Mexican Business Etiquette: Who pays?

The question of who pays for a business meal is confusing for a lot of people, even within their own country, so when you throw another country and culture into the mix it gets confusing.  Let's say you are traveling to Monterrey, Mexico to meet the general director of a maquiladora who will be manufacturing parts that you will sell in the US.  The general rule is this: if you are the party that is seeking the business relationship, you should pay.  However, you will find that most of your Mexican partners will insist on picking up the bill since they feel like hosts and because you took the time to travel to visit them. 

Note - a single woman should never ask a man out to a business lunch unless there is another party invited (her business associate, his business associate, etc).  It may sound old school, but you will aboid the chance of putting yourself in an uncomfortable position.  If you have to have the meeting alone for whatever reason, make sure it is in a neutral place, like the restaurant of your hotel.  It is not common for women to pick up the check in Mexico, even if you are the one that proposed the meeting in the first place.

The most important thing when it comes to the bill is to never make a scene.  If your Mexican business partner (or potential partner) agrees to pay, gracefully accept and show your gratitude. 

General Motors to invest big bucks in Mexico plant

By Paul Kiernan Of DOW JONES NEWSWIRES MEXICO CITY
(Dow Jones)--U.S. automobile giant General Motors Co. said Tuesday it plans to invest close to $500 million in its Ramos Arizpe plant in northern Mexico to produce a new line of engines as well as a new vehicle.




Of that amount, the company is investing $284 million to manufacture eight-cylinder engines with spark-ignition direct-injection technology, known as SIDI, Grace Lieblein, chief executive of GM de Mexico, said at an event.



"We estimate that these technologies allow for a 9% improvement in fuel efficiency from current engines," Lieblein said, adding that the investment will directly create 390 jobs in Coahuila state, where Ramos Arizpe is located.



Another $215 million will go toward upgrading the factory's production lines to build a new vehicle for the domestic and international markets, she said, noting that the investment will be key to maintaining 400 jobs.



Assembly of the vehicle, which wasn't named, is set to begin in the last quarter of 2011. GM plans for it to "give long-term viability to this plant by gradually substituting some production volumes."



Lieblein said General Motors has invested $4.1 billion in Mexico over the last four years.

The importance of a good translation

How many times have you looked at a product or marketing copy and laughed because the wording just didn't seem right?  It happens all the time.  Someone within the company may claim to speak another language and be able to handle the translations for the marketing department, and next thing you know they've got thousands of brochures printed with an incorrect translation. 

What many people fail to understand is that speaking another language fluently does not mean that you are able to translate in that language.  Many people translate literally, which is a mistake.  Think about all of the expressions we have in English that if translated directly would sound very strange (the earlybird gets the worm for example).  When translating, you must convey the meaning of the phrase in the proper context.

I know that many companies get scared off when then start to get quotes for translations because they never expected prices to be that high.  "Google has a free translator, can't I just use that?" they think.  Just as you would entrust a graphic designer to handle your logos and corporate identity, you should pay a professional translator to work on your translations.

A funny video on interpretation in 7 languages:

Weekly Currency Update: Mexican Peso

Today the Mexican Peso is trading at $12.52 MXN = $ 1 USD.


Events this week affecting the Mexican economy:

• US employment data (more jobs added in July) lifted the peso to a five week high
• US stocks were up, causing peso to strengthen
• According to Hacienda, 559,700 new jobs have been created in Mexico in 2010, over 60% of them permanent

Mexicana Airlines Files for Bankruptcy

The biggest news this week in the Mexican business world is Mexicana airlines filing for bankruptcy.   Mexicana has stated that this should not affect currently scheduled flights, but Several flights to the US have already been cancelled including 4 daily flights between Mexico City and Los Angeles. 

The decision to file for bankruptcy comes after the unions failed to agree to the new cost-saving measures that Mexicana had proposed.  Mexicana also had debts which exceeded $1 billion USD, due in part to the drop in tourism last year caused by the swine flu. 

According to Mexicana's president the average salary of a Mexicana pilot is around $220,000 USD/year.  The average salary for a flight attendant is around $53,000 USD/year.  These are considered very, very good salaries in Mexico.  Just to give you an idea, the average minimum wage per day in Mexico is around $4.50 USD/day!!!

Mexicana has two affiliate carriers which will not be affected by the bankruptcy - MexicanaLink and MexicanaClick. 

It will be interesting to see how other carriers step in and handle the passengers who use to travel exclusively on Mexicana.

Trade Shows in Mexico

A great way to start to do business in Mexico or check out a particular industry is by attending a trade show.  Mexico is home to a number of big industry trade shows, and they are held all over the country - Mexico City, Monterrey, Guadalajara, Cancun, Los Cabos, etc. 

Below is a list of different venues and their calendars:

MEXICO CITY

Centro Banamex

Expo Bancomer

World Trade Center

GUADALAJARA

Expo Guadalajara

MONTERREY

Cintermex

Mexipreneur: What would you like to see

I started this blog with the two main ideas in mind.  One, to provide tips on setting up a business in Mexico with nitty gritty details that other websites may leave out.  Two, to provide interesting information on what is currently going on in the Mexican business world. 

Now I would like to know....what would YOU like to see?  What is most useful/helpful to you the reader? 

-Interviews from other expats doing business in Mexico?
-Spanish business terminology?
-Business ideas?
-ETC....

Feel free to leave comments below or shoot me an e-mail!