International Business: SPOTLIGHT ON MEXICO : When Doing Business There ...

Mexico is eager to expand international investment in its country but is still building a suitable infrastructure, including technological improvements. Business practices are heavily influenced by the country’s Latin culture.

DO

* Start making appointments for your time in Mexico several weeks in advance and request confirmations by fax the week before arriving.

* Be aware of the distances between appointment sites and allow enough time for transit.

* Eat a good breakfast. Lunch can be as late as 4 p.m. and is never served before 2 p.m., except in the north.

* Be ready to schedule meetings as late as 9 or 10 p.m. The business day is long in most parts of Mexico.

* Find a driver who knows the city you are visiting. Time saved in not getting lost or looking for parking is well worth the price. Besides, rental cars can easily cost as much as hiring a taxi for the day.

* Be prepared to offer financing. Interest rates are still high and capital scarce. The ability to provide financing can make or break a deal.

* Listen carefully. Because direct refusals are generally considered rude, people may be raising objections or even saying no in subtle ways.

* Hire your own Mexican lawyer to review any agreement to make sure it complies with the law, reflects standard business practices and is enforceable.

* Be flexible. Traffic, a call from a superior or any number of other problems can interrupt carefully planned schedules. Always have an alternative available.

DON’T

* Don’t expect instant results. The first few trips or appointments may be getting-acquainted sessions.

* Don’t rely on public telephones, which are scarce and almost never work. Make calls from your hotel before leaving in the morning. Most first-class hotels offer cellular phone rentals.

* Don’t assume that everyone is comfortable speaking English. Many Mexican executives and government officials are fluent in English, but it is best to arrange for an interpreter if they are not.

* Never be condescending. Mexicans who are still in business have guided their companies through an extremely difficult decade. They are astute and capable administrators.

* Don’t try to circumvent the law. Mexican rules on foreign investment have been liberalized considerably, but the restrictions that remain are taken seriously. Illegal deals leave the participants vulnerable in the case of a bureaucratic reshuffling or a partner’s change of heart.