Conducting International Businessin Mexico

International BusinessIn Mexico!

M.G. Quintana

Introduction

International Trade

Steps to Conduct International Business

Quotas and Tariffs

Foreign Exchange Rate

Determination of Exchange Rates

Effects of International Trade on GDP

Strategies for Success

International Trade Between Mexico and the US

• Within 10 years the amount of

trading has increased by 32.89

Billion.

• In 2012 the amount was at an all

time high

Steps to Conduct International Business

From a Business Perspective

• Meticulously research the

economic conditions and

opportunities.

• Market Entry Strategy, this is the

analysis and evaluation of how

your business will look if you

expand.

Legality Perspective

• Hire a good lawyer who will

explain all your responsibilities

and liabilities moving forward.

• Register your business and name

your corporation.

Quotas and Tariffs

• Quotas and Tariffs do exist on

several items in Mexico.

• In order to advise you accurately

we will need a list of what you are

planning to export.

• Wide variety of quotas and tariffs

in Mexico on several items.

Foreign Exchange Rate

• 1.00 MXN = .0773 USD

• 1.00 USD = 12.935 MXN

*Exchange rates current as of

September 16, 2013 9:28PM UTC

How Are Exchange Rates Determined?

• Supply and Demand.

• If demand rises or supply falls the

rate goes up.

• If demand falls or supply rises the

rate goes down.

Effects of International Trade on GDP

• NAFTA

• Outsourcing

• Illicit Trade

• Current Quagmire

• NAFTA

• Insourcing

• Illicit Trade

• Accountable GDP

Strategies For Success

• Hire a Bilingual Team Member

– With Professional

Communication Skills

– With Vast Understanding of

the Business Culture in

Mexico

Strategies For Success

• Have Written Plans

– Sales Goals

– Evaluate and Make

Recommendations

• Budget

• Secure Credit Line

Strategies For Success

• Designate Strategic Planning

Work Team

– Only 41% of Small Business

do this

– Taxes

– Labor Laws / Legalities

Conclusion

• International Trade

• Steps to take in order to conduct business

• Quotas and Tariffs

• Foreign Exchange Rate and How it is Determined

• Strategies for Success

• Questions?

References

Malkin, Elisabeth (2012, December 25). Mexico Finds Unlikely Allies in Trade Fight. The New York Times. Retrieved from http://www.nytimes.com