Currently, the attention of the world community is attracted by the rapid development of the “new industrial countries” of Asia, Africa, and Latin America. Despite the significant gap in socio-economic development from the countries of Asia and Africa, Latin American states have several standard features. The culture of entrepreneurship in Mexico is such that it is protected from the law and ethics of the state. Nevertheless, an entrepreneur in Mexico needs to know the culture of this state and have an idea of the state of its economy, legal system, and political situation in the country.
tailored to your instructions
for only $13.00 $11.05/page
Over the past two decades, not all Latin American countries have been characterized by noticeable progress. Despite the commonality of historical destinies, the similarity of socio-economic conditions of development of the region’s countries, there are significant differences between them (Osorio-Novela et al., 2021). Brazil, Mexico, and Argentina have significantly surpassed other countries in terms of industrial development and the maturity of capitalist relations. Progressive changes in the sectoral structure of the economies of these countries have contributed to further strengthening their positions in regional industrial production.
Mexico’s legal system as a whole belongs to the Romano-Germanic legal family, being part of its separate Latin American group. Like many other States of this group, it was formed based on four legal cultures: Indian, Spanish, French, and Anglo-American. Its initial basis was the socio-normative system of the indigenous population – Indians, which has partially survived today, especially in the field of organization and activity of rural communities (Alvarado Lagunas et al., 2018). The Spanish colonialists were forced to recognize them and authorize the existence of Indian legal and pre-legal norms. Colonization activity led to the establishment of the Spanish legal culture on the territory of Mexico, built on the traditions of Roman law and Roman legal thinking. Gradually, the norms in force in colonial Mexico – Spanish and New Spanish legislation and Indian law – formed a single legal corpus.
Mexico’s macroeconomic indicators in the context of global financial instability remain reasonably high, as in other countries of the region. However, internal socio-economic problems persist, which hinder the development of Mexico and thereby have a significant impact on the official position in this area. For Mexico, as an oil exporter, the volatility in energy prices is also relevant. As an entrepreneur, the author of this work proposes to develop an alternative- wind and solar energy as a measure to reduce the impact of energy price volatility on the Mexican economy (Alvarado Lagunas et al., 2018). In addition, they also propose to expand the structure of exports, thereby reducing the share of oil and refined products.
The object of the assessment is alternative energy sources in Mexico, among which wind and solar power plants can be distinguished. This type of service is in demand, as there is a tendency to switch to more environmentally friendly fuels. In addition, the construction of wind and solar power plants will create a large number of jobs, which, in turn, will contribute to the fight against poverty in Mexico (Osorio-Novela et al., 2021). The need for specialists in new jobs will enable young people to receive appropriate education, thus solving the problem of drug addiction. Also, the introduction of alternative energy sources will entail new investments that will benefit the country’s economy. All this will contribute to reducing economic inequality between rural and urban populations.
The degree of probability of an entrepreneur entering the market is high, since the priority directions of the Mexican government’s policy are:
- Measures to mitigate the negative impact on the economy of the volatility of prices for energy and agricultural goods.
- Elimination of labor market imbalances.
- Search for solutions to reduce the income gap of the population (Bagley, 2019).
The Mexican authorities are making great efforts to mitigate regional differentiation, reduce poverty, improve the quality of life, and ensure equal access to education and health care. Thus, taking into account the legal system of the state and the numerous economic problems of Mexico, alternative energy sources are a promising type of entrepreneurial activity.
as little as 3 hours
Necessary Aspects and Approaches
It is possible to list two methods of product entry into the international market in Mexico: export and joint ventures. Export is the production of goods by a company in its own country and their subsequent sale abroad. The advantages of this method are associated with the absence of operational risks abroad and with the lowest costs of entering the foreign market. Export is the first step towards integration into international markets. Companies can start exporting their products to test the market of another country (Bagley, 2019). The disadvantages of this method are due to the company’s lack of control over the promotion of goods in another country.
A joint venture is created jointly with a local company and combines companies’ resources from different countries. It aims to introduce a shared product on the market. The advantage of creating a joint venture is that the risks are shared between the two partners. Companies can use each other’s strengths, creating a synergy effect (Osorio-Novela et al., 2021). The local partner usually has the best knowledge of the local market, local legislation, and the preferences of the local consumer. However, many joint ventures end due to various kinds of conflicts between the owners.
Mexico is a multicultural and multinational country; therefore, various features should be taken into account using certain advertising practices. Firstly, it should be remembered that television plays a greater role in shaping public opinion in the country than radio, so it would be inappropriate to advertise one’s product on the radio (Alvarado Lagunas et al., 2018). Television and advertising in Mexico are developing as a means of entertainment for viewers, so the advertising strategy of the product should be based on light humor and not focus on the problem.
It is worth paying attention to offline strategies since most Mexican people prefer television and newspapers to the Internet. In addition, advertising strategies should be massive to attract as many people from different population segments as possible. Finally, an advertising strategy for introducing alternative energy can be a flute, that is, intensive at the beginning and a gradual decrease in activity towards its completion (Alvarado Lagunas et al., 2018). This type of advertising is because alternative energy is a relatively new product for the Mexican market.
Two approaches are recommended for this type of service to comply with the law when conducting international business in Mexico. Firstly, it is necessary to comply with advertising legislation, which is designed to protect consumers from harmful effects. It is recognized as advertising, misleading, causing substantial damage to property or health. In addition, such intellectual property can undermine reputation or dignity (Bagley, 2019). Secondly, it is necessary to comply with the norms of corporate law, which are aimed at regulating public relations on the organization and activities of enterprises and organizations.
Regarding ethics and social responsibility in Mexico, corruption should be considered one of the most severe social and economic problems. In addition, an essential factor is competition, which, although alternative energy is a relatively new product, can hurt business (Falk, 2019). Thus, it is necessary to adhere to correct and effective advertising strategies and remember the dominance of corruption in the government sphere.
Alvarado Lagunas, E., Dávila Aguirre, M. C., & Vázquez Zacarías, M. A. (2018). Factors that influence the continuity and survival of a micro-business in Mexico. Contaduría y administración, 63(3), 0-0. Web.
Bagley, B. M. (2019). Mexico: The promise of oil. In Latin America and the US National Interest (pp. 123-170). Routledge.
Falk, P. S. (2019). Introduction: Mexico’s political economy—oil and the costs of development. In Petroleum and Mexico’s Future (pp. 1-6). Routledge.
Osorio-Novela, G., Mungaray-Lagarda, A., & Ramírez-Angulo, N. (2021). Social enterprise in Mexico, a new business classification. Sustainability, 13(16), 9264. Web.