For foreigners. Para extranjeros: Mexico as a business destination
Mexico does not only offer a great potential to Mexicans, but also to every foreigner that can see the potential in the country and that knows in which areas she/he has to commence business activities.
In this page we offer you general relevant information about the country, so you can get an idea of what Mexico can offer you and your business partners.
Facts and figures
Mexico is the most populous Spanish-speaking country in the world, with around 113 million people. It is a middle income country. And around 70% of its inhabitants live in urban areas. The Mexico metropolitan area has around 21.4 million people, making it the largest populous area in the western hemisphere.
During the last two decades, specially after the Mexican crisis of 1994, Mexico has been undertaking a process of change. In particular, Mexico is transitioning from being a maquila producer and petrol exporter to an open and diverse economy. As an example of that, the country was almost not affected by South American crisis of 2002. If was only in 2008 when Mexico felt a financial crisis again. However, it was an international crisis that touched almost every country, especially its big brodering country, the USA.
Until now, the Mexican economy has a mixture of efficient and outdated business behaviours in most of its sectors. However, the small oasis of efficiency have been steadily gaining place through the years. Recent improvements in infrastructure and liberatization carried on by President Peña Nieto might prove to be fruitful in the years to come.
Mexico in the world economic context
Mexico’s rate of growth might have not been as astonishing as that of the Chinese, but it has been stable and sustainable. Therefore, Mexico might soon become the fifth economy in the world measured by its total economic wealth. Within Latin America, it enjoys a business-friendly reputation, if compared with other countries such as Brazil and Argentina. The good perspectives of both the USA and China, its main trading partners, confirms the positive trend of the Mexican economy as a whole.
Member of the G8+5, it is recognized by international investors for its attracting market potential, which is improved by the stable logistics and trade relationships that it maintains all over the world. At the moment, the most pressing topics for the goverment are the reduction of inequality and the creation of jobs, two areas where Mexico has not achieved the best scores so far.
Partnership with a Mexican company
In Mexico, you can either merge with a Mexican firm, acquire a firm or have a Mexican business partner. In the first case, you can create a company where the merging companies lose their separate legal existence, or you can absorve the Mexican company into yours. In case of an acquisition, it proceeds only if you purchase shares in the Mexican company or if you acquire assets of the business.
The third case is usually offers you a broader scope, because you can gain a know-how about doing business in Mexico while keeping the independence of your core business. You can work in specific projects with your Mexican peers, which tend to become long-term trustable partners.
You can underestimate the difficulty of commencing business activities in a country taht is so close to the USA. However, in this globalized world, understanding cultural nuances and working close with partners that know the market in depth are key to the success of your enterprise.
That said, beware of overlooking important regulation that describes the legal steps you have to follow, such as the Federal Antitrust Law, the Foreign Investment Law or the General Corporation Law. Besides, remember that entrepreneurs have barries to entry in the following industries: energy, natural resources exploitation, telecommunication, transport (railway, maritime, ground transportation, airports), among others.