MEXICO

Ginna Casadiego Paul Castro Nasha Hassim

Bryan Simpkins Daisy Nino Alejandro Saavedra

Currency 1 USD = 15.4 MXN

Cultural Environment

Social Environment

⦿ Language

⦿ Treatment

⦿ Transportation

⦿ Poverty

Legal System

⦿ Federal/Public Law○Legislative○Executive○Judicial

⦿ State Law

⦿ Court System

Mexico’s State Law

⦿ 31 States

⦿ Each of them have their own Constitution. Similar to U.S.

⦿ Most State laws tend to be of administrative and promotional nature than legal

Court System

⦿ No jury trials⦿ No application of the principle stare decisis⦿ No class action law suits⦿ No Bar Exams for Mexican attorneys⦿ No professional regulation of attorneys by state/local Bar

associations⦿ No elected judges⦿ Legal education is at undergraduate level and consists of 5

years

Real Estate Issues

⦿ Deregulation of restricted zone in 1990’s (Prohibited Zone)

⦿ Zone is the band of national territory within 100km along the border and 50km along the shoreline

Ownership Issues

⦿ Law now permits Mexican corporations with a majority of foreign capital to acquire properties inside these deregulated regions

⦿ Deed is held at a bank, acts as a fiduciary. Similar to U.S. system for real property.

Forms of Enterprise

⦿ Corporation and also w/variable

capital

⦿ Partnership and also w/variable capital

⦿ General partnership

⦿ Professional general partnership

⦿ Limited partnership

⦿ Limited partnership w/ownership

interests

⦿ Cooperative association

Mandatory Employee Benefits

⦿ Profit Sharing - Pay 10% of pre-tax profit within 60 days after tax return

⦿ Christmas Bonus – equal to at least 15 days of wage; payable before Dec 20

⦿ Paid Holidays – 9 paid holidays, if holiday is worked paid OT of 3X normal wage

⦿ Training – Employer are obligated to provide training

Severance Payments

⦿ Mexican employers cannot freely dismiss employees without cause:

⦿ 3 months of salary

⦿ 20 days of salary for each year of service

⦿ Seniority Premium – equal to 12 days salary per year (limit of twice the minimum wage.

Trademarks

⦿ Protected for 10 years

⦿ May be renewed for an additional 10 years, indefinitely.

⦿ “Well Known Trademark” is now included in legislation.

⦿ iFone received money from Apple & the 3 mobile service providers for infringing its trademark.

Trade Balance⦿ Mexico averaged a trade

deficit of -237.08 USD Million from 1980 until 2015

⦿ Mexican trade gap widened to USD 3248 million in January of 2015 from a USD 3182 million shortfall a year earlier. 

⦿ Mexico has the 23rd largest overall trade deficit at -11 billion dollars

Main Trading Partners⦿ NAFTA

⦿ In 2012, agricultural exports from the United States to Mexico totaled USD 18 billion, while agricultural exports from Mexico to the United States totaled USD 16 billion.

⦿ For the United States, this represented almost 14% of agricultural exports, while 60% of Mexico’s agricultural exports go to the United States.

⦿ The United States is Mexico’s largest trading partner, buying 77.5% of Mexican exports

Trade Barriers⦿ Under the NAFTA, there are virtually no tariff barriers for U.S. exports

to Mexico

⦿ Import licenses and minimum estimated prices

⦿ Corruption

⦿ The Secretariat of Economy requires import licenses for weapons and ammunition, used goods, and refurbished equipment, among others●Leather●Fur●Chilled meats●Machinery

Trade Agreements⦿ Mexico has a total of 12 free trade agreements involving 44

countries●United States●Canada●Chile●Colombia●Israel●Japan●Etc

Government Subsidies for FDI⦿ ProMexico is the country’s federal entity charged with promoting

Mexican exports around the world and attracting foreign direct investment to Mexico.

⦿ ProMexico attracted 104 investment projects totaling $13.52 billion, a 27% percent increase from 2010. In the first quarter of 2012, ProMexico attracted 54 projects totaling $7 billion.

⦿ http://www.promexico.gob.mx/template/images/logos/promexico-en.png

Economy: System/Indicators

⦿ Unemployment Rate: 4.8% (2014 Est)

⦿ Inflation Rate: 4%

⦿ Population Below Poverty Line: 47%

⦿ Income Distribution: Highly unequal

⦿ $1.3 Trillion Economy

⦿ GDP: $1.845 Trillion (2013 Est)●#11 on World Ranking●1.2% growth from previous year

⦿ GDP by Sector: Agriculture 3.6%Industry: 36.6%Services: 59.8%

Economy: Industries/Absolute Advantage

⦿ Top Industries in Mexico:

●Food/Beverages ●Tobacco/Chemicals ●Tourism ●Clothing/Textile ●Petroleum

⦿ Absolute Advantage: ●Tequila ●Tourism: Beaches

Economy: Reforms ⦿ President Pena Nieto Reforms

●Goals: ○Break current monopolies ○Increase government revenue○Redistribute tax burden/Raise taxes on the wealthy

○Taxing capital gains/dividends ○Create universal pensions○Encourage lenders to extend credit

Economy: Mexico’s Elite Citizen⦿ Mexican Carlos Slim, world’s richest man

⦿ Conglomerate- over 200 companies

⦿ Main Industries:●Telecommunications/Mining/Entertainment

⦿ Monopoly

⦿ Threats

⦿ Opportunities

Work Cited⦿ http://www.goinglobal.com/articles/22/⦿ http://www.promexico.gob.mx/⦿ http://www.ey.com/Publication/vwLUAssets/Country_Insights:Mexico_highlights/$FILE/Growing_Beyond_Mexico_highli

ghts.pdf⦿ http://www.mexlaw.com/best_websites/1_introduction.html⦿ http://www.mexconnect.com/articles/13-doing-business-in-mexico-general-legal-business-entry-issues⦿ http://www.ey.com/Publication/vwLUAssets/EY-doing-business-mexico-2011/$FILE/EY-doing-business-mexico-2011.pd

f⦿ http://www.ttb.gov/itd/mexico.shtml⦿ http://latino.foxnews.com/latino/money/2013/03/18/ifone-or-iphone-mexican-company-wins-lawsuit-over-apple-to-us

e-name/⦿ http://www.naftanow.org/results/default_en.asp⦿ www.cia.gov⦿ http://www.kwintessential.co.uk/resources/global-etiquette/mexico-country-profile.html⦿ www.doingbusiness.org⦿ www.wface.com