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City Guide - Mexico City - Business | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Business Business Profile: From a colonial economy based largely on mining, especially silver, the Mexican economy has diversified to include strong agriculture, petroleum, and industry sectors. Membership in the North American Free Trade Agreement (NAFTA) in 1993 has led to hopes of continued economic growth. Mexico currently has one of the strongest economies in all of Latin America and its GDP is roughly equivalent to that of Australia, India and Russia. Mexico City is the most important economic centre in the country, home to the entire federal government and the focal point for business. The Mexico City region dominates the national economy, generating nearly half the country's GDP. Major city industries include construction; the manufacture of chemicals, plastics, cement, yarns and textiles and, more recently, tourism. Mexico's Bolsa de Valores (stock exchange) has its headquarters in Mexico City, as do most major finance, mortgage, insurance and banking companies. The main business areas are found around the Centro Histórico, around the Paseo de Reforma and Avenida Insurgentes and along the Periférico Sur. Most banking headquarters, financial companies and multinationals are found along the Paseo de Reforma between Avenida Insurgentes and the Bosque de Chapultepec. Mexico City has the highest cost of living in the country. The gap between rich and poor in the city is enormous - 20% of income earners account for 55% of the income and one-fifth of the city's population are thought to be living in extreme poverty. The minimum daily wage is about US$3.50 for unskilled labour and US$10 for skilled. It is difficult to gauge levels of unemployment in the city due to the hidden workforce. The 'informal' sector - street hawkers, entertainers and market vendors, who pay no taxes - could account for as many as one third of all workers. Business Etiquette: Machismo is still at the heart of the Mexican ethos and Mexicans believe in the differences between the sexes rather than their equality. The Mexican business world is generally a male domain and, although women are making progress, the top jobs still tend to be held by men. Business attire is very formal - men wear suits and women's clothing should be well tailored and conservative in style. While many people speak some English, it is considered courteous for businesspeople to speak a few words of Spanish, and for detailed discussions an interpreter may be required. It is important to bear in mind that in Mexico 'yes' does not always mean yes, as Mexican social etiquette makes it difficult to say 'no'. In Mexico City, a lot of business is conducted over a meal, although it is more common for negotiations to take place during a long business breakfast than a lunch. It is polite to accept a drink with your host and customary to shake hands with everyone upon arrival and departure. Business cards are used extensively and it is a good idea to have the cards printed in Spanish and English and to bring plenty of them. Mexicans attach great importance to professional titles - doctor, profesor, licenciado (lawyer or graduate) and ingeniero (engineer) - and it is courteous to address them by their title. Etiquette includes small talk before getting into business. The concept of time is fairly flexible, yet while guests to social events might arrive an hour late (to arrive on time is actually considered quite rude), punctuality is observed for most government appointments and functions. In Mexico City, businesses generally open between 0900 or 0930 and work continues until 1900, with a long lunch beginning at 1400 or later. In government offices, work begins at about l000, with a lunch break beginning at 1400 or 1500, with staff not returning until 1700 or 1800 to work into the evening until 2100. |
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