IBS 220: Survey of Mexico Business Environment Dr. James Rassi Paradise Valley Community College Phoenix, Arizona

COURSE DESCRIPTION Survey of Mexico Business Environment encompasses Mexico's history, culture, economic and political systems, geography, foreign investment and trade opportunities, demographics, export/irnport strategies, legal environment and current issue concerning NAFTA. COURSE NEED This course is needed in order to provide students an opportunity to study Mexico from the business perspective- This course would be a transfer elective for the International Business Program with A.'S-U. - West COMPETENCIES (1) Describe the Mexico Market including geography, climate population, government, political situation, education, language, religion, agriculature, aquaculture, energy, transportation, and communications (2) Analyze the influences of the Mexican customs--office hierarchies, business hours, socializing, business dress, negotiations -- in understanding the business climate (3) Explain the economy as it pertains to foreign investment, foreign exchange, real estate investment, and direct acquisition in Mexico (4) Explore modern developments the labor work force, federal labor law, unions, minimum wage, employee training, work safety, fringe benefits, housing, and insurance (5) Describe and analyze the intellectual property protection concerning patents, trademarks, trade secrets, transfers of technology, licensing, copyrights and enforcement under NAFTA. (6) Identify and explain the finance and tax structure of Mexico encompassing the banking system, stock market, money market, capital market, income taxes, gross assets tax, payroll tax, value-added tax, and real estate transfer tax. (7) Describe the export consulting services to Mexico and the economic sectors with strong growth for U-S. exporters (8) Explain the business environment involving retail sales, Maquiladoras, franchising, selling to the Mexican public sector, and government influence (9) Define the sources of financing an export transaction to Mexico as well as the services which are available in Mexico and the United States (10) Relate the U.S. government export regulations and Mexico's importing regulations including shipping requirements (11) Explain the North American Free Trade Agreement and its influence on the border infrastructure (12) Describe the influence of culture on the business context of Mexico involving holidays, business etiquette, punctuality, meetings, and common phrases COURSE REQUIREMENTS A total of 550 points are available to all students in the course-

Examination 1	100 points
Examination 2	100 points
Examination 3	100 points
Management Interview Report	50 points
Mexico Business Environment Reports (2)	100 points
Mexico Country Profile Report	50 points
Class Participation and Attendance	50 points

LETTER GRADE BREAKDOWN
	490 - 550 = A 430 - 489 = B 370 - 429 = C 310 - 369 = D Below 309 = F
REQUIRED TEXTBOOK James L Nolan, Mexico Business, World Trade Press, 2nd Edition, 1996- ISBN 0-9631864-0-X BIBLIOGRAPHY A General Information Resource Guide (bibliography) is attached with references of books, periodicals, directories/ software, and telephone/fax, COURSE OUTLINE Overview of Mexico
	Geography and Climate Population Government P Political Situation Education Language Religion Holidays Agriculture Aquaculture Forestry Energy Minerals Principal Industrial Centers Infrastructure/Transportation Communications International Affiliations
Mexican Business Customs
	Business Hierarchies Titles and Names Business Hours Socializing Business Dress Office Setup Initial Contact with Mexican Company First Appointment Negotiations
Economy and Foreign Investment
	Stabilization Privatization Mexico’s Exports Foreign Investment Classifications Direct Acquisition Expansion of Existing Foreign Investments Foreign Investment in Restricted Mexican Companies Foreign Investment in Real Estate Foreign Exchange
Labor Work Force
	Composition of the Work Force Federal Labor Law Minimum Wage Unions Employee Training Work Time and Vocations Work Safety Employment Termination Fringe Benefits Pensions Housing Insurance
Intellectual Property Protection
	Patents and Trademarks Trade Secrets Transfers and Technology and Licensing Copyright Protection Enforcement of Intellectual Property Rights Under NAFTA
Finance and Taxes
	Banking System - Stock Market Money Markets Capital Markets Income Taxes Gross Assets Tax Payroll Tax Value-Added Tax Real Estate Transfer Tax
Export Consulting Services
	U.S. Government Assistance Mexican Government Resources Chambers of Commerce and Associations Development and Commercial Banks Top Ten Sectors for U.S. Exporters
Business Environment
	Retail Sales Maquiladoras Franchising Public Sector Purchasing Government Influence
Financing an Export Transaction
	U.S. Commercial Banks U.S Federal Government Financial Assistance U.S. State Government Financial Assistance Mexican Commercial Banks Mexican Government - Financial - Assistance Bonds Leasing Credit Checks and Collection Problems
U-S- Government Export Regulations
	U-S- Department of Commerce Controls U-S- Department of State Controls Food and Drug Administration Controls Environment Protection Agency Controls
Mexico's Importing Regulations
	Product Inspection Import Licensing and Permits Certificates of Quality Tariffs and Other Import Changes Mexican Customs Procedures
North American Free Trade Agreement (NAFTA)
	Tariffs Rules of Origin Regional Value Job Market Environment Dispute Resolution Negotiations Process Progress Under NAFTA Future of NAFTA
Influence of Culture on Business Context
	Holidays Business Etiquette Punctuality Meetings Common Phrases Communication Style Leadership/Status Organization Structure

---

General Information Resource Guide Books
Castafieda, Jorge G.; Pastor, Robert A. Limits to Friendship: A study of Mexican-U.S. relations.
	New York: Alfred Knopf, 1988.
Condon, John. C. Good Neighbors.. Communicating with the Mexicans. Yarmouth, Maine:
	Intercultural Press, 1985
Gandy, Dr. Ross. Twenty Keys to Mexicon: (Door to Latin America). 11000 Mexico, D.F.: The
	Center for Bilingual and Multicultural Studies, cuermavaca, 1990. Mail: Apartado Postal 555, 06000 Mexico, D.F Phone: 202-4600
Kandell, Jonathan. La Capital: The Biography of Mexico City. New York: Random House, 1988.
Kras, Eva S. Management in Two Cultures: Bridging the Gap Between U.S. and Mexican
	Managers. Yarmouth, Maine: Intercultural Press, 1989
Kras, EvaS. Modernizing Mexican Management Style. Manzella, John L . Opportunity in Mexico: A Small Business Guide. Buffalo, New York: Free
	Trade Consultants, 1992.
Newman, Gray. Business International 's Guide to Doing Business in Mexico. New York: McGraw
	Hill Inc., 1993.
Oster, Patrick. The Mexicans: A Personal Portrait of a People. New York: William Morrow and
	Co., 1984.
Paz, Octavigo. The Labyrinth of Solitude: Mexican personality and culture. New York: Grove
	Press, 1985.
Riding, Alan. Distant Neighbors: A portrait of the Mexicans. New York: Random House, 1984. Ruiz, Raman E. Triumphs and Tragedy: A history of the Mexican people. New York: VW Norton
	and Co.
The Inter-Hemispheric Resource Center. Mexico: A Country Guide. Box 4506, Albuquerque,
	New Mexico 87196 (505) 842-8288

---

Periodicals
Business and Investment Guide: North America. Thompson Publishing's monthly bulletins on
	NAFTA issues. (800) 925-1878
Business Latin America. Weekly newsletter published by the Economist for managers of Latin
	American operations. (800) 938-4685
Business Mexico. Monthly magazine published by the American Chamber of Commerce in
	Mexico. (011) [521 (5) 724-3800
El Financiero. Weekly English-language edition of Mexico's leading business newspaper. (213)
	747-7547.
Global Production. Bi-monthly magazine focusing on manufacturing in Latin America. (303)
	939-8440.
NAFTA Watch. Twice-monthly newsletter on NAFTA issues. (800) 835-5224 Twin Plant News. Monthly magazine focusing on manufacturing in Mexico. (915) 532-1567 U.S. - Latin Trade. Monthly magazine with strong coverage of Mexican business. (305) 358-8373

---

Directories & Software
Access Mexico. 650-page handbook and directory. (703) 525-3282 Origin. Software program for determining preferential duty status for goods under NAFTA.
	(800) 387-7582 x3500
Trade Directory of Mexico. Printed or computer listings for more than 4,350 Mexican companies.
	(214)871-3184
US-Mexico Trade Pages. 330 - page directory of contacts that assist companies doing business in
	Mexico. (800) 366-5968
WorldTariff. Guidebook outlining Mexican import duties and taxes for more than 5,000 items.
	Available in loose-leaf or software edition. (415) 391-7501

---

Telephone and Fax Resources
Export Hotline. Free fax service offering information on business issues and more than 50
	different industries in Mexico. (800) USA-XPORT
Flash Facts. U.S. Commerce Department's automated fax information service. (202) 482-4464,
	ext. 0101
Mexican Investment Board's FaxLine. Offers information on business issues and specific
	industries in Mexico. (602) 930-4802