What You Need to Know About Expanding Your Business to Mexico

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What You Need to Know About Expanding Your Business to Mexico
With huge potential, Mexico is a country that has demonstrated predictable, stable economic growth.It's a land of cultural tapestry and a
canvass of opportunity, being America's neighbor to the south and Guatemala's northern rock. Mexico is a delicate balance of history and
innovation. There has been substantial improvement in `The United Mexican states', (official name of the country).
Expanding to Mexico could be the Business Move of a Lifetime
As Mexico enjoys the close proximity of two continental markets, it is surrounded by distinctly developed and excitable emerging
economies. The country ranks in the best top three emerging markets in which business can be done. Mexico has more free trade
agreements than any other nation in the world: 12 bilateral agreements with over 43 countries. There are vast opportunities for foreign
investors who are interested in conducting business here. With analysts predicting that the economy will be larger than the UK by 2040,
Mexico has a dynamic market. So as a businessman, your transitional timing cannot be better.
Understanding the Economic Climate in Mexico
When d
oing business overseas , it is important to study the economic situation before expanding there. Mexico is the largest trading nation
in Latin America, and one of the world's top fifteen trading nations. The country has high levels of foreign direct investment with its GDP
growing steadily. The GDP has been driven by Mexico's competitive production costs, and its membership of the North American Free
Trade Agreement (NAFTA). As the economy has grown so has the demand for imports. Mexico has reached a level of political maturity and
economic stability that makes it a more attractive place to do business than other developing countries
The Mexican Foreign Investment Law
In order to reduce delays in the processing of many government business requirements there were new amendments to the Mexican
foreign investment law. The law also promotes foreign investments, provides added security to foreigners investing in Mexico and also
simplifies the procedures for investments here.
Exploring the Business Opportunities
The main industrial sectors are the automotive industry, whose standards of quality are internationally recognized, cement production, the
alcohol beverage industries and high-tech industrial production. Mexico is also the sixth largest oil producer in the world and the
eighteenth in gas production. Tourism is a huge industry, with the popular beach resorts.
Are there Challenges?
Expanding business overseas can be complex. In Mexico besides the obvious language and cultural barriers, there is also Mexican
bureaucracy, labor laws and a complicated tax regime that can be tremendously challenging. It is best to seek the advice of an expert to
avoid costly mistakes in future. A business expert can provide specialist expertise in market entry, labor laws, i nternational accounting,
and also provide valuable advice on the overall operational, administrational and executive aspects of your business.
Know more: Expat tax advice, Regulatory filings