Doing Business in Mexico

by
Format: Paperback
Pub. Date: 2002-01-23
Publisher(s): Routledge
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Summary

Learn what you need to know to conduct successful business in Mexico! This book is a primer on all aspects of doing business in Mexico, with practical examples that illustrate the risks and benefits of Mexican business operations. It provides the basic knowledge that all prospective investors and entrepreneurs in Mexico need, especially in the light of NAFTA. One of the authors is the former CEO and chairman of a multinational, multi-billion dollar company headquartered in Mexico City; the other is a CPA and consultant with small-to-medium-sized firms. Doing Business in Mexico: A Practical Guide provides you with comprehensive, basic knowledge of the pros and cons of establishing a business in Mexico, NAFTA and its implications for businesses, and much more. This single volume gives you what you need to know about: the maquila industry--what it is and how NAFTA affects it information about taxes, labor law, and accounting differences between Mexico and the United States basic considerations in beginning a Mexican operation import/export requirements foreign currency exposure United States tax laws applicable to citizens living abroad . . . and includes five appendixes that supply you with: contact information--addresses, telephone numbers, Web sites--of useful government agencies and journals/periodicals in Mexico and Mexican consulates in the United States Spanish-English and English-Spanish business glossaries examples of Mexican financial statements minimum daily wage rates for various occupations Doing Business in Mexico: A Practical Guide is a must for anyone with an interest in business operations in that country. If you are such a person, this is the one essential volume you cannot afford to miss! Visit the author's Web page at http://www.gusgordon.com

Table of Contents

Preface ix
Introduction to Doing Business in Mexico
1(8)
Why Is Mexico Attractive?
2(3)
Risks
5(4)
Overview of the Maquila Industry and NAFTA
9(14)
The Maquila Program
10(8)
Overview of NAFTA
18(3)
Summary
21(2)
Overview of Mexican Taxes, Labor Law, and Fiscal Requirements
23(22)
Income and Other Nonpayroll Taxes (Federal)
24(6)
Labor Law and Taxes
30(7)
Payroll Taxes
37(1)
Required Benefits
38(2)
Other Benefits
40(1)
Fiscal Requirements
41(2)
Summary
43(2)
Beginning Operations in Mexico: Basic Considerations, Alternatives, and Requirements
45(22)
U.S. Tax and Business Considerations
45(6)
Starting Operations
51(13)
Summary
64(3)
Import and Export Requisites: A Summary
67(10)
NAFTA Requirements
67(2)
Temporary Imports Under the Maquila Program
69(2)
Subsequent Export of Items Temporarily Imported
71(1)
Reports Required to Be Filed with the Mexican Government
72(1)
Summary
72(5)
Foreign Currency Risk: A Primer
77(10)
Causes of Exchange Rate Fluctuations
78(1)
Implications of Exchange Rate Changes
79(2)
Recent Peso-Dollar Exchange Rate History
81(3)
Hedging
84(1)
Effects of Exchange Rate Changes on Financial Statements
85(1)
Summary
85(2)
Management and Cultural Issues
87(20)
Research on Cultural Differences Between Mexico and the United States
88(4)
Cultural Issues in Practice
92(12)
Some Final Thoughts on Americans Managing in Mexico
104(3)
Tax Implications for U.S. Citizens Working in Mexico
107(4)
Overview
107(1)
Specifics
108(2)
Summary
110(1)
Appendix A. Selected Minimum Daily Wage Rates (Amounts in Pesos) 111(2)
Appendix B. Spanish-English Glossary of Financial Terms 113(6)
Appendix C. English-Spanish Glossary of Financial Terms 119(6)
Appendix D. Examples of Mexican Financial Statements 125(6)
Appendix E. Useful Addresses 131(8)
Notes 139(4)
Index 143

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