2. Introduction
International Trade
Steps to Conduct International Business
Quotas and Tariffs
Foreign Exchange Rate
Determination of Exchange Rates
Effects of International Trade on GDP
Strategies for Success
3. International Trade Between Mexico
and the US
• Within 10 years the amount of
trading has increased by 32.89
Billion.
• In 2012 the amount was at an all
time high
4. Steps to Conduct International
Business
From a Business Perspective
• Meticulously research the
economic conditions and
opportunities.
• Market Entry Strategy, this is the
analysis and evaluation of how
your business will look if you
expand.
Legality Perspective
• Hire a good lawyer who will
explain all your responsibilities
and liabilities moving forward.
• Register your business and name
your corporation.
5. Quotas and Tariffs
• Quotas and Tariffs do exist on
several items in Mexico.
• In order to advise you accurately
we will need a list of what you are
planning to export.
• Wide variety of quotas and tariffs
in Mexico on several items.
6. Foreign Exchange Rate
• 1.00 MXN = .0773 USD
• 1.00 USD = 12.935 MXN
*Exchange rates current as of
September 16, 2013 9:28PM UTC
7. How Are Exchange Rates Determined?
• Supply and Demand.
• If demand rises or supply falls the
rate goes up.
• If demand falls or supply rises the
rate goes down.
8. Effects of International Trade
on GDP
• NAFTA
• Outsourcing
• Illicit Trade
• Current Quagmire
• NAFTA
• Insourcing
• Illicit Trade
• Accountable GDP
9. Strategies For Success
• Hire a Bilingual Team Member
– With Professional
Communication Skills
– With Vast Understanding of
the Business Culture in
Mexico
10. Strategies For Success
• Have Written Plans
– Sales Goals
– Evaluate and Make
Recommendations
• Budget
• Secure Credit Line
11. Strategies For Success
• Designate Strategic Planning
Work Team
– Only 41% of Small Business
do this
– Taxes
– Labor Laws / Legalities
12. Conclusion
• International Trade
• Steps to take in order to conduct business
• Quotas and Tariffs
• Foreign Exchange Rate and How it is Determined
• Strategies for Success
• Questions?
13. References
Malkin, Elisabeth (2012, December 25). Mexico Finds Unlikely Allies in Trade Fight.
The New York Times. Retrieved from http://www.nytimes.com