INTERNATIONAL MARKETING MANAGEMENT MEXICO CULTURAL & DYNAMIC ENVIRONMENT SOURCE OF DATA LINK IS INCLUDED

1. MEXICO
NORTH AMERICA
INTERNATIONAL MARKETING MANAGEMENT

2. CONTENT
1. CULTURAL ENVIRONMENT
 Country History
 Population, Geography, Nature, Climate and Topography
 Behavior and attitude of people
 Markets, trade and environmental issues
 Economic growth
 Resources
 Social responsibility and Environmental Management
 Communication
2. DYNAMIC ENVIRONMENT
 Balance Payment
 Trade Barrier/Restriction
 Position in IMF and WB
2

3. CULTURAL
ENVIRONMENT
UNITED MEXICAN STATES

4. HISTORY
4
Hernán Cortés led a new expedition to
Mexico landing ashore at present day
Veracruz on 22 April 1519
After gaining independence from Spain in
1821, Mexico officially became the
“United Mexican States.” The American
independence movement had
inspired Mexican leaders of that era and
since Mexico, in fact, also was a territory
composed of states, the name stuck and became
official in 1824

5. 5
49%
51%
MALE
FEMALE
Map of Mexico
Monterrey
Mexico City
Guadalajara
Mérida
128.9
MILLION

6. 6
•Official Language: Spanish
•Religion: Roman Catholic (89%)
•Currency: Mexican Pesos
•Form of Government: Federal Republic
•Climate: Varies from tropical to desert
•Topography : rugged mountains,
rumbling volcanoes, sprawling canyons,
and dry deserts to lush jungles, tropical
forests, rushing rivers and deep cenotes,
Fast Facts:
Mexico

7. 7
About People
 Family Oriented
 Loves Music and
Entertainment
Mariachis are commonly one form of
entertainment at baptisms, weddings,
holidays, and funerals. Mariachi music has
been incorporated into the Roman Catholic
Church as the music to accompany the
ceremony.
 Arriving Late
Constant lateness, as turning up 30 minutes
late is pretty normal.

8. 8
MARKETS & TRADE
NORTH AMERICA FREE TRADE
AGREEMENT
( NAFTA ) was implemented to promote
trade between the U.S., Canada, and
Mexico. The agreement, which eliminated
most tariffs on trade between the three
countries, went into effect on Jan. 1, 1994

9. 9
Mexico's Top Import
Mexico's Top Export
SOURCE: 2017 DATA
https://www.britannica.com/place/
Mexico/Trade

10. 10
MARKETS & TRADE
Mexico's petroleum is exported to the
United States, which relies heavily
on Mexico as one of its principal sources
of oil. Mexico's major imports include
machinery and transport equipment,
chemicals, and consumer goods.
Mexico's Top Import..
•Refined Petroleum – $7.6 billion.
•Corn – $3.1 billion.
•Raw aluminum – $2.28 billion.
•Soybeans – $1.94 billion.
Mexico's Top Export
•Machinery (including computers and
hardware) – $386.4 billion.
•Electrical machinery – $367.1 billion.
•Vehicles and automobiles – $306.7
billion.
•Minerals, fuels, and oil – $241.4
billion.
•Pharmaceuticals – $116.3 billion.
•Medical equipment and supplies –
$93.4 billion.

11. 11
RESOURCES
 Petroleum
 Gold
 Copper
 Silver
 Lead
 Vegetables, Fruits & nuts
 Beverages, spirits, vinegar

12. 12
ENVIRONMENTAL
ISSUE
With NAFTA, United States move their
factories to Mexico and ship the goods to
the USA with no tariffs. Building factories
and business creates pollution and
environmental degradation.

13. 13
ECONOMIC GROWTH
In the period between 2010 and
2018, the Mexican economy grew at
an average of 2.8%, however, due to
the fall in oil prices in 2019 and the
global economic crisis caused by
COVID-19 in 2020, the economy has
been affected in recent years It is
foreseen that it will grow during 2021.
Mexico is among the world's 15 largest
economies in the world and the
second largest economy in Latin
America.
https://www.statista.com/statistics/263608/gross-
domestic-product-gdp-growth-rate-in-mexico/

14. 14
COMMUNICATION
Reforming telecommunications in Mexico
RED COMPARTIDA – Public Private Partnership
OBJECTIVE:
1. MORE COMPETITION
2. REACH & EXPAND THE COVERAGE
3. ELEVATE THE PERFORMANCE
4. COMPETITIVE PRICE
RED COMPARTIDA – Wholesale shared
service (Telecommunication and Broadbands)
- With 13+ contracts signed for fixed and
mobile service

15. DYNAMIC
ENVIRONMENT
UNITED MEXICAN STATES

16. 16
BALANCE PAYMENT
CURRENT ACCOUNT:2020
SOURCE: https://tradingeconomics.com/mexico/current-account
 Mexico’s current account surplus widened sharply to USD 17.4
billion in the fourth quarter of 2020 from USD 3.2 billion in the
same period of the previous year. It was the second-largest
current account surplus ever recorded,
 as the goods surplus rose markedly to USD 15.5 billion from
3.2 billion a year earlier..
 Meantime, the services deficit went up slightly to USD 1.8
billion from USD 1.7 billion,

17. 17
BALANCE PAYMENT
JAN 2021 VS DEC 2021
SOURCE:
https://tradingeconomics.com/mexico/imports

18. FEBRUARY 27, 2021 18
TRADE BARRIER
TARIFF
•NAFTA
•Mexico-Chile
•Mexico-European Union
•Mexico-European Free Trade Association
•Mexico-Uruguay
•Mexico-Japan
•Mexico-Colombia
•Mexico-Israel
•Mexico-Peru
•Mexico-Central America
•Mexico-Panama
•Transpacific Partnership
Under a free trade policy, goods and services can be
bought and sold across international borders with little
or no government tariffs, quotas, subsidies, or
prohibitions to inhibit their exchange.
SOURCE
https://www.everycrsreport.com/reports
/R40784.html#_Toc480902286

19. 19
TRADE BARRIER
NON TARIFFS
All imported merchandise should meet minimum sanitary and safety standards and
many products must also comply with the Mexican Standards of Quality, referred to as
Mexican Official Norms (NOM).
Regulations stipulate that the minimum required information to be included on
labels
•description of the goods
•importer’s name and address
•warnings or precautionary information in the case of hazardous products
•instructions for use and storage
•expiration date
SOURCE
https://www.everycrsreport.com/reports
/R40784.html#_Toc480902286

20. IMF
INTERNATIONAL MONETARY FUND
Mexico became a member of the
International Monetary Fund on
December 31, 1945, four days after
official establishment of the IMF
Since 1945, it has reached 8.912 billion
special drawing rights (SDRs), which
1.87% of the total amount of SDRs for
the IMF.

21. 21
WORLD BANK
https://www.worldbank.org/en/country/me
xico/overview
https://www.reuters.com/article/us-mexico-
world-bank-idUSKBN23E0UB
Mexico has taken out a
$1 billion loan (2020) from
the World Bank as the effects of the
coronavirus begin to squeeze the
economy

22. END PRESENTATION
NELSON TUMBAGA
202020292