Assignment 1:

Global HR management
Mexico
200583241 Yuvrajsinh Bodana
200590820 Jay Nimeshbhai Brahmbhatt
200577418 Abhijith Lal Aryasseril Prasannakumar
200588051 Arya Acharya
200584013 Mayra Guadalupe Arjona Fausto.
200590188 Ahdil Arumugam Swamy

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 Introduction
 Mexico, the second-largest Latin American economy, offers businesses a
global reach with its strategic location, diverse workforce, and growing
consumer market.
 However, understanding the cultural, political, and economic factors is
crucial for success. This comprehensive guide provides key
considerations for companies.
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 Cultural Considerations
 Cultural Values
Mexico's culture emphasizes personal relationships, trust, and hierarchy, with many
organizations being family-owned or closely-knit, fostering successful business
interactions and family values in the workplace.
 Communication Protocol
Mexicans prefer indirect communication, using subtle body language and nuanced
language, preferring face-to-face interactions and a polite, formal tone in business
settings, making understanding these norms crucial for effective collaboration.
 Behavioural Expectations
Mexico's business culture emphasizes gift-giving, hospitality, and networking, while3
also requiring patience and flexibility to maintain strong relationships and smooth
operations.
 Risk Factors
 Crime and Safety
Mexico faces significant challenges from organized crime, drug trafficking, and violent
incidents, necessitating businesses to assess security environments and implement robust
safety protocols.
 Corruption
Corruption is a significant issue in Mexico, impacting government, law
enforcement, and businesses. Companies must implement strict anti-corruption
policies, conduct due diligence, and collaborate with authorities.
 Economic stability
Mexico's economy is influenced by global market conditions, commodity prices, 4
and currency exchange risks, necessitating businesses to adopt hedging,
diversification, and cost optimization strategies.
 Political Landscape
 Current political leaders
Since 2018, Mexican President Andrés Manuel López Obrador has prioritized
economic reforms, social welfare programs, and tackling inequality and corruption
within his government.
 Upcoming elections
Mexico's presidential, senate, and chamber of deputies elections in July 2024 will
be marked by a dynamic political landscape with multiple major parties competing
for power.
 Key political Factors
The political climate in Mexico is influenced by government policies, security 5

concerns, and US relations, making understanding these dynamics is crucial for

 Economic Landscape
 GDP Growth
Mexico's GDP, despite recent fluctuations, showed signs of recovery with a 3.2% growth rate in
2023, influenced by government policies and global economic trends.
 Inflation and monetary policy
Mexico's central bank is adjusting interest rates to stabilize inflation, requiring businesses to
monitor the economic climate and its impact on their operations .
 Foreign Direct Investment
Mexico's strategic location, affordable workforce, and extensive free trade agreements make it an
attractive destination for foreign direct investment in sectors like energy, electronics, aerospace,
and automotive.
 Trade and Partnerships 6

Mexico's robust trade relations with the US and Canada, facilitated by NAFTA agreements,
provide businesses with opportunities to utilize regional supply chains and market access.
 Family Consideration
 Education
Mexico provides various educational options, including public, private, and international schools,
which families should carefully assess to meet their children's educational needs.
 Healthcare
Mexico's healthcare quality varies, with urban areas offering better facilities. Employees and
families should consider private health insurance for access to high-quality medical care.
 Living Conditions
Mexico's lower cost of living varies significantly based on location, requiring careful evaluation of
safety, infrastructure, and access to amenities.
 Family Adjustment 7

Relocating to Mexico can present challenges like language barriers, cultural differences,
and lifestyle changes. Support and resources can ensure employee and family well-being.
 Cost of Living Comparison
 Housing
Mexico City: $350 - $650 for a one-bedroom apartment.
Toronto: $1,500 - $2,500 for a one-bedroom apartment.
 Utilities
Mexico City: $55 - $100 per month.
Toronto: $100 - $200 per month.
 Transportation
Mexico City: $15 - $20 for a monthly public transport pass.
Toronto: $128 - $180 for a monthly public transport pass.
 Healthcare
Mexico: More affordable, with many choosing low-cost private insurance
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Canada: Government-supported healthcare with minimal out-of-pocket expenses
 Opportunities and Challenges
 Opportunities
Mexico's growing economy, large consumer market, and strategic location make it an attractive
global destination for businesses, while its lower cost of living benefits employees and families.
 Challenges
Mexico's business landscape, characterized by cultural differences, security risks, corruption, and
economic instability, necessitates meticulous planning and a profound comprehension of the local
environment.
 Careful Consideration
A successful expansion to Mexico necessitates a thorough evaluation of potential opportunities and
challenges, along with a comprehensive strategy to tackle unique factors affecting business
operations and employee well-being. 9
 Conclusion
 Embrace the opportunity
Mexico's dynamic economy, diverse workforce, and strategic location present a compelling
opportunity for businesses looking to expand their global footprint. By understanding and
navigating the cultural, political, and economic factors, companies can establish a successful
presence in this vibrant market.
 Mitigate the risks
Mexico's businesses require strategic planning and risk management, including robust security
protocols, anti-corruption measures, and economic volatility strategies, to ensure sustainable and
successful operations.
 Prioritize employee well-being
Expanding to Mexico necessitates prioritizing employee and family well-being, offering quality 10
education, healthcare, and a comfortable living environment to attract and retain top talent.
 References
1. National Institute of Statistics and Geography (INEGI). (2023). Crime and Safety Data.
2. Transparency International. (2023). Corruption Perceptions Index.
3. Bank of Mexico. (2023). Inflation Report.
4. Mexlaw. (2021, January 27). Foreigners doing Business in Mexico - MEXLAW. MEXLAW.
5. https://mexlaw.com/foreigners-doing-business-in-mexico/
6. The Mexican education system: An overview. (2017, October 18). Wise. https://wise.com/us/blog/mexican-education-overview
7. International schools and the education system in Mexico | INTERNations. (2024, April 19). InterNations.
8. https://www.internations.org/mexico-expats/guide/education
9. World Bank Mexico GDP report
10. NovaAdmin. (2023, September 13). Mexican business culture and practices. NovaLink.

11. https://novalinkmx.com/2023/05/08/mexican-business-culture-and-practices/

12. Work culture in Mexico: A comprehensive overview. NNRoad. (2024, May 20). https://nnroad.com/blog/work-culture-in-mexico/

13. InterNations. https://www.internations.org/mexico-expats/guide/education

14. The political framework of Mexico - International Trade Portal. (n.d.). https://www.lloydsbanktrade.c /mexico/political-context

15. om/en/market-potential InterNations. https://www.internations.org/mexico-expats/guide/education

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