Rosewood Case Study: Country Profile Mexico

Rosewood Case Study: Country Profile Mexico

Briefly Appendix 2 Data is out of date and paints a rose-coloured glasses image of trade with Mexico. Caveat empor! In all things, due diligence and the latest trends and market data must prevail. ANything less might highlight complacency.

Political Legal Regulatory Factors:

Prior to the election of Vicente Fox, a former Coca Cola Executive, the Institutional Revolutionary Party ruled Mexico for 71 years. Reforms instituted since NAFTA have allowed regulatory agencies to develop business-friendly registration processes, and clear legal frameworks for foreign investors. However challenges remain in simplifying legal frameworks, compliance and enforcement, tax system, and regulatory appeals processes, all from the OECD. http://www.oecd.org/document/5...873595_1_1_1_1,00.html

Labelling, import regimes, documentation, insurance, direct sales taxation, transfer pricing, Vienna Convention regulations, trade disputes arbitration under Mexican and NAFTA processes are all relevant areas of interest to Rosewood's Logistics Plan and may be reviewed in detail at BancoMext. http://www.mexico-trade.com/table.html

Economic and Stability Factors:

The Mexican economy is described as highly linked to the US economy. The early 1990's provided opportunities for learning about currency crises provisions following a 1994 devaluation of the peso and an IMF bailout program which influenced export growth. Per capita growth has been mostly absent since that time. Poverty effects most regions of Mexico and is one of the most serious economic problems however in accordance with Latin American averages. This may be entirely irrelevant to Rosewood if their sole buyers in Mexico are represented by the idle rich of the nation. This data is from a US Congress Report from 2005. http://www.fas.org/sgp/crs/row/RL32934.pdf

The IMF anticipates 4% overall growth for Mexico from a Wharton School of Business article on 2008 forecasts. http://www.wharton.universia.net/index.cfm?

Cultural and Social Changes:

Historian Lorenzo Meyer describes the lack of development of the middle class consumer market in Mexico, ''The idea of Mexico as a middle-class country is a delusion. This is a country of extremes.'' An inability to raise investment capital appears to minimize growth opportunities for middle income earners again perhaps irrelevant to Rosewood. Small and medium-sized businesses are often ineligible for bank financed credit opportunities and presents a historical hierarchical social stratification which has existed since the days of Cortez. Sourced from today's New York Times. http://query.nytimes.com/gst/f...spon=&pagewanted=2

Technological Changes:

Media globalisation perhaps represents the largest factor in Mexican technological change with direct to home and internet based media showing tremendous gains which might implicate real e-commerce opportunities for Rosewood. However without middle class buyers economies of scale could be problematic. This data is sourced from a 2006 article. http://www.entrepreneur.com/tr...ticle/157946573_5.html