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Mexico Summer Study Program


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  • 1. 2010 Summer Study Program to MEXICO
  • 2. Outline
    The Exchange Program
    Mexico: Introduction and History
    Society and Culture
    Motivation and Business Management
    Business in Mexico:
    The Role of NAFTA
    Human Resource
    Business Culture
    The Mexican Economy
    Evaluation and Summary
    Images from Mexico
  • 3. Motivation
    Society and Culture
  • 4. The Exchange Program
    2006:  Exchange program with Mexico is a possibility, visit Cuernavaca to evaluate possibilities.  Need program where student credit hours are exchanged.
    2008:  Final agreement is signed in Spring, one student applies but changes mind.  Includes exchange of instructors.
  • 5. The Exchange Program
    2009 Spring: Lack of advertising and swine flu keeps program from taking off.2009 Fall:  Jeff Bates begins promotion campaign.
    2010:  First group of 8 students and one professor is sent to ITESM.  One student stays behind.  Tec students and professor show interest to attend AUM.  Tec would like to have same classes taught at AUM for Tec exchange students
  • 6. Motivation
    Mexico: Introduction and History
  • 7. Mexico: Introduction and History
    Quick Facts:
    3 times the size of Texas
    112 million people
    GDP $ 1.48 trillion
    Trading partner of the U.S.
    Mexico accounts for about 10 percent of U.S. imports and exports
  • 8. Mexico: Introduction and History
    Mexico was home to advanced Indian cultures
    Conquest by the Spanish in the 16th century
    In 1810 Mexico proclaimed independence
    In 1910 the Mexican revolution took place
    Strong government since 1929 (far from democracy)
    PRI in charge until 2000
    PAN in charge since 2000
    Little improvement in the political system
    Each presidential term brings uncertainty and change
    Periodic crisis connected with presidential terms
  • 9. Motivation
    Society and Culture
  • 10. Society and Culture
  • 11. Motivation
    Motivation and Business Management
  • 12. Motivation and Business Management
    Relationships and bonds in Mexican Business
    Loyalty in Mexican Business
  • 13. Taceria
    The store owner has 12 Taceriain Mexico
    Opening a profitable Taceriais a simple profitable endeavor
    The store owner is also the store manager and accountant for all 12 restaurants
  • 14. Taceria
    Hierarchy within the Taceria
  • 15. Taceria
    Loyalty vs. Education
    Work Ethic vs. Education
    Promotion from within the Taceria
  • 16. Burlington Textile Factory
    Produces yarn which is used in the production of blue jeans
    Mexican Business differs from American Business
  • 17. Burlington Textile Factory
    There are 5 different levels at the plant ranging from level 3 to level 8
    Promotion from within the company
    If education is needed it is provided by the company
    Equal opportunity among all workers
  • 18. Burlington Textile Factory
    Gradually phased out
    Difficulty in recognizing a small amount of people in this factory setting
    Did not yield the expected results
  • 19. Burlington Textile Factory
    Former American General Manager enlisted the help of the current General Manager
    He realized Mexican business was not the same as American business
  • 20. Motivation
  • 21. Education
    92.8 % Literacyrate
    The average Mexicangoestoschoolfor 7 years
    #28 in qualityofeducation by OrganizationforEconomicCooperationandDevelopment (OECD)
    61 of 100 people can use a phone
    21 of 100 people can use theinternet
  • 22. Education Structure
  • 23. Preparatoria
    Between the ages of 15-18
    It is equivalent to high school and some college preparatory classes in America
    Predatory schools are connected to universities
  • 24. Popular 2nd Languages
  • 25. TopColleges
    Instituto Politecnico Nacional
    Best engineeringschool in Mexico
    Costslessthan $1 USD
  • 26. TopColleges
    Universidad Nacional Autónoma
    Largest campus in theAmericas in Population
    190th ranked in the World
    2nd best in Ibreo-America
  • 27. TopColleges
    LaSalle University
    Oneofthe best in architectureandmechanicalengineering
  • 28. Problems
    • Over 3.1 millionchildrenandaudolsecence do notattendschool
    • Underpaidteachers
    • 29. Insufficatematerials
    • 30. Courption
  • Public vs. Private
    Schoolis free
    More accesable
    Offer more classes
    More resources
    Teachers are paidhigher
  • 31. Business
    Low education = lesscompetition
    Businesses use lowtechmeans
    American businessessetupcheaper
  • 32. Motivation
    Business in Mexico - NAFTA
  • 33. The Role of NAFTA
    WHO: NAFTA (the North American Free Trade Agreement.) Canada, Mexico, and the U.S
    WHAT: NAFTA covers Canada, the U.S. and Mexico making it the world’s largest free trade area (in terms of GDP).
    WHEN: NAFTA was launched 15 years ago
  • 34. NAFTA’s Purpose:
    NAFTA was launched to..
    • Reduce trading costs
    • 35. Increase business investment
    • 36. Help North America be more competitive in the global marketplace.
  • Has NAFTA Fulfilled it’s Purpose?
    NAFTA has..
    • Eliminated trade barriers
    Increased investment opportunities, and established procedures for resolution of trade disputes.
    Increased the competitiveness of the three countries involved on the global marketplace.
  • 37. Motivation
    Business in Mexico - Marketing
  • 38. Marketing
    SMEs (Small/Medium Enterprises) make up 52% of GDP
    3,105,157 SME
    No advertising/promotions
    Political Posters
    Advertising and Promotions come from the huge Multinational firms
    Coca Cola, Volkswagen, and Proctor & Gamble
  • 39. Marketing
    • Advertising
  • Marketing
    Most promotions, advertising, commercials centered on World cup, even the previews during the movies
  • 40. Motivation
    Business in Mexico - HR
  • 41. Human Resource
    Geert Hofstede Cultural Dimensions
  • 42. Human Resource
    Parkdale Mills - Burlington
  • 43. Human Resource
    Success in managing people across the Mexican border is a matter of being able to translate an understanding of relevant cultural differences into action. The job of the human resource manager is not only to understand these differences, but to adjust the relationship between the organization and its workers to be in line with the cultural values of Mexico.
  • 44. Human Resource
    The Mexican Federal Labor Law governs all labor matters, and the state labor boards, made up of representatives from the government, unions, and management, oversee the enforcement of the law
    Workers may be dismissed only for causes specifically set out in the Mexican Federal Labor Law.
  • 45. Motivation
    Business in Mexico – Business Culture
  • 46. Business Culture
    Mexicans are polychromic, family oriented, “old fashioned” and more physical in their interactions than people in the U.S.
    Relationship oriented and “laid back” culture
    Lack of education in the workforce and changing role of women
    Mexican business
    culture can be very
  • 47. Motivation
    The Mexican Economy
  • 48. The Mexican Economy
    GDP per capita $13,500 (PPP)
    GDP decreased by 6.5 percent in 2009
    Big differences between rich and poor
    GDP per capita in D.F. is about $ 24,000 vs. 3,000 in Chiapas
    It is almost impossible for the poor to raise their living standards
  • 49. The Mexican Economy
    Political system does not allow progressive change
    Limited opportunities for entrepreneurs
    Inaccessible capital, high interest rates (20 percent and more)
    No government support for starting businesses
    Issues with organized crime detrimental for investors
  • 50. The Mexican Economy
    Mexico offers a very cheap labor force: minimum wage is about $5 a day
  • 51. The Mexican Economy
    Despite incentives for international companies (maquiladoras) Mexico is becoming a less attractive destination for international investors lagging behind countries like Brazil, Argentina, or Chile
    The current socioeconomic situation in Mexico allows for the ruling elite to exploit the lower classes and sustain the system
  • 52. Motivation
    Evaluation and Summary
  • 53. Evaluation and Summary
    Mexico experienced a lot of growth in the past but did not reach its potential to an ineffective government
    Lack of progress and issues with crime cause Mexico to become less competitive in the international playing field
    Restricted access to capital, the limitations of Mexican culture, together with governmental restrictions do not allow the creation of a strong middle class that is crucial for a successful economy
    The government has to become more of a democracy and follow a policy that would eliminate the huge differences between rich and poor