Friday, October 29, 2010

Cultural Proximity between the US and Mexico

By Beatriz E.

There are a small number of countries who have the same relationship as Mexico and the United States. Due to their shared border, trade and demography, these two countries enjoy a convenient relationship for outsourcing. Also they have some sort of degree of cultural proximity which isn’t enjoyed with other countries like Asian ones.

Cultural proximity is defined as the relationship between two markets that have a high level of cultural similarity.

None the less, differences can’t be ignored. It would be wrong for me to say that Mexican and American culture are like two drops of water. I’m sure that you know that’s not the case. Even though the exchange of ideas, influences and goods is at its best state; they have a strong sense of identity that separates one from another. This is founded on the perceptions they have of each other across the border.

However, there are some misconceptions against Mexico and some real differences between these two countries, which I will like to further explain.

For some, Mexico is the place of sombreros and siestas, it is hard to believe that in this age that’s the first thought that pops to mind when they think of Mexico. Although many people know that this is not true, they still have that preconceived judgment and are hesitant to do business with Mexico, since they think they’ll be lazy. Today Mexico has proven this wrong with its growth despite the economical crisis. Besides, it has a very low attrition; this means that there isn’t a gradual reduction in work force of personnel resigning or retiring, which is very convenient to do business with.

As far as the differences, in Mexico almost the entire country has the same religion which is Catholic. Therefore, a minimum awareness of other religions exists; making of Mexico a sensitive country. That’s why Mexican firms are focused on making sure that the employees are aware of the diversity in the U.S.

One outstanding city, that has proven these misconceptions wrong and has overcome differences regarding culture is Monterrey.

Monterrey is one of the largest bases of international commercial exchange in Mexico. Exchanges of this magnitude make work culture and ethics to be very similar. Business done in Monterrey have an American style; also locals keep the government as far away from their business every time they can.

This city is a major industrial center in the northern part of Mexico, it was rated by Fortune magazine in 1999 as the best city in Latin America for business and currently it ranked third best by the América Economía Magazine.

Monterrey is known as "The Sultan of the North", some think that the reason why it is called like that is due to the fact that this city is probably the most business friendly city in México. Its enormous industrial and commercial center has grown because of its amiable and open business climate.

This city is also recognized for its highly educated work force, complimented by many colleges and technical learning centers, causing an ongoing trainable work force. One of the best higher learning universities in all of Latin America is Tec de Monterrey. Also the unemployed percentage of the population is constantly the lowest in Mexico. Its overall economy and surrounding areas reflect its success.

Not only are the largest cities of Mexico proving the benefits of doing business with the U.S. but also startups to Fortune 500 companies are discovering the benefits of using Mexican companies for their IT needs.

Forrester Research recommends ... “Companies interested in the cost and quality benefits of offshore labor, but which require a closer, less risky solution should strongly consider Mexico as an important nearshore option. Projects with intensive collaboration requirements, internal domain expertise requirements or a medium to high degree of end-user participation are often more suited to nearshore outsourcing models, since travel between vendor and client is easy and time zones permit real-time collaboration.”

Forrester “Mexican Nearshore Outsourcing: A Promising Global Sourcing Alternative”(March 2003)

Many Mexican firms when asking their US clients regarding what they like most about working with them, they all have answered the same: the fundamental similar culture. This is because Mexican professionals are exposed to business practices, culture and administrative concepts typical of the US because many of them work for global or US companies. Society in Mexico closely follows the cultural, sports and entertainment events in the US, this helps to foster excellent integration of the day-to-day work teams.

As a conclusion it can be said that currently Mexico and the US enjoy a unique and convenient relationship that many countries wish to have. Differences need to be acknowledged and overcome with tolerance and disposition, the rest is particularly easy.

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