Doing Business in Mexico Empowering employees in Mexico presents a different series of challenges than in the United States. Mexico’s hierarchical and authoritarian tradition makes it extremely difficult for managers to delegate responsibilities to their employees—something any manager or director must do to run an efficient business. Empowerment in Mexico can be successful, though, if […]
Continue ReadingDoing Business in Mexico Favors are done in every culture, but how favors are given and received differs among cultures. Comparing the mainstream U.S. culture and Mexico regarding this issue, we find striking differences, which often lead to important misunderstandings among people. In the U.S., informal favors are seen as voluntary actions, which nevertheless create […]
Continue ReadingDoing Business in Mexico Like many other authors, I have often commented about the “trust” issue in business. According to author Francis Fukuyama, “trust” is a human capital that determines the way society develops business. “Trust,” according to Fukuyama, is the probability within a culture that two people who do not know each other are […]
Continue ReadingDoing Business in Mexico When I was in college, national development was a hot topic. We pondered over why some countries develop their economies faster than others. One popular notion was that for countries to develop quickly, their citizens had to have a strong internal sense of control and see their destiny as residing in […]
Continue ReadingDoing Business in Mexico A reality of any manager’s life is attending and calling staff meetings. Another reality is that most managers complain staff meetings are a “waste of time.” When meetings involve Mexican and Anglo-American managers (including most Canadians in the second group), the issue of time-management becomes salient, and in my experience, one […]
Continue ReadingDoing Business in Mexico When U.S. executives are sent to Mexico, they soon hear that Mexicans are “indirect” and “will not give you a straight answer, “especially if what needs to be communicated is unpleasant.” Thus, the generalized statement about the Mexican “vagueness” is often heard among foreigners residing in Mexico. But vagueness is only […]
Continue ReadingDoing Business in Mexico The topic of business ethics is one that too often ends up on the back burner, unless you happen to be a social activist. In business circles, the topic arouses as much interest as a turtle race. The logic of business, chiefly concerned with profit maximization, usually places ethics within the […]
Continue ReadingNote: The Mexican tax system has been updated numerous times since this article was first published; always check with a reputable accountant for up-to-date information. The Mexican tax system has been subjected to comprehensive tax reform legislation, enacted principally in 1986 and 1988. The dramatic changes are an attempt to make it compatible with the […]
Continue ReadingImporters will use a customs broker (a private-sector provider of services) of choice to obtain release of the merchandise. The customs agent will provide to importers all necessary information relating to applicable duties and non-tariff regulations. The customs entry will be accompanied by: the commercial invoice, when the customs value of the merchandise is determined […]
Continue ReadingThis may not sound like a Mexico real estate or home maintenance issue, but I thought my experience was worth sharing. Recently, my wife and I purchased a Mexico vacation package offered by our bank. And after various delays, we finally managed to take the kids to Puerto Vallarta for a four-night stay at one […]
Continue Reading