Mexico is renowned for its rich culture, delicious food, legendary music, and deep historical roots. However, Mexico is also making a name for itself in the world of business.
photo credit: Carlos Aranda / Unsplash
Now more than ever, Mexico is finding its place on the list of global competitors and its economy is quickly growing to become one of the most powerful in Latin America. So much so, that PWC published a study predicting that, due to the strength of its emerging market, Mexico will become the world’s seventh most powerful economy by 2050.
Given that Mexico is an emerging economy, there are many entrepreneurial opportunities to build strong partnerships and establish a presence in the national market. More businesses are deciding to make the move across the U.S border in search of a permanent life in Mexico. Not only does the country boast of lower operational costs but in many ways, employees can benefit from a better quality of life.
Whether you are being relocated to Mexico because of work or you have dreams of expanding your small business abroad, here is what you should know before making the move.
First things first, you’ll need to cover the basic logistics of relocating to a foreign country. This includes visas, housing, schooling, and health insurance. Make sure you do the proper research before setting off to start your new life. A simple call to your country’s embassy can help answer any questions you may have about your visa requirements.
Housing in Mexico is rather affordable; however, you should try to find housing near your place of work as traffic in the city can be a nightmare. Mexican Insurance is relatively straightforward and affordable. Furthermore, there are many international schools in Mexico if you want your children to continue with their education in their native language. There is an array of international schools in Mexico from bilingual, to American and even Japanese.
Stable Exchange Rate
Mexico was one of the few countries to remain relatively unscathed by the global disruptions of the 2008 financial crisis. Therefore, it emerged with a stable economy and exchange rate. The dollar is rather strong in comparison to Mexican pesos, which means you can get a good deal for your buck over there. This leads to increased business opportunities which many companies have taken advantage of.
Construction, operational costs, real estate, and even labor costs are much lower than what you can expect to pay in the United States. Labor costs in Mexico are also very competitive and its rates even compare to those in China. Given that the yen is steadily increasing in comparison to the value of the peso, many American companies have decided to relocate their manufacturing operations to Mexico instead of China.
photo credit: Jezael Melgoza / Unsplash
Great Free-Trade Agreements
Mexican free-trade agreements are exceptionally developed and come only behind those of Singapore. Mexico currently maintains 17 different free trade agreements with a total sum of 49 countries. The only other open economy with better free-trade performance than Mexico is Singapore who currently boasts of 23 active free trade agreements.
The most important free trade agreement that Mexico has is the North American Free Trade Agreement (NAFTA) which bolsters trade between the U.S, Canada, and of course, Mexico. The second most comprehensive trade agreement is their deal with the EU which allows for almost all items to be exported and imported duty-free. Other important agreements are its trade deals with Japan, Colombia, the Pacific Alliance, and Central America. All in all, its impressive repertoire of trade deals provides many manufacturers with a great deal of security.
Close Proximity to the United States
Given that Mexico and the United States share a common border, they also share a common time zone. This makes business relations between the two countries much more fluid and manageable. It’s much easier to get on the phone with an office in the same time zone than with one in Asia that can be hours ahead.
If you frequently do business in both of these countries, their close proximity will save you countless hours that can be better spent dealing with other aspects of the company. Furthermore, if you have several headquarters or factories in either country, managers can even commute to the office for a day visit.
Overall, there are many advantages to moving to Mexico for work, not only can you benefit from its great free trade agreements, close proximity to the states, and stable exchange rates, but the day-to-day life is extremely enjoyable. Mexico has a warm and inviting culture, alongside great weather and delicious food. Moving to Mexico for business purposes could be the opportunity that you have always been waiting for. Don’t sit around waiting for it to happen, take a leap of faith, and get stuck in!