner before you deal business with them.

Mexico is also considered a collectivistic and tend to have hierarchical structure, so key decisions are made by a few key people at the top. So once again its about knowing the right people.

Mexico is a masculine society, so visiting female executives may encounter few if any problems.

Finally Mexicans have a flexible perspective on time. This means they are less rigid in regards to punctuality and it is not unusual for meetings to start late or run overtime.

Some final tips we found was that Mexicans tend to show open signs of emotion, through the use of interruptions and speaking loudly. While we might see this as rude, in Mexico this is seen as a sign of active engagement rather than an unnecessary loss of control.

Also people in Mexico stand much slower to each other and have far stronger eye contact than in many other cultures.

Finally Mexico is quite status conscious and successful people are expected to look successful so it is important to dress to impress in both business and social situations.