Mexico Business Etiquette: What to Wear

Figuring out what to wear can be difficult anywhere, but how should you dress when you are doing business in Mexico?  I always tell people who are doing business in Mexico to err on the conservative side, but make sure you are dressing appropriately for your line of work and location. 

For example, if you are meeting with a real estate developer in Cancun, as a male you would want to wear something more casual, like a guayabera and linen pants.  Ladies should wear either a dress or a skirt and nice top.

If you are doing business with anyone in Mexico City, the standard for men is a suit and tie (YES I said tie :)) and the standard for women is a nice blouse with dress pants or a conservative dress.  If it is a more relaxed environment, men should still wear a long sleeve button down, as short sleeves are considered for the beach areas.

The other big cities in Mexico, Monterrey and Guadalajara, seem to have a less formal dress code overall and that is partly to do with the weather being warmer.  Women put a big effort into their appearance all over Mexico which means hair is done, lots of makeup, and jewelry.  You will find that both men and women love fragrance in Mexico,

Please never, ever, ever under any circumstances wear shorts unless you are at the beach on vacation in Mexico!!!

Headhunters in Mexico

Whether you are looking to fill a position for your business or just looking for a change of career yourself, headhunters are a great resource to use.  In the United States, headhunters are a dime a dozen.  Between staffing agencies and boutique firms, there are a number of options to choose from to suit your needs.  Finding a headhunter in a foreign country who really knows what they are doing isn't easy.  Below I've compiled a list of some of the best headhunters in Mexico:

Barbachano International - http://www.bipsearch.com/

Korn Ferry - http://www.kornferry.com/

Shore - http://www.shore.com.mx/

Smith Search - http://www.smithsearch.com/

Heidrick & Struggles - http://www.heidrick.com/

QualiFind - http://www.quali-find.com/

Each of these headhunters has expertise in a certain area.  Hiring for a position at a multinational in Mexico City requires a different skill set than hiring a factory manager for your maquiladora in Mexicali.  Mexican labor law can be complicated, so it is best to consult with a Mexican headhunter to learn about all of the ins and outs of employment law. 

Mexico #1 for lowest corporate taxes according to KPMG

Viva Mexico!  KPMG has listed Mexico as the number one nation for lowest corporate taxes.  Number 2?  Canada, another NAFTA partner. 

The study takes into consideration capital tax, income tax, sales tax, property tax, local business taxes and taxes related to labor.  Mexico has a flat sales tax, called IVA (impuesto al valor agregado) which this year rose to 16%. 

The US is automatically scored at 100, while Mexico had an overall score of 59.9 and Canada 63.9.

Here are the top 10 corporate tax friendly nations according to KPMG:

1. Mexico
2. Canada
3. Netherlands
4. Australia
5. UK
6. US
7. Germany
8. Italy
9. Japan
10. France

If you would like to read more about the tax study and Mexico, please click here.

Mexico has its eye on Russia

Mexico's SAGARPA (Secretary of Agriculture and Rural Development)  are currently participating in a trade mission to Moscow, Russia.  The purpose of the trade mission was to promote Mexican meat and produce in Russia, while Mexican buyers are looking at Russian minerals and wheat.  There are 38 small businesses from Mexico participating in the trade mission.

Mexico has a good history of trade relations with Russia.  Mexico is considered a "favored nation" in Russia, which means it enjoys discounts on trade tariffs of up to 25%.

A few trade facts about Russia:

• Russia is the world's 5th largest food importer
• Trade between Mexico and Russia grew 79% from 2000 to 2007
• Russia is part of the BRIC (Brazil-Russia-India-China) economic block
• Russia's main exports include: aluminium, steel, nickel, copper, helicopters and plastic
• Russia's main imports include: automobiles, machinery, televisions, medicine

Weekly Currency Update: Mexican Peso

The Mexican Peso is trading today at $12.71 MXN = $1 USD.








This week's important economic events:

• Declining sales of US homes sparks fears that recovery in the US (and subsequently Mexico) could be slower than expected
• China relaxed the Yuan's fixed rate
• Mexican stocks end higher, led by America Movil and Bimbo
• Recovery in Mexico bank lending supposed to see double digit growth in 2010

Manufacturing Coming Back to Mexico

Recently I've come across several articles that discuss how many American companies are bringing their manufacturing BACK to Mexico from Asia.  While many people considered China to be the lowest cost option for their manufacturing needs, China has now surpassed Mexico in terms of manufacturing affordability.

One of the great advantages that Mexico has over China when it comes to outsourcing is its proximity to the US.  Need an emergency shipment?  Your goods can be flown in within a couple of hours.  Another huge advantage are that the US and Mexico share the same time zones.  Most of Mexico is on Central time, which makes working with both coasts very easy.  When you are under tight deadlines, having to stay up late or wait an entire day for a response can break you.

Mexico Business Etiquette: Ready, Set, WAIT!

It's 9:50am.  You arrive at the building, excited at the prospect of the business relationship you are about to develop in Mexico.  You give your name to the receptionist and let her know you are there for your 10am meeting.  She politely smiles and tells you to have a seat.  You sit down and start thumbing through the industry magazines on the table next to you.  10am comes and goes, 10:15...10:30...10:45...What is going on?  You start to tap your feet and try to make eye contact with the receptionist who is busy doing her own thing.  Did he forget the meeting?  Surely not, you confirmed a couple of days ago.  Did something else come up?  Not likely - or the receptionist would have told you.

For those doing business in Mexico this is probably one of the hardest lessons to learn - the difference in the concept of time.  Sometimes the wait is intentional.  For example, many times retail buyers will make you wait on purpose just to show you how "important" they are.  Silly power trip?  Yes, but it is a way of life in Mexico and you must learn to roll with it if you are going to be successful.  Other times, the wait is due to circumstances out of their control, like traffic.  In Mexico City, sometimes going to the same place can take 30 minutes or up to 2 hours!  Imagine trying to plan your day knowing that. 

My advice for foreigners doing business in Mexico?  Be patient, learn to go with the flow, and always bring something to read! :)