UNIVERSITY OF ECONOMICS AND LAW
VIETNAM NATIONAL UNIVERSITY HO CHI MINH CITY
o0o

THE CROSS CUTURAL MANAGEMENT

GROUP MEMBERS:

Subject code: 202QT2902

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K194101489

Nguyễn Anh Tú

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Phạm Ngọc Yến Trang

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Bùi Thanh Uyên

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NAME OF THESIS:
“DIFFERENCES IN NATIONAL BUSINESS CULRURE OF MEXICO”

Lecture: MAS Ngô Thanh Trà

Ho Chi Minh 6 April 2021


TABLE OF CONTENTS
INTRODUCTION ......................................................................................................................... 1
CHAPTER 1: BRIEF INTRODUCTION OF MEXICO ........................................................... 1
1.1. Geography location ............................................................................................................. 1
1.2. Natural condition ................................................................................................................ 1
1.3. Demographic ....................................................................................................................... 3
1.3.1. Population ..................................................................................................................... 3
1.3.2. Ethnicity ........................................................................................................................ 3
1.3.3. Religion.......................................................................................................................... 3
1.3.4. Language ....................................................................................................................... 4
1.4. Social structure ................................................................................................................... 4
1.5. Political conditions .............................................................................................................. 5
1.6. Economic conditions ........................................................................................................... 5
1.7. Education ............................................................................................................................. 8
CHAPTER 2: DIFFERENCES IN MEXICO’S BUSINESS CULTURE ................................ 9
2.1 Business values ..................................................................................................................... 9
2.1.1. Management style ......................................................................................................... 9
2.1.2. Interpersonal Trust and Confidence ........................................................................ 10
2.1.3. Contracts and Relationships ..................................................................................... 10
2.1.4. Teamwork in Mexico ................................................................................................. 11
2.1.5. Attitudes toward time ................................................................................................ 11
2.2 Business norms ................................................................................................................... 12
2.2.1 Business meeting, greeting and titles ......................................................................... 12
2.2.2 Etiquette ....................................................................................................................... 13
2.2.3 Agreement and contract ............................................................................................. 14



2.2.4 Dress codes ................................................................................................................... 14
2.2.5 The use of body language ........................................................................................... 14
2.2.6 Business cards and gift giving .................................................................................... 15
2.3. Notes in business negotiation ........................................................................................... 15
2.3.1. Attitudes ...................................................................................................................... 15
2.3.2. Language ..................................................................................................................... 17
2.3.3. Information Sharing .................................................................................................. 17
2.3.4. Speed of negotiations.................................................................................................. 17
2.3.5. Negotiating .................................................................................................................. 18
2.3.6. Decision-making ......................................................................................................... 19
2.4. Organizational structure of the companies in Mexico .................................................. 20
2.5 Motivation........................................................................................................................... 20
2.6 Leadership .......................................................................................................................... 21
2.6.1 Purpose and Methods ................................................................................................. 21
2.6.2 Types of leadership models. ....................................................................................... 22
2.7 Other important notes about culture in Mexico business .............................................. 23
CONCLUSION ............................................................................................................................ 23
REFERENCES ............................................................................................................................ 24


LIST OF TABLES:
Figure

Content

Figure 1.1.

Topography of Mexico in 2018. Reproduced from “Topography of Mexico”.
Wikimedia Commons, 2018.


Figure 1.2

Religion in Mexico in 2020. Reproduced from “Religion in Mexico”.
Wikimedia Commons. 2020.

Figure 1.3.

Distribution of the gross domestic product (GDP) across economic sectors
from 2009 to 2019. Reproduced from “Distribution of the gross domestic
product (GDP) across economic sectors from 2009 to 2019”. Statista.com.
2020.

Figure 1.4.

GDP in Mexico from 1965 to 2020. Reproduced from “Mexico GDP - Gross
Domestic Product”. Countryeconomy.com. 2020.

Figure 1.5.

Annual GDP Mexico and GDP per capita Mexico from 2000 to 2020.
Reproduced from “Mexico GDP - Gross Domestic Product''.
Countryeconomy.com. 2020.

Figure 2.1

Analyzing factor' Hofstede (2016)


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INTRODUCTION
Globalization is one of the great conditions for us to integrate and develop our
career. Analyzing the multicultural environment is to improve our knowledge and understanding
about the culture and working environment we are approaching.
Each country has a different culture, which directly affects the business culture of that
country. Mexico is no exception, is a country with an extremely rich and unique culture.
To have a better understanding of this North American country, our team analyzed the
culture of Mexico to find cultural differences that directly and indirectly affect the business
process in this country. with a view through the theoretical prism of Geert Hofstede to analyze
and explain why there are different businesses. In addition, we apply the knowledge of the CrossCultural Management subject in this analysis to better understand the differences.
CHAPTER 1: BRIEF INTRODUCTION OF MEXICO
1.1. Geography location
Mexico is at the southern extremity of North America. It borders the United States,
Pacific Ocean, Guatemala, Belize, Caribbean Sea, and the Gulf of Mexico [1].
Mexico covers 1,972,550 square kilometers (2021) [2], “making it the world's 14thlargest country by area” (“Population and Housing Census 2020”, 2021) [3]. The country has a
total of 31 states and one federal district is the Mexican capital, one of the most densely
populated urban areas in the world [4].
Much of this country's territory is on the North American tectonic plate while partially
small in the Baja California peninsula and belongs to the Pacific Plate and the Cocos Plate.
Geophysically, most of Mexico's territory belongs to North America, while 12% of the territory's
Mexico belongs to the peninsula Tehuantepec which is located in Central America. In terms of
geopolitics, Mexico is considered a North American country along with the United States and
Canada [5].
1.2. Natural condition
Topographically, Mexico is mainly mountainous terrain. The country has three main
mountain ranges located along the coastline of Mexico. Lying between these mountains and the
coastline are these small and narrow plains. Mexico is located in an unstable area, near the
junction between the two plaques Cocos and North America, where earthquakes and volcanic
eruptions occur in overflow [6].



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Figure 1.1. Topography of Mexico in 2018. Reproduced from “Topography of Mexico”.
Wikimedia Commons, 2018.
Concerning the climate of Mexico, the Tropic of Capricorn divides Mexico's territory into
two distinct climatic zones: the temperate northern half of the tropical climate and the southern
half of which is highly dependent on elevation. Besides, Mexico is also a country with many
mountains. These make Mexico one of the countries with the most diverse climate systems in the
world [7].
About biodiversity, Mexico positions fourth on the planet in biodiversity (2017) [8]. With
more than 200,000 unique species, Mexico is home to 10–12% of the world's biodiversity (2007)
[9]. Mexico positions first in biodiversity in reptiles with 707 known species, second in warmblooded animals with 438 species, fourth in creatures of land and water with 290 species, and
fourth in greenery, with 26,000 unique species (2007) [10]. Mexico is additionally viewed as the
second country on the planet in biological systems and fourth in overall species (2007) [11].


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1.3. Demographic
1.3.1. Population
Mexico's populace is around 130,004,727 individuals (2021). Mexico’s population is
currently 1.65% of the world population. Mexico is ranked 10th (2021) in the world in the
ranking of the population of countries and territories [12].
1.3.2. Ethnicity
Mexico is a country with a wide range of identities, and its Constitution unmistakably
expresses that Mexico is a multi-ethnic country. Mexicans can be isolated into the accompanying
primary gatherings:
The Mestizo (a hybrid of whites and Indians) is the ethnic group with the highest
proportion in Mexico, estimated at 60-75% (2015).

Native Indians are assessed to make up somewhere in the range of 12 and 30 percent of
the populace. These were the main occupants of Mexico so their dialects are perceived by the
Mexican government as the public language and ensured.
Whites make up about 9% to 17% of the population. They are immigrants of European
descent. They have many different origins, mainly Spain, and then some other groups such as
France, Italy, Portugal, Basque, Germany, Ireland, Poland, Romania, and Russia. Some
Americans and Canadians also recently immigrated to Mexico.
Blacks make up an unimportant minority in Mexico, focused on the shorelines of
Veracruz, Tabasco, and Guerrero. Mexico likewise has a huge Asian people group from China,
Korea, the Philippines, Japan, Lebanon, Turkey, [13]
1.3.3. Religion
The 2020 registration by the Instituto Nacional de Estadística y Geografía (National
Institute of Statistics and Geography) gave Roman Catholicism as the principle religion, with
77.7% (97,864,218) of the populace, while 11.2% (14,095,307) have a place with
Protestant/Evangelical Christian sections—including Christians (6,778,435), Evangelicals
(2,387,133), Pentecostals (1,179,415), Jehovah's Witnesses (1,530,909), Seventh-day Adventists
(791,109), and individuals from the Church of Jesus Christ of Latter-day Saints (337,998)— ;
8.1% (9,488,671) announced having no religion; .4% (491,814) were unknown [14] [15].


4

Figure 1.2. Religion in Mexico in 2020. Reproduced from “Religion in Mexico”.
Wikimedia Commons. 2020.
1.3.4. Language
Mexico is the country with the biggest number of Spanish speakers on the planet, more
than twice as much Spanish as the starting point of the language. Hence, Mexico has a significant
job in spreading the impact of Spanish to the world, particularly in America [16].
Although Spanish is spoken by 97% of Mexico's populace, it isn't perceived as the
country's only authority language [17]. As indicated by the Constitution of Mexico, all native

dialects have a similar right as Spanish, paying little mind to the number of speakers. Inhabitants
are completely qualified to be approached to offer public types of assistance and materials in their
local language [18]. English is broadly utilized in the American people group in Mexico, northern
boundary urban communities, and major monetary and monetary focuses. Some different dialects
of European inception that are likewise generally utilized are Venetian (beginning from Italy),
Plautdietsch (southern Germany), German, French, and Dig.
1.4. Social structure
Mexico is a decentralized society. Mexican culture is emphatically isolated by income and
schooling level. Although the working class has attempted to grow in urban areas, the important
division is between the rich accomplished tip top and the metropolitan and provincial poor, who
establish by far most of the populace [19].
Mexican society is evaluated and stratified vertically. Mexico emphasizes hierarchical
relationships. People respect their rights and turn to those above them for guidance and decision-


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making. People of rank must be always respected. That is the source of decision-making and
problem-solving in Mexico, and each rank will be assigned to the individual - be it family,
friends, or business. It would be disrespectful to break the chain of the hierarchy.
1.5. Political conditions
The political issues of Mexico happen in a structure of a bureaucratic official delegate
majority rule republic whose administration depends on a legislative framework, whereby the
President of Mexico is both head of state and head of government, and of a multi-party
framework. The government addresses the United Mexican States and is isolated into three
branches: executive, legislative and judicial, as set up by the Political Constitution of the United
Mexican States, published in 1917.
The leader power is practiced by the presidential branch, which is going by the President,
informed by a bureau with respect to secretaries that are free of the governing body.
Administrative force is vested upon the Congress of the Union, a two-chamber lawmaking

body including the Senate of the Republic and the Chamber of Deputies.
The legal force is practiced by the legal executive, comprising the Supreme Court of
Justice of the Nation, the Council of the Federal Judiciary, and the university, unitary, and locale
councils.
“The politics of Mexico are dominated by four political parties: Institutional
Revolutionary Party (PRI), National Action Party (PAN), Democratic Revolution Party (PRD),
and the National Regeneration Movement (MORENA)” [20].
1.6. Economic conditions
Mexico is a developing country (IMF, 2019) [21]. The economy of Mexico is a
developing market economy. Currently (2021), Mexico is a member of trade organizations such
as APEC, NAFTA, OECD, and WTO [22]. Mexico’s currency is “Mexican peso” (MXN/Mex$)
and 1 USD = 19.9 MXN (Morningstar, 2021) [23]. According to Statista.com (a provider of
market and consumer data) (2020), Mexico tended to see its service as an industry-leading
economic sector within ten years.


6

Figure 1.3. Distribution of the gross domestic product (GDP) across economic sectors
from 2009 to 2019. Reproduced from “Distribution of the gross domestic product (GDP) across
economic sectors from 2009 to 2019”. Statista.com. 2020.
In 2019, agriculture accounted for about 3.5% of the economic sector and the percentage
for the industrial sector reached approximately 30.2%, while the services sector made up an
enormous proportion of 60.5%.
Moreover, Mexico is the 16th largest in the world in nominal terms and the 10th largest
by purchasing power parity, according to the International Monetary Fund (2020) [24].


7


Figure 1.4. GDP in Mexico from 1965 to 2020. Reproduced from “Mexico GDP - Gross
Domestic Product”. Countryeconomy.com. 2020.
About Mexico ‘s GDP (Gross domestic product), there is a larger variation between years.
Especially from the end of 2019 to the beginning of 2020, Mexico suffered from the COVID-19
pandemic leading to a severe effect on its economy.
According to the statistics of Countryeconomy.com, in 2020 the GDP figure was
$1,076,160 million. The total worth of GDP in Mexico dropped $192,710 million as of 2019
[25]. Besides, its GDP Growth heavily decreased to minus 8.2%, and its GDP per capita also
dropped down minus 16.0%

Figure 1.5. Annual GDP Mexico and GDP per capita Mexico from 2000 to 2020.
Reproduced from “Mexico GDP - Gross Domestic Product''. Countryeconomy.com. 2020.
OECDiLibrary (the online library of the Organisation for Economic Cooperation and
Development featuring its books, papers, and statistics and is the knowledge base of OECD's
analysis and data) said that the COVID-19 pandemic would drive the economy into an extreme
downturn in 2020, driven by the worldwide constriction, the fall in the travel industry, lower oil
costs, and the vital homegrown imprisonment estimates are taken. The gross domestic product
would fall by 8.6% this year (2020) if there is another flare-up later in the year (the two-fold hit
situation). On the off chance that further episodes stay away from (the single-hit situation), the
economy would shrink by 7.5%, with recuperation in the second 50% of the year driven by fares
and utilization. In the two situations, the degree of GDP would remain lower than toward the end-


8

2019, as it will take some effort for the travel industry and fare areas to get back to pre-pandemic
levels. Poor people and powerless, including casual specialists, will be especially hard hit by the
downturn [26].
In terms of commercial parts, Mexico mainly exported manufactured goods, electronics,
vehicles and auto parts, oil and oil products, silver, plastics, fruits, vegetables, coffee, cotton,

silver; while imported metalworking machines, steel mill products, agricultural machinery,
electrical equipment, automobile parts for assembly and repair, aircraft, aircraft parts, plastics,
natural gas, and oil products. As well, the United States, Canada, China, Spain, Brazil are the
main export partners; whereas the United States, China, Japan, Germany, South Korea are the
main import partners of Mexico (2019) [27]. In 2019, Mexico exported $491.6 billion and
imported $467.2 billion (2019) [28]
1.7. Education
In Mexico, fundamental instruction is typically isolated into three stages: basic education
(elementary school), upper - secondary education, higher education. Each level of education is
further subdivided as follows [29]:
●

Educación Basica (Basic Education)

1.

Educación Preescolar (early childhood education): Ages 3–6

2.

Educación Primaria (elementary education): Grades 1–6

3.

Educación Secundaria (lower-secondary education): Grades 7–9

●

Educación Média Superior (Upper Secondary Education): Typically grades 10–12


1.

Bachillerato General (general academic)

2.

Bachillerato Tecnológico (technological education)

3.

Profesional Técnico (vocational and technical education)

●

Educación Superior (Higher Education)

1.

Técnico Superior (post-secondary/associate/diploma)

2.

Licenciatura (undergraduate and first professional degrees)

3.

Postgrado (graduate/postgraduate education)


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CHAPTER 2: DIFFERENCES IN MEXICO’S BUSINESS CULTURE
2.1 Business values
Cultural values can affect decision making, management style, interpersonal trust,
teamwork, and the role of women in the workplace, among other issues.
2.1.1. Management style
As Gregory K. Stephens & Charles R. Interview in 1994 [30], they suggested that:
The Mexican managerial style has been characterized as autocratic and paternalistic.
Mexican subordinates are more deferential and less likely to challenge or oppose a supervisor’s
ideas or directives, especially across hierarchical levels. Many employees still hesitate to provide
decision-making input or assume decisionmaking responsibilities and risks.
A reluctance to challenge decisions also appears to stem, in part, from the greater respect
and sensitivity employees offer to other workers of all ranks, both within and across hierarchical
levels. Mexicans are far less tolerant of abrasiveness and insensitivity in managerial styles than
are Americans. This style is antithetical to gaining subordinates’ support and compliance.
To Mexicans the issue is honor, not equality. Rather than resent their “rank,” workers
expect respectful recognition of their roles within the hierarchy. Even the janitor expects
respect. To sum up, Mexicans accept the decentralization within the company because they see it
as respecting the rank they undertake.

Figure 2.1: Table of analyzing factor' Hofstede (2016)


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According to Hofstede (2016), the Power Distance point of Mexicans is high (81 points),
which means there is an existence of high Power Distance in Mexico. This clearly explains why
Mexicans behave as above.
2.1.2. Interpersonal Trust and Confidence
In everyday life or even in business, Mexicans are very promising. However, the ability to

perform as they say is not high. This is normal for them because they do not want to disappoint
the other party or business partner.
Mexico is similar to many Latin countries when Hofstede's Dimensions are compared and
analyzed. Mexico's highest Hofstede Dimension is Uncertainty Avoidance (82 points), indicating
the society’s low level of tolerance for uncertainty. As a result of this high Uncertainty
Avoidance characteristic, the society does not readily accept change and is very risk adverse.
Alternatively, in emotional cultures like Mexico, people often smile, talk loudly when excited,
and greet each other with enthusiasm (Trompenaars’ seven-dimension cultural model). People are
expected to open up emotionally to others; use emotional means to communicate to each other;
use body language effectively. These two dimensions also explain why Mexicans are very
promising.
2.1.3. Contracts and Relationships
Another Mexicans’ s Value that is influented by high Uncertainty Avoidance is that
Mexicans place a high value on relationships and mutual trust, the resulting difficulties might
well be insurmountable. This leads to foreign companies wanting to cooperate with Mexican
companies is quite difficult. Because Mexicans tend to do business or sign associate contracts
with relatives, friends, family, people they know. They only believe in brotherly relationships in
the family, relatives, close friends. Building new relationships requires referrals from people you
already know. This has resulted in you have to build a good relationship in order to do a good
business in Mexico.
In addition to explain why they behave like that, a collectivistic culture like Mexico in
which people value social networks and relationships and expect group members to support and
sustain one another. Mexicans also tend to be more loyal and will defend their dealings with an
insurance vendor on the basis of the relationship, not the cost.


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2.1.4. Teamwork in Mexico
A fascinating aspect of the Mexican culture is that it may promote a quick adaptation to

teamwork. Their team spirit is real; they will help people in trouble. If a supervisor is in trouble,
they will help him. They are high communicators in their group.
Mexican workers’ desire for affiliation may enhance the effectiveness of the
workteam concept. Some Mexican employees develop such strong allegiances to a company that
they view it almost as family.
This aspect can be explained by the collectivistic culture of Mexico (Hofstede's research).
Mexico has a low Individualism ranking (30 points). The score on this Dimension indicates the
society is Collectivist as compared to Individualist. This is manifest in a close long-term
commitment to the member 'group', be that a family, extended family, or extended relationships.
Loyalty in a collectivist culture is paramount, and over-rides most other societal rules and
regulations. The society fosters strong relationships where everyone takes responsibility for
fellow members of their group. But this contrasts with Trompenaars research which found
Mexico and the former communist countries of Czechoslovakia and the Soviet Union to be
individualistic. This shows the dynamic and complex nature of culture.
2.1.5. Attitudes toward time
Latin countries are well-known for polychronic in their approach to time. Mexico have
the ''manana'' attitude, which in Spanish means that they are often generous about time, not the
spirit of time is gold and silver like other cultures. [31]
But due to working heavily with the Western culture of punctuality and being high in UAI
which is a index of Hofstede (82 scores), this habit is now changing as well. They always want
their counterparts be punctual. Hofstede explained the difference by his research which shows
that Mexicans are high in their avoidance of risk. [32]
To sum up, Mexicans tend to have a looser sense of time compared to other countries in
North America. However, arriving on time for a meeting is still important. But you may be kept
waiting 30 minutes or more. This is due to the personal time management of Mexicans,
everybody will have their own attitude of being punctual or not, so this is considered a value in
Mexico.


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2.2 Business norms
2.2.1 Business meeting, greeting and titles
The culture of each country is different, leading each country to behave differently in
meetings. Mexico also has basic requirements in meetings. To be most effective when doing
business in Mexico, individuals should know the following rules of conduct.
Firstly, business meetings must be scheduled in advance. According to Hofstede’s
research, Mexico, with a score of 81 is considered to have a high uncertainty avoidance.
Therefore, Mexicans like structured organizational activities so that they can best prepare and
avoid the risk.
Secondly, it is courteous to have all Business Document in both English and Spanish.
Because Mexico is a country with the largest number of people speaking Spanish worldwide
(Statista, 2020) [33], residents mainly speak this language. Besides, people living in Mexico also
communicate in English. By preparing a Business Document in two kinds of languages shows
that partners are goodwill to do business.
Moreover, meetings ought to begin with small talk and shaking hands is at the beginning
and the end of the meeting. Trompenaar's statistics showed that there is a high emotional index of
Mexicans. This means they express openly, smile and talk loudly when being excited and enjoy
small talk. They tend to want a potentially animated and boisterous meeting and want to be
responded to warmly. About shaking hands, men should wait for women who intend to shake
hands first. if a woman does not intend to shake hands, it is best to bow slightly to greet [34].


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Figure 2.1. Trompenaar’s statistics show the Neutral and Emotional index of several
countries.
Although Mexicans like being friendly and openly expressing their feelings, their partners
should notice the following. They shouldn’t lose their temper or show impatience. When
communicating with Mexicans, they can talk from close range, about 2 feet or less. In case of

encroaching on the personal distance of Mexican, they should not step back because of doing this
means they upset with their Mexican partner.
Besides, Mexico is a moderately diffuse oriented culture (Trompenaar’s research).
Professional business type in Mexcico should be addressed by not only their first name but also
their maternal and paternal name (see formality). Most Mexicans have two surnames, one from
their father and the other from their mother. Use Mr/ Mrs./ Miss or Senor /Senora /Senorita with
them to call them, this surname is usually the first of the two surnames in the name. If a person
has a degree, such as a doctor or professor or a professional title such as Ingeniero, Licenciado or
Arquitecto, it is often used with them. If hearing someone address someone like Don or Dona,
this will show great respect. Before calling Mexicans by name it is better to let them suggest it.
Introduce or greet the top person first (Carlo Rossy, 2012) [32].
Last but not least, common topics of conversation that Mexicans enjoy are the culture,
history, arts and museums in their homeland. Avoid talking about war between Mexico and
America, poverty and earthquakes.
2.2.2 Etiquette
Etiquette when doing business with people who are from other culture is essential. With
Mexicans, their counterparts should keep their hands above the table. After finishing the meal,
they ought not to get up to leave (using the toilet for example) unless it is an emergency. It is
customary for the host to say “provecho” before starting a meal (provecho means “privilege” in
Spanish and is the equivalent of the French “bon apetit”) (Carlo Rossy, 2012) [32].
Furthermore, tacos, tortas, and tostadas are foods eaten by using their fingers. If their
partners use a knife and fork instead, it may be impractical and even look comical. At a meal,
family (asking about Mexican’s family is always warmly appreciated), Mexican culture,
museums, art and architecture, cuisine and travel experiences are good topics of conservation;
while topics including war, politics, immigration, drugs or earthquake should not be mentioned.
(Carlo Rossy, 2012) [32].


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2.2.3 Agreement and contract
Mexico is a particularism culture (Trompenaar’s research) and is a country with a high
UAI (uncertainty avoidance) (Hofstede’s research), so Mexicans tend to like legal contracts being
able to modify and remain contracts based on whether their relationship with partners is good or
not.
Many Mexicans believe that the main strength of an agreement lies in its "Commitments
is better than written documents" partners.
Contracts signed may not always be honored. The payment terms are often breached. In
general, the degree of contract compliance depends significantly on the strength of the
relationship between partners. This is strongly encouraged to continue to keep in touch and
maintain the trust of Mexican business partners. Business partners may expect other aspects of
the contract to remain flexible if certain conditions are changed which may include agreeing to
modify the contract terms.
2.2.4 Dress codes
Formal dress is very important when doing business here. Male businessmen should dress
in a tie-matching dark color for most cases. White shirt is considered formal and should be worn
in important meetings. Women should wear dresses or skirts and tops. To look more professional
and polite, the partners should wear white, gray, blue and ivory eyebrows. Wearing jeans during
the meeting is not appreciated and Mexcicans do not like outfits cut and exposed too much (Carlo
Rossy, 2012) [32].
2.2.5 The use of body language
Body language in Mexico is rich and lively [31]. The American-style OK mark is
considered a pornographic symbol in Mexico. Sometimes, anger can hide behind a smile.
Standing on your hips is considered aggressive and keeping your hands in the pockets of
your pants is impolite to Mexicans.
Mexicans may not make eye contact. This is a sign of respect and should not be taken as
humiliation. Men shake hands when meeting and leaving and should be left to the woman who
reaches out first. Women can shake hands with both men and women. At times, a woman can pat
another woman's shoulder or kiss another woman on the cheek. Close friends can give you a hug
when you meet, after working a few times, don't be surprised by a hug. The conversation is

usually at a close distance, the fact that you stand back from the other person is often seen as


15

unfriendly. Mexican men are warm and friendly, they often make physical contact with you, such
as clapping your shoulders or holding your arms. If you avoid this contact it is seen as insulting
them.
2.2.6 Business cards and gift giving
In terms of giving business cards, exchange business cards as soon as everyone introduces
each other at the meeting. Business cards should be printed on one side in English and one side in
Spanish. It is advisable to print your title, including your training qualifications and career
certifications. in because Mexicans take this very seriously. When giving up your business card,
put your Spanish side on top to show your respect for them and put name cards recently received
on the table in front of you. Besides, you also bring more than you expect to need (Carlo Rossy,
2012) [32].
About gift giving, giving business gifts is not necessary but very welcome. However, it is
best not to bring too large gifts for an initial meeting to avoid questioning your motives. Being
able to give small gifts like a pen or notebook with your company logo would be very suitable.
For larger cases, such as concluding a negotiation, it is possible to give elegant gifts that have a
bit of more value.
Giving gifts to leaders is not necessary. Gifts are also unnecessary for dinner, but if they
do, they are also considered important. Great choices are candies, flowers (send before arrival),
or crafts in your home country. When giving flowers, avoid yellow as this color is often used in
funerals. Also should not give gifts made of silver because silver here is often used as cheap
jewelry to sell to tourists [35].
2.3. Notes in business negotiation
2.3.1. Attitudes
High emotional culture should respond warmly to Mexican’s emotional affections. The
use of emotions is common during negotiations Mexican negotiators generally prefer to deal with

people that they know, and they prefer continuity among the organizational representatives with
whom they negotiate (Husted, 1994) [36]. Gaining access to a potential business partner is made
through established networks (friends, relatives, and colleagues), and negotiations typically begin
with extended periods of non-businesscommunication. The proximate spatial orientation that
characterizes interpersonal communication in Mexico reinforces the impression that relationships
are preeminent and can signal the development of respect and trust between negotiators. In the
United States, it is what you know as much as who you know that provides entree, and


16

negotiators are often quick to focus discussions on business issues (Dulek, Fielden, & Hill, 1991)
[37].
The high-power distance and uncertainty avoidance of Mexico is consistent with the value
placed on hierarchical social systems and working through established power structures
(Hofstede, 1991) [38]. Strong class distinctions mean that Mexicans often expect and employ
status differentiators (e.g., titles) and generally prefer to negotiate with the individual at the top of
the organizational hierarchy (Adler, Graham, & Gehrke, 1987; Morrison, Conaway, & Borden,
1994) [39], or both executives should be same level of importance. It is important for individuals
to bring a group of people that are knowledge based workers. These individuals should be
proficient in their area of expertise (Luthan, 2012) [40]. Not only does the latter serve to satisfy
the need for status, but it ensures that one's counterpart has the authority and an incentive (their
mutual friendship) if something in the agreement requires re-interpretation or adjustment
(Husted, 1994) [36]. Consequently, agreements are more likely to be bound by an established
relationship and honor than a legal document (which is more common throughout the United
States) (Stephens & Greer, 1995) [41]. Latin Americans pay homage to this hierarchical system
by extending time frames for special friends or honored guests, even at the expense of other
appointments or obligations (a characteristic of polychronic cultures) (Morrison et al., 1994)
[42].
Leverage relationships is an important factor when negotiating in Mexico. Mexicans,

however, often use allocation and negotiation reserves. While the buyer is in a high position, both
parties have the same responsibility to reach an agreement in the business contract. They hope
long-term commitments from their business partners will focus primarily on long-term benefits.
You will earn partners who respect you by keeping a persistent and positive attitude.
If a dispute arises at any stage of the negotiation process, you can simplify or compromise
by taking advantage of the personal relationships, assuming they are strong enough.
Mexican negotiators, on the other hand, accepting a distinction between normative
(appropriate) and effected behavior, might presume greater latitude in terms of behavior. Using
within-country negotiations and Mexican culture as their frame of reference, Mexican negotiators
might be surprised when United States negotiators mean what they say and say what they believe
and confused if United States negotiators become frustrated with belief-behavior incongruities
and demand more formality in an agreement or contract.


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2.3.2. Language
Language is a significant piece of the Latin American negotiating process, and verbal and
nonverbal expressiveness is normal in Mexico as well (Acuff, 1993) [43]. In fact, emotion and
drama can weigh more heavily than logic in negotiations, and individuals are respected for their
verbal agility (Hendon, & Herbig, 1996) [44].
Spanish is the official language spoken in Mexico. There are more than 100 regional
indigenous languages still spoken today. Accordingly, “the most important of the native Mexican
languages is Nahuatl..” (Mexico-language, 2012). English is widely understood by educated
people and people in the urban regions but if you learn a few Spanish words, even some Nahuatl
words, it will go a long way to initiating yourself as a peer associate.
The high-power distance and high masculinity of Mexico produces a more competitive
negotiator than might be found in other less masculine Latin American cultures such as Chile and
Costa Rica (Brake, Walker, & Walker, 1995) [45]. The give-and-take of bargaining and
negotiation in Mexico, however, is not part of a strategy to win at all costs but rather is aimed at

testing and building relationships within a social framework where honor and respect are
essential (Kublin, 1995) [46].
2.3.3. Information Sharing
When relationships are strong enough, your partners may waive information sharing
openly. Many Mexicans believe that favorable information creates a negotiated advantage. In
addition, the learning and numbers may not be reliable, and have the ability to misunderstand
them.
This is owing to the fact that Mexico is generally considered to be a low-trust culture. It
might be hypothesized that collectivist societies tend to be low-trust cultures. Most of the
literature suggests that Mexicans prefer not to speak out independently but remain interdependent
with a group (Rajagopal, 2006) [47]. This could be a symptom of low trust.
2.3.4. Speed of negotiations
Expect slow and prolonged negotiations. Be prepared to carry out some projects if
necessary to achieve your goals. Relationship building, information gathering, negotiation, and
decision-making can take considerable time. The rush in the process will probably not bring good
results and may even be an attack. Throughout the negotiation process, you must always be
patient, control your emotions, and accept inevitable delays.


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Most Mexicans want a multi-colored working style. They are used to pursue many
parallel actions and goals. When negotiating, they often take a comprehensive approach and can
talk about topics rather than resolving them in order. Negotiators from monoa colour cultures,
such as Germany, Britain, or the United States, may find it a confusing, annoying, even annoying
style. In any case, do not show irritation or anger when encountering this behavior. Instead,
monitor the progress of negotiations at all times, and emphasize previous agreements.
If your partner delays and carefully evaluates the negotiation, whether it slows down
through their process, it says that they are evaluating alternatives or that they are not interested in
doing business with you. Again, patience and perseverance are extremely important.

2.3.5. Negotiating
When negotiating with Mexican corporations you should “be prepared to make quick
decisions and commit (your) organization to these decisions” (Luthan, 2012) [40]. Mexico can
negotiate very wisely and difficult. They often negotiate very hard and have a lot of controversy.
Surprisingly, strong emotions and many exaggerations can accompany this process. The
negotiation exchange can be expanded. Concessions never come easily, and although Mexicans
show interest in new ideas and concepts, they often find it difficult to change their position.
Note that you should not compromise too soon in negotiations because this will be
interpreted as a sign of weakness. Asking for a compromise can become a matter of arrogance if
presented erroneously. Respect the negotiations. Instead of trying to make concessions, it's better
if you discuss disagreements in the next meetings, while also offering your partners the
opportunity to reconsider your position without publicly losing face.
Effective negotiators can move prices by 40 percent or more between initial offers and
final agreements. After talking about a provision, it is best to always ask the other side in
response. Throughout this process, it is still advisable to be calm and respectful, avoid
confrontation, and regularly reaffirm the relationship.
Although Mexicans often prefer a frank style of negotiation, they also use deceptive
techniques, such as lying, sending fake messages, pretending not to care in, to mislead the value
of a provision. Mexican partner can be really stupid trying to fool you to get a negotiated
advantage. Such tactics should not be used to deceive your partner, as doing so can damage
business relationships.
Domestic negotiators can use pressure techniques including making a final offer, applying
time pressure, showing intolerance. Silence can be a very effective way to signal the rejection of


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an offer or maybe further concessions. Partners will often be very persistent throughout the
negotiations.
Negotiations with Mexicans avoid the technique of open aggression or hostility. While

they can indirectly threaten and warn or show anger delicately, they will often not manifest
themselves outside. Extreme manifestations are not frequently used because they can adversely
affect relationships, so it is necessary to be very cautious when using tactics for yourself. Never
stop the negotiations to score points or threaten to do so, your partners will likely consider this a
personal insult and may end the negotiations. However, threatening a 'friendly strike' while
strongly emphasizing the relationship can be very productive.
Emotional negotiation techniques, such as negotiating views or trying to make you feel
guilty, are very frequent and can be effective. Be cautious not to hurt someone's personal pride
when using any of these tactics, though. Using personal relationships and emotional appeals, such
as emphasizing how your proposal will increase your partner's personal satisfaction or enhance
their honor and authority.
On the other hand, negotiations or processes can be slow because of bureaucratic
processes. Corruption and bribery are somewhat common in Mexico's public and private sectors.
Bribery-related laws are also less stringent than in many other countries. They may view small
fees as rewards for job completion or official service costs rather than bribes. Also, keep in mind
that there is a line between gift giving and bribery. What you can see as a bribe, a Mexican can be
seen as having only one good gift. And this is corect with Hofstede posits that weak uncertainty
avoidance countries, such as Mexico, will have a weak work ethic.
2.3.6. Decision-making
Decision-maker are senior executives and often authoritarians, but they will consider the
best interests of the team and organization. They can consult with others before making a
decision. Subordinates may reluctantly accept responsibility. Decision-makers also rarely
delegate their powers, so it is important to behave well with senior leaders. Although, reaching
out to top managers can be very difficult. Maintaining good relationships with intermediate levels
is critical to your success. Decision-making is a very slow process that requires a lot of patience.
Rushing or imposing on this process is useless. However, once a decision has been made, the
remaining steps to close the negotiations usually take place quickly.
When making decisions, entrepreneurs may not rely heavily on rules or laws. They often
consider the specific situation rather than applying the principle. Mexicans who appreciate



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intuition, personal feelings and experience are often stronger than experimental evidence and
objective facts, although both can be considered equally. Mexico is often uncomfortable with
change and reluctant to take risks. If you expect them to support a risky decision, you first need
to find a way to make them comfortable with it, for example by explaining the backup plan,
outlining additional areas of support, or by giving guarantees.
2.4. Organizational structure of the companies in Mexico
Based on the research of Hofstede and Trompenaar, our group suggests that
organizational culture in Mexico's company is family culture (power-oriented culture).
According to the power distance index of Hofstede, Mexico has a high power distance (81
scores) (2016). As a result, the distance between the leader and subordinate is high and the family
- type environment is headed by a leader who is considered as a caring parent.
Whilst Trompenaar’s index research stated that Mexico's culture belongs to
individualism. It means Mexicans tend to address problems by themselves or stress individual
matters.
Besides, “In Mexico, family businesses are the backbone of the economy. Most of them
begin with an idea and the wish to generate jobs and wealth for the family”, “more than 90% of
the firms listed on the Mexican Stock values have a clear family representation in terms of capital
and business control.” and Mexico ranks 5th in the family business in the world (Empresas
familiares.mx, n.d) [48]. As a result, Mexican will tend to work in their family company and
manage the company through the leave of their father.
Therefore, we can regard it as an organizational structure that follows family culture.
2.5 Motivation
Motivation is the internal factor that motivates people to work in terms of their own
strength to create productivity, quality and efficiency of work. It drives us to behave and act in
certain ways. Based on those theories which are introduced at class, we suggest some ways to
motivate Mexiocan employees.
Mexico ranks high in uncertainty avoidance with an UAI of 82. As a consequence, to

inspire Mexican employees the enterprise should guarantee job security.
Moreover, because of being ranked 6th in Hofstede’s masculinity index, Mexico’s high
level of masculinity supports that senior level management should receive higher salaries (what
about Mexico?, 2012) [32].


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Besides, Trompenaar considered Mexico as a country that has an achievement culture.
Following Tronpenaar ‘s research, individuals in this country believe that their status is based on
how well they perform their functions at the workplace. Therefore, the leader should give them
compliments or rewards to motivate them whenever they perform well.
2.6 Leadership
Leadership states that leaders are agents of change whose actions affect others more than
the acts of others can affect them. From this perspective, leadership occurs when a member of the
group modifies the skills of others in the group towards a common goal. [49]
The leadership may be defined as a process by which an individual influences other
individual in order to reach the goals of a group or organization.
2.6.1 Purpose and Methods
According to the research shows managers' leadership practices in Hidalgo State
Mexico Small and Medium Enterprises (SMEs). (Víctor Hugo Robles Francia, (2008)) [50].
The leader challenges processes when searches opportunities, extends risks, experiments,
questions, innovates and improves. To get extraordinary things done. Leaders make use of, Seize
the Initiative, Make Challenge Meaningful, Innovate and Create and Look Outward for Fresh
Ideas. Challenging the process promotes leadership and high performance.
Inspiring a Shared Vision Inspiring a shared vision is the degree to which the leader
describes an interesting vision of the future. When we feel passionately about the legacy we want
to leave, about the kind of future world we want for ourselves and for others, then we are much
more likely to voluntarily step forward.
Leadership is not a solo act, it's a team effort. Enabling others to act is the quantity of

cooperative and participatory decisions taken by the leader. Turbulence in the marketplace
requires the most collaboration, this is an imperative, without it leaders cannot get extraordinary
things done in organizations, they are essentially who have the skills to Create a climate of trust,
Facilitate positive interdependence and Support face-to face interactions. (Kouzes, J. & Posner,
B. (2002) [51].
Scholars who have looked closely at Mexican business practices over time, and who have
subsequently compared these practices to commonplace practices in similar industries in the
United States, have remarked that Mexican managers tend to be more autocratic and paternalistic;
those same scholars also note that this is consonant with the fact that Mexican culture is very