Doing Business in Latin America

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Doing Business in Latin America Mexico Doing Business in Latin America Petra Volk Anja Dezman Radu Ciocoiu Andrea Vornberger

Petra, Anja, Radu and Andrea Introduction General information about Mexico Economic Situation Political Situation Cultural Situation 10.11. 2006 Petra, Anja, Radu and Andrea

Petra, Anja, Radu and Andrea United Mexican States Capital Language Government President Vicente Fox Quesada Independence From Spain - Declared September 16, 1810 -Recognized September 27, 1821 10.11. 2006 Petra, Anja, Radu and Andrea

Petra, Anja, Radu and Andrea Area - Total 1,972,550 km² Population 2006 estimate -107,784,179 GDP (PPP) 2005 estimate - Total $1.073 trillion - Per capita $10,186 Currency Picture: Mexico City, Angel of Independence 10.11. 2006 Petra, Anja, Radu and Andrea

Economic Situation of Mexico 1 In 2005: Growth: ca. 3% GDP: 10,186 US Dollar Rate of inflation: 3.3 % Upper middle income country 10th biggest country of the world (in GDP) 12th biggest trading nation 13 free trade agreements with 43 countries (NAFTA, EU,...) Most business done in the center and capital (40 % of GDP) Industrial centers: Nuevo Leon (Monterrey) 7,2 %, Jalisco 6,4 % (Guadalajara) and Veracruz 4% of total GDP Productive power/ activity: - Services 69 %, industriel production 27 %, agricultutre 4% FDI: 17 mrd. US Dollar 10.11. 2006 Petra, Anja, Radu and Andrea

Economic Situation of Mexico 2 High inequality (rural population very poor: 10% less than 1$ per day, 26% less than 2 $ per day, indigenous 80%) Poorest 40% have 11% of GDP Low real wages Corruption Perceptions Index of Transparency International: Mexico on place 65 of 159 – high corruption High HDI (Human Development Index): 0.814 (from 0 to 1) Open system of competition, but: Few very big state-led companies: - Pemex (Petróleos Mexicanos) - CFE (Comisión Federal de Electricidad) MNE`s like Telmex, Cemex, Readymix, Banamex,... 10.11. 2006 Petra, Anja, Radu and Andrea

Political Environment in Mexico (1) Mexico is a federal presidential representative, democratic republic President is both head of state and head of government Current President : Felipe Calderon (won elections in July 2006) – serving a 6-year term Re-elections are banned by the Revolutionary Constitution of 1917 Mexican Executive Cabinet: 18 Secretaries of State + Head of federal legal office + Attorney General Political Constitution of Mexico (1917) 10.11. 2006 Petra, Anja, Radu and Andrea

Political Environment in Mexico (2) National Political Parties National Action Party (PAN) Institutional Revolutionary Party (PRI) Party of the Democratic Revolution (PRD) Labour Party (PT – 1990) Green Ecological Party of Mexico (PVEM) Convergence (1997) Social Democratic & Farmer Alternative (July 2005) New Alliance (July 2005) 10.11. 2006 Petra, Anja, Radu and Andrea

Petra, Anja, Radu and Andrea CULTURE Standard of living Leisure Broadcast media Picture: A woman dancing folklórico in the traditional dress of Jalisco 10.11. 2006 Petra, Anja, Radu and Andrea

Petra, Anja, Radu and Andrea Sport Religion Food Picture: Guadalajara Cathedral by night 10.11. 2006 Petra, Anja, Radu and Andrea

Petra, Anja, Radu and Andrea Thank you for your attention! Sources: www.wikipedia.org/wiki/Mexico/politics.html http://en.wikipedia.org/wiki/Mexico#Culture http://en.wikipedia.org/wiki/Mexico#Economy 10.11. 2006 Petra, Anja, Radu and Andrea