Mexico versus China By: C. Rivera
 
Introduction <ul><li>Have you ever thought how a Mexican can compete with Chinese enterprises? </li></ul><ul><li>Of course...
Introduction <ul><li>What  attitudes and actions  must be taken by Mexican enterprises? </li></ul><ul><li>Is it possible f...
China’s economic development <ul><li>Trade opening </li></ul><ul><li>Worldwide export of really cheap products </li></ul><...
China’s competitive advantage <ul><li>What is it in China that no other country has? </li></ul><ul><ul><li>Huge Population...
Why is cheap labor so important? <ul><li>Cheap labor ( +huge population ) is very attractive to FDI. </li></ul><ul><li>BUT...
FDI in China <ul><li>FDI means:  </li></ul><ul><ul><ul><li>Many new jobs  </li></ul></ul></ul><ul><ul><ul><li>Money to imp...
Another China’s strategy <ul><li>To invest in education </li></ul>Hou Yifan, a fourteen year old girl, is a high school st...
China’s disadvantages <ul><li>On the other hand, China has a lot of disadvantages compared to Mexico, such as:  </li></ul>...
Competitive  opportunities for Mexican enterprises <ul><li>Mexican enterprises have to work on China’s disadvantages… so t...
Mexico’s   strengths and weaknesses <ul><li>* Proximity to US , short travel times, easy collaboration & service) </li></u...
Distance! <ul><li>What about american market? </li></ul><ul><li>If USA needs 100 jeans, which one would be faster: Mexico ...
Conclusion <ul><li>We have seen that China has developed its strategies based on a cheap labor, which is really attractive...
References <ul><li>Charles W.L. Hill.  International Business .  Competing in the Global Marketplace . Mac Graw-Hill, Sixt...
Upcoming SlideShare
Loading in …5
×

México vs China

1,535 views

Published on

China's international trade has brought an impact in the Mexico's economics development... it is time to look for a solution... these slides will provide to Mexican companies a new way to enter to markets that China cannot support.

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,535
On SlideShare
0
From Embeds
0
Number of Embeds
48
Actions
Shares
0
Downloads
27
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

México vs China

  1. 1. Mexico versus China By: C. Rivera
  2. 3. Introduction <ul><li>Have you ever thought how a Mexican can compete with Chinese enterprises? </li></ul><ul><li>Of course many will say that they are taking care of their pocket, which is respectable, but for how long? </li></ul><ul><li>Look at this: if we buy Chinese products, Mexican companies would break, employment would miss and you could lose your job!!! </li></ul><ul><li>Are you taking care of your pocket? </li></ul>
  3. 4. Introduction <ul><li>What attitudes and actions must be taken by Mexican enterprises? </li></ul><ul><li>Is it possible for Mexico to be as competitive as China? </li></ul><ul><li>I am an international business student and this problem is something that really worries me… that is why I am going to develop this topic and look for solutions for Mexican companies, for you and for me, because we are all MEXICO. </li></ul>
  4. 5. China’s economic development <ul><li>Trade opening </li></ul><ul><li>Worldwide export of really cheap products </li></ul><ul><li>How has it affected Mexican economic development? </li></ul>
  5. 6. China’s competitive advantage <ul><li>What is it in China that no other country has? </li></ul><ul><ul><li>Huge Population + Cheap Labor </li></ul></ul><ul><ul><li>Note : </li></ul></ul><ul><ul><li>The minimum wage in Mexico is $52 </li></ul></ul><ul><ul><li>The minimum wage in China is $37 </li></ul></ul>
  6. 7. Why is cheap labor so important? <ul><li>Cheap labor ( +huge population ) is very attractive to FDI. </li></ul><ul><li>BUT… what is FDI? </li></ul><ul><li>Foreign Direct Investment (FDI) occurs when a firm invests directly in a foreign country which provides advantages to produce (as China with cheap labor) and market a product . </li></ul>
  7. 8. FDI in China <ul><li>FDI means: </li></ul><ul><ul><ul><li>Many new jobs </li></ul></ul></ul><ul><ul><ul><li>Money to impulse the enterprises </li></ul></ul></ul><ul><ul><ul><li>Money to impulse the economic development </li></ul></ul></ul><ul><ul><ul><li>Transfer of know-how </li></ul></ul></ul><ul><ul><ul><li>An opportunity to have technology innovations </li></ul></ul></ul><ul><ul><ul><li>… </li></ul></ul></ul>
  8. 9. Another China’s strategy <ul><li>To invest in education </li></ul>Hou Yifan, a fourteen year old girl, is a high school student and spends up to 15 hours per day in her studies… In 2008, Hou Yifan won the third place in a world chess competition (which is endorsed by the Internation Chess Federation –FIDE-). IT IS AN EXAMPLE OF HOW CHINESE SCHOLARSHIPS ARE REALLY EXPLOITED.
  9. 10. China’s disadvantages <ul><li>On the other hand, China has a lot of disadvantages compared to Mexico, such as: </li></ul><ul><ul><ul><li>Poor quality of products </li></ul></ul></ul><ul><ul><ul><li>Cultural differences </li></ul></ul></ul><ul><ul><ul><li>Low skilled jobs </li></ul></ul></ul><ul><ul><ul><li>Distance </li></ul></ul></ul>
  10. 11. Competitive opportunities for Mexican enterprises <ul><li>Mexican enterprises have to work on China’s disadvantages… so the market that China is </li></ul><ul><li>losing because of them, Mexico will make their own market. </li></ul><ul><li>If China is so distant to America, has cultural differences and its products are in a very poor quality, Mexico should focus on creating high skilled jobs and develop products that satisfy the demanding markets . </li></ul>
  11. 12. Mexico’s strengths and weaknesses <ul><li>* Proximity to US , short travel times, easy collaboration & service) </li></ul><ul><li>* High market potential </li></ul><ul><li>*Prosoft: initiative to attract TI companies and improve TI infrastructure </li></ul><ul><li>Highly lacking in IT services </li></ul><ul><li>Old-fashion infrastructure </li></ul><ul><li>Limited talent pool for multinational positions </li></ul><ul><li>Political instability </li></ul><ul><li>Poor education system and low level of English </li></ul>
  12. 13. Distance! <ul><li>What about american market? </li></ul><ul><li>If USA needs 100 jeans, which one would be faster: Mexico or China? </li></ul>
  13. 14. Conclusion <ul><li>We have seen that China has developed its strategies based on a cheap labor, which is really attractive to FDI… however, it is still having some disadvantages… </li></ul><ul><li>“ Whom much covers little squeeze” </li></ul><ul><li>That’s where Mexican enterprises should focus its attention: create high skilled jobs = high quality products to satisfy the demanding markets and take advantage of its little distance to American market . </li></ul>
  14. 15. References <ul><li>Charles W.L. Hill. International Business . Competing in the Global Marketplace . Mac Graw-Hill, Sixth Edition </li></ul><ul><li>http://www.sat.gob.mx/sitio_internet/asistencia_contribuyente/informacion_frecuente/salarios_minimos/default.asp </li></ul><ul><li>http://www.spanish.xinhuanet.com/spanish/2006-10/28/content_336401.htm </li></ul><ul><li>-The International Business Dictionary and Reference, Lewis A. Presner, 1991 </li></ul><ul><li>-BusinessWeek, 1997 </li></ul><ul><li>-Texas Business Review, 1998 </li></ul><ul><li>-Manufacturing in Mexico, World Trade, Celestine Martha.,1999 </li></ul><ul><li>- Expansion Management, David Hendricks, 2004 </li></ul><ul><li>-Maquiladoras Rebound Special Report, Journal of Commerce, 2006 </li></ul><ul><li>-Developing Mexico’s Offshoring Opportunity, Diana Farrell, Antonio Puron, Ignacion Quesada, </li></ul><ul><li>The McKinsey Quarterly, 2007 </li></ul><ul><li>- Español 305 Informe de Sector. Industria Maquiladora en México, 2008 </li></ul>

×