Doing business in Mexico

Each month we offer our clients, learners and friends in the industry, free briefings and expert advice for living and working in different cultures.  We'll email each monthly cultural newsletter directly to you, all you have to do is subscribe.

Mexico is located in the North American subcontinent and is bordered by the US to the north, Guatemala and Belize to the south, the Gulf of Mexico to the east and the Pacific Ocean to the west.

Mexico has a rich heritage of native traditions and legends, as well as of Spanish and other cultures. Over time, these traditions have mixed and then evolved independently. Native traditions and values are common: a festive spirit, a strong spirituality and common values of kindness and hospitality.

Mexico has the largest population of Spanish speakers in the world – about two and a half times that of Spain or Colombia. The population is almost 130m people. There are ten cities of over a million inhabitants and over 22 million people live in the metropolis of Mexico City. Many Mexicans refer to their heritage and raza (“race”) with a measure of pride – particularly on October 12, the Día de la Raza (“Race Day”).

Income levels and living standards in Mexico have been rising steadily since the 1994 passage of the NAFTA free trade agreement. Electronics and auto manufacturing are key industries. The middle class in Mexico, though still small by global standards, is at 47% of the population and growing.

Mexico's business culture reflects a blend of traditional values and modern practices. Mexican business culture is generally hierarchical. Decisions are often made at the top levels of management, and senior executives typically have the final say. It is important to show respect to authority and understand the chain of command. Titles are important, and people may initially be addressed by their professional titles, such as "Licenciado" (for someone with a bachelor's degree) or "Ingeniero" (for an engineer). Using "Señor" or "Señora" followed by the last name is also common but this depends on the industry and organisational culture of the company you are working with.

Mexico’s culture is generally group oriented. Building strong personal relationships is vital. Trust is often established through face-to-face interactions and long-term relationships. Business dealings may move more smoothly once a strong personal rapport is established. Personal networks may open doors and solve problems that would otherwise be difficult to master, therefore maintaining honest and cordial relations is crucial.

While Mexicans are usually warm and friendly, they are also proud. They tend to communicate in a more indirect and polite manner, especially when dealing with sensitive topics. It is important to be diplomatic and avoid confrontation. Reading between the lines is often necessary, as people may not say "no" directly but use more subtle language to convey hesitation or disagreement.

While discussions may get very lively, Mexicans generally dislike loud and boisterous behaviour. They may show their emotions openly. However, it is crucial that you never lose your temper or appear impatient, as there is always a risk of hurting someone’s pride.

While punctuality is valued in formal business settings, there is often a more relaxed attitude toward time, especially in social settings or less formal meetings.

Mexican leadership is often characterised by a top-down approach, where decisions are made by those in senior positions and passed down to subordinates. Leaders are expected to provide clear direction and maintain control over decision-making processes. Authority is generally respected, and subordinates may be hesitant to challenge or question their superiors. While leaders typically have the final say, there is often a consultative aspect to Mexican management styles. Leaders may seek input from their teams before making decisions, particularly when it involves significant changes or affects the group as a whole. This approach helps build consensus and ensures that employees feel involved and valued.

Although Mexican leaders can be flexible, there is often a resistance to rapid or significant change, especially if it disrupts established routines or relationships. Leaders may prefer gradual change that allows time for adaptation and minimises disruption.

Traditionally, leadership roles in Mexico have been dominated by men, but this is changing. More women are taking on leadership positions, particularly in urban areas and in industries that emphasise gender diversity. However, women leaders may still face challenges related to traditional gender expectations.

Meetings may appear somewhat disordered, with interruptions and several parallel conversations, but business is a serious matter in Mexico. Do not take this personally, it does not indicate a lack of interest. It is unrealistic to expect initial meetings to lead to straight decisions. In addition, it is rare to get open opinions at early meetings, so watch for subtle clues and use other opportunities such as one-on-one conversations or business dinners to learn more.

Expect negotiations to be slow and protracted. Relationship building, information gathering, bargaining, and decision-making may take time. Attempts to rush the process are unlikely to produce better results and may be viewed as offensive. Remember, Mexicans can be tough negotiators.

Finally, when doing business in Mexico, you will find that first names are not always used initially as they are reserved for family and close friends. Wait for someone to address you by your first name before doing so yourself. People have three names: their first name, their paternal name and their maternal name. Written, they will use all three (or the third will be often abbreviated with the first letter), but verbally they will use the first two. For example, Maria Vazquez Laredo would introduce herself as Maria Vazquez, or Señora/Señorita Vazquez.