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Country Briefing Paper Mexico

International Marketing - MARK 4660

Dr. Barbara Ross Wooldridge

University of Texas at Tyler

Ericka Reina
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Country Overview: Location, Population, Borders, Capital and Ethnic Make-Up

Mexico is a country located in the continent of North America, sharing land borders with

United States of America, Guatemala, and Belize. Mexico also borders three bodies of water:

The Caribbean Sea, Gulf of Mexico, and the North Pacific Ocean. Mexico covers a total of

758,449 square miles (1,964,375 sq. km) of land and water area, making it the 14th largest nation

in the world. As of 2012, the population of this country is 114,975,406 and holds a population

density of 153.2 people per square mile (59 people per sq. km). Mexico City, the capital and

political center of Mexico, has a population of 20,063,000, the number 1 most populated city in

the country, and holds the 12th spot as the most populated city in the world (World Atlas).

Mexicos Ethnic make-up is 60% mestizo (Amerindian-Spanish), 30%, Amerindian, 9% white,

and 1% other (Mexico Guide).

Economy

Mexicos currency is the Mexican Peso (MXN), which is currently valued as .053 US

Dollars. Mexicos current unemployment rate is 3.74% as of 2016 (Bloomberg).Trade is

important to Mexicos economy; Mexico is the 10th largest oil exporter according to the United

Nations Commodity Trade Statistics Database. Mexicos top exporting goods also include

vehicles, electrical machinery, medical apparatus, furniture, plastics, gems, vegetables, and fruits
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(Mexicos Top 10 Exports). The average applied tariff rate is 5%. Mexico participates in several

free-trade agreements, like NAFTA (North American Free Trade Agreement), in which Canada,

United States and Mexico participate in.

Leaders

The current president is Enrique Pea Nieto, who was elected in 2012. Pea Nieto is part

of the Institutional Revolutionary Party (PRI), which is Mexicos political party that had

dominated the country for 71 years without interruption (Encyclopedia Britanica). It was until

ex-president, Vicente Fox, who was part of the National Action Party (PAN) came along. Other

respected leaders in this country are Benito Juarez who fought against the French; Miguel

Hidalgo, a priest who launched the war for the Mexican Independance; Emiliano Zapata, who

fought for land and liberty during the Mexican Revolution; Pancho Villa, commander of the

north division who also fought in the Revolution; and Juan de Zumarraga, who fought against

corruption and for Indian rights (Mexican history).

Language

The official language in this country is Spanish, in fact, Mexico has the largest Spanish-

speaking population of any country in the world (2017 Economic Freedom). Mexico gained its

independence from Spain in 1821. Because of Spains control of Mexico, this is what led for

Spanish to be the dominant language. Although Spanish is the primary language, Mexico still has

almost 100 Native American languages that are still spoken.

Religion

Mexicos primary religion is Roman Catholic, with 89% of the population identified

themselves with this religion. Protestants and Evangelicals are the second largest religious

group, each accounting 5% of the population (Globalsecurity).

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Mexicos Culture

Mexicos culture is highly family oriented. For Mexicans, family is the center of social

structure. On average, the total number of household size in Mexico is about 4 persons (Geo-

Mexico), however, outside of the major cities, family sizes are still generally large in rural areas.

Extended family is very important since it provides a sense of stability. Most Mexicans believe

that it is their responsibility to help family members help with employment and finances.

Mexicans are very traditional when it comes to who is the head of the house. The father

owns the figure role of authority and is the decision maker. Machismo is a very common

behavior within males. Machismo means masculinity, in which Mexican men believe that

nothing must be allowed to tarnish their male image (Commisceo Global).

Business Dress

When doing business in Mexico, dress is not much different than what you would use for

a business meeting in United States. For males, common business attire in the Mexican business

culture would be dark suit and ties. Junior executives are allowed to dress a little more casual in

some industries. Normally, shirts will be well-pressed and shoes are polished to a high gloss

(Mexico: Business Dress).

Femininity is encouraged in womens dress in Mexico. Typical business dress for women

includes dresses, skirted suits, or skirts and blouses. Tennis shoes, shorts, jeans and guayaberas

are not acceptable for business meetings (Mexico: Business Dress).

Introduction, titles, schedules, timing,

If you're doing business in Mexico, you should know a few things about formal meetings

and introductions. Mexicans have a huge reliance on personal relationships rather than having

business contacts like we are used to having in the US (IB Times). According to Communicaid
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Mexican, securing friendships with Mexican business people is important because one can

directly do business with those who can introduce and vouch for oneself. Mexican business

persons like to avoid disagreements, and their way of saying no is often by saying maybe or

Ill get back to you.

When you are introducing yourself, you would want to start with a firm handshake

maintaining eye contact, but avoiding staring since it can be considered rude. Women initiate

handshakes, men should not try to initiate it with women (IB Times). Mexicans have a much

closer concept of personal space compared to Americans. Backing away from business people

can be considered unfriendly and quite insulting. When you introduce yourself to a Mexican, you

should address the other by their professional title followed by a surname. If the other person

does not know it, you would use curtesy titles like Seor (which means sir in English) (IB

Times). You do not want to address someone by their first name unless you have been invited by

the other person to do so. Business cards should be handed out upon introduction, and they

should be in Spanish. Business cards should have your professional and educational

qualifications (Commisceo Global).

Mexicans have a less sense of urgency when it comes to meeting on time, compared to

American businesspeople. Arriving late should not be considered a sign of disrespect, according

to the Australian Trade Commission (Austrade). Cancelling meetings or postponing them with

little short notice can be very common for Mexicans. Agendas are usually not common since

theres a high chance it will not be followed. When setting up a business meeting, it is important

to confirm the meeting several times, even on the same day. Generally, business meetings are not

hold during the weekends since that time is reserved to their families. Deadlines, like times, are

usually very flexible (IB Times).

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What to Expect in Meetings.

Initial meetings are always formal. Always make sure you have the documents available

in Spanish, and it is highly recommended to hire an interpreter if you do not speak Spanish.

Meetings should be started with small talk; you do not want to throw documents on the table

when negotiating since it is considered to be rude. (IB Times). You should expect to be asked

questions about your background, family and life interest. First impressions are very important,

as you will be judge by it and it will be really hard to change someones perception of you.

Current Situation: Mexicos Smoking Population

In Mexico, it is estimated that there are more than 14 million smokers in the country,

about 855,000 children and more than 8,989,000 adults who consumer tobacco each day (The

Tabacco Atlas). According to Forbes online article Lo Que Debes Saber Si Fumas (What You

Need to Know If You Smoke), smokers consume an average of 9 cigarettes a day, and about half

of those who smoke will die of tobacco-related illness.

Tobacco has caused more than 46,400 deaths a year in Mexico (The Tobacco Atlas).

According to WHO data for 2014, tobacco is linked to 6 million deaths a year. If this is not to be

controlled urgently in all countries, it is expected that by 2030 the amount will rise to 8 million.

Smoking not only causes health-related problems, but also brings forth financial issues within

those who consume tobacco products. Considering that a smoker in Mexico smokes 9 cigarettes

a day on average, and the cost of a pack of 20 cigarettes is 47 pesos ($2.53 USD), have you

thought how much a smoker spends a week? At this rate, one pack a week for a year is more than

2,444 pesos ($131.72 USD), approximately 25,000 pesos ($1,347.00 USD) in 10 years.

In 2015, the WHO Framework Convention on Tobacco Control (FCTC), in which

Mexico is part of, aims to change tobacco control in the world. Those countries who participate
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have increased the price of a pack of cigarettes by almost 150%. They have added graphics and

warning labels on them, and also laws have been enacted to prohibit smoking in enclosed spaces

and in public spaces. There are several ways to quit smoking. In Mexico, National Quitlines and

addiction clinics are available for those who wish to quit, although behavioral therapy and

medications are said to be the best treatment for this addiction (Forbes).

New Product: Medication that Assist in Quitting Smoking

A new product is in the market that has been tested and approved by the FDA (U.S. Food

and Drug Administration) is in high demand. This over-the-counter drug has successfully helped

thousands of American smokers slowly quit their addiction, and it is highly recommended by

doctors. This drug is currently available in the United States; however, because of its success in

assist in quitting smoking, it can soon be available in Mexico. Due to Mexicos attempt in

helping it population to quit smoking, this new product can have a huge impact in Mexicos

economy, lifestyle, and reduce the number of tobacco-related deaths.

There are already a few prescription drugs available to help assist in quitting smoking

like Varenicline (Chantix), Bupropion (Zyban), Nortriptyline, and Clonidine (American Cancer

Society). Because these drugs are only available with a prescription and most insurance

companies do not cover that, they are priced about $180 dollars for 53 tablets (a month supply),

which is about 3,339.45 Mexican pesos. Only 55.6 million Mexicans are covered by their

national healthcare plan, Seguro Popular, a public health insurance that covers a wide range of

services without co-pays (The World Bank). By introducing a drug that is available over the

counter, it would be available to more people who wish to quit.

Mexican Pharmaceutical Market.

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Introducing a drug to assist quitting smoking in Mexico will be viable. Mexicos

pharmaceutical market is currently ranked the 11th largest in 2008, and is the highest in Latin

America. Due to the income level of Mexico is lower than the United States; the prices of

medical drugs are about 5 times the level of income adjusted prices in the U.S. (Pharmexcil).

When exporting a medical drug to Mexico, the authorization of importing drugs is

obligatory per the Federal National Commission for Protection against Health Risks

(COFEPRIS). Imported products must be registered with Secretariat of health before distributing

in the country (Pharmexcil).

The company that is exporting pharmaceutical products needs to register and import

those products through a local manufacturer holding a sanitary license. To obtain registration of

medicines manufactured in another country (in this case the United States), you will need the

following documents: free sales certificate issues by the sanitary authorities of the country; a

permit to manufacture medicines; and the good manufacturing practices certificate. Mexico

imposes higher tariff on finished products compared to raw material, and the time for approval;

is about six to twelve months (Pharmexcil).

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References

The World Factbook: MEXICO. (2017, January 12). Retrieved April 13, 2017, from

https://www.cia.gov/library/publications/the-world-factbook/geos/mx.html

World's Largest Cities. (2016, November 14). Retrieved April 13, 2017, from

http://www.worldatlas.com/citypops.htm http://www.worldatlas.com/citypops.htm

Home. (n.d.). Retrieved April 13, 2017, from http://www.commisceo-

global.com/country-guides/mexico-guide

Pike, J. (n.d.). Military. Retrieved April 13, 2017, from

http://www.globalsecurity.org/military/world/mexico/religion.htm

The average size of households in Mexico in 2010. (2010, December 12). Retrieved

April 13, 2017, from http://geo-mexico.com/?p=3162

S. (n.d.). Mexico: Business Dress. Retrieved April 13, 2017, from

http://www.executiveplanet.com/mexico-2/mexico_business_dress-2/

Li, H. (2013, May 20). Doing Business in Mexico: Culture Differences to Watch for.

Retrieved April 13, 2017, from http://www.ibtimes.com/doing-business-mexico-culture-

differences-watch-413594

Mexico's Top 10 Exports. (2017, March 16). Retrieved April 13, 2017, from

http://www.worldstopexports.com/mexicos-top-exports/

Martin, E. (2016, April 27). Mexico Unemployment Rate Falls to Lowest in Almost

Eight Years. Retrieved April 13, 2017, from https://www.bloomberg.com/news/articles/2016-04-

27/mexico-unemployment-rate-falls-to-lowest-in-almost-eight-years/
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Mexico. (n.d.). Retrieved April 13, 2017, from http://www.tobaccoatlas.org/country-

data/mexico/

Del Mar, M. A. (2015, February 27). Lo que debes saber si vas a fumar. Retrieved

April 13, 2017, from https://www.forbes.com.mx/lo-que-debes-saber-si-vas-a-

fumar/#gs.Ddi3DVI

The North American Free Trade Agreement (NAFTA). (n.d.). Retrieved April 13,

2017, from https://www.inc.com/encyclopedia/north-american-free-trade-agreement-nafta.html

pharmexcil.org/data/country_files/Mexico%20_country_report_april2010.pdf