1. Doing Business in Mexico 2011

4. Population: 112,322,727 million GDP per capita: $13,200 (est. 2009) Under 20: 44 % Literacy Rate: 91 % Urban: 77 % Wealthy/Upper Middle: 23% Middle Class: 37% Poor: 40% MEXICO – A SNAP SHOT

5. Why Mexico? Location / Access to Goods/Services/Market in U.S. Size, Diversify, and Vast Market Shared Culture: Western, Hispanic Manufacturing base in various sectors Stronger legal protections Politically stable Macroeconomic stability

6. Safety & Security in Mexico: A Changing Environment The changing security environment in Mexico presents challenges for U.S. companies Border cities are particularly vulnerable, such as Nuevo Laredo, Juarez, Reynosa, Matamoros, and Tijuana Businesses in Mexico are investing more in security for their personnel, facilities Visitors need to use common sense and be aware State Department Website for Travel Advisories: http://travel.state.gov/travel

7. Mexico is the United States 3 rd largest trading partner Mexico is the 2 nd destination of all U.S. exports Mexico accounts for roughly 1/8 of all U.S. exports 22 American states depend on Mexico as their first or second destination for exports One billion/day in two way trade Mexico – US Trade

8. Worlds largest free trade area: 442.4 million people; $15.4 trillion GDP No tariffs on U.S. exports to Mexico (except current dispute) It clarifies and simplifies rules of trade Institution of Dispute Resolution Process - Trucking is Major Issue U.S.-Mexico trade increased 317%: from $88 billion in 1993 to $367 billion in 2008 Trade has grown faster than the infrastructure that handles it Mutual Recognition Agreements for testing/certification in some sectors The impact of NAFTA

9. MEXICAN BUSINESS CULTURE Understanding cultural differences can make or break successful business deals. MARKET CHALLENGES

10. DRESS CODE Formal Men: suits & ties Women: 2 piece set / dress, skirts Except for use in a beach resort, shorts do not enter into the dress code anywhere

11. LEADING SECTORS/OPPORTUNITIES Agribusiness Sector Airport and Ground Support Equipment Automotive Parts and SuppliesEducation and Training ServicesEnergy SectorEnvironmental SectorFranchising SectorHotel and Restaurant EquipmentHousing and ConstructionInternet and IT ServicesPackaging EquipmentSecurity and Safety EquipmentTelecommunications Equipment Transportation and Infrastructure Equipment

12. Market Entry Strategies The best strategy to enter the Mexican market is to find a local representative or distributor. With this, buyers feel secure that initial training, spare parts and service will be provided. Due to regional concentration throughout Mexico, representation locally will yield better results than a single, nation-wide distributor. Price is important, but not necessarily the deciding factor. Be prepared to provide brochures, catalogs, and printed materials in Spanish. Keep websites international-user-friendly.

13. THANK YOU State of North Carolina Mexico Office LAURA CAMBEROS Trade Representative 52-55-1085-7208 laura@ncmexico.com