After recently attending a meeting in Mexico City as the worldwide president of IPREX, a global network of communication agencies, I came away with some interesting takeaways about doing business around the world.
IPREX’s purpose is to offer strategic communications excellence to clients – wherever their businesses take them – and these four insights were particularly relevant for conducting business in Mexico.
Mexico is a diverse country with different regions. Mexico is commonly perceived as one region, but that could not be further from the truth. Mexico is divided into 31 states, and one federal district, each with a different geography, culture, lifestyle and different business practices.
Mexico is a sophisticated country for doing business. In a 2013 Global Competitiveness Report from the World Economic Forum, Mexico was ranked 55 out of 148 total countries in business sophistication. This puts the country in a high percentile of countries with accredited business sophistication, which is defined as the quality of a country’s overall business networks and the quality of individual firms’ operations and strategies.
Mexico is a relatively easy country in which to start a business. Consider Mexico’s rank by the World Bank and International Finance Corporation (IFC) of 36th for ease of starting a business. While challenges to starting a business exist in any country, risks from issues like shipping and labor supply are managed well in Mexico.
Mexico’s cultural differences facilitate close business relationships. Personal relationships are highly valued in Mexico’s business environment. This cultural difference helps foster closer ties between business partners and encourages open communication and effective cooperation.
Overall, a booming economy and loyal partnerships make Mexico a great place to do business, and expanding there offers the potential to help grow your business. In fact, many economists are predicting that Mexico will be a hot bed of business activity during the remainder of this decade.