have a plan Bthat is, I arrive in China, I install myself, I start with a product, and if I see that it doesn’t work quickly, I see that there is another product or another situation, apply that plan.
Many entrepreneurs take things for granted. No more than inform youinform you and re-inform you about what the business environment is like, what is happening, where the opportunity lies.
Hire a professional translator. They invest a large amount in hotels, on the plane and in visits; but you do not invest in a translator. Communication in English is not necessarily in English; many of the businesses that fall, get stuck or do not advance is due to communication problems between both parties.
understand the business culture and patience They are very important in international business. Building relationships takes time, it is not on the first visit.
Search Professional HelpThat’s another important issue. Investigate your partners, your advisors, who really have the skills that can lead you to success; Talk to your clients, ask for referrals.
AND: What makes you think that the negotiations between Mexico and South Korea will end in a FTA?
ACE: You just started this topic. But, it is to be hoped that the global companies keep looking solution to logistics or supply problems What are we watching.
Thus it makes sense in principle that, because of these problems and the I cut off the companies look for a more agile supply modelbased on advanced technology, local value chains, alternative supply networks; in a balance between cost and service.
This being the case, it makes total sense that a country that has a lot of manufacturing production and a lot of investment should look for this: that the businessmen than before imported intermediate products from Asia look for this type of instrument, of approaches, to be able to attract more investments, to generate more trade.
AND: What makes Mexico attractive for relocation from Value chains?
ACE: What we call the Mexico’s foreign investment local factors. Which are? The geographic locationthe size of its economy and market Mexican; the T-CM and the network of international deals that Mexico has signed. This is very important because they give us preferential access to more than 46 countries.
The infrastructure that we have for this type of investment, we have been developing it for many years; the more than 30 reciprocal investment promotion and protection agreementssigned by Mexico with many nations.
This set makes everything ideal for producing near the United Statesin what they call nearshoring -transfer of a commercial operation to a nearby country from a more distant one-, this is what Mexico should take advantage of. It is what you should go out and sell and what you should promote in Asia.
AND: How long will relocation take?
ACE: let’s go on that start of relocation. These projects take years to be done It is rather a geostrategic issue of the companies when they analyze where am I going to locate my next production? where am I going to land? What countries can they be? And there is a competition with the countries of Asia.
That’s why we see a lot of investment from Chinese companies that come to Monterrey or in the north, for example; from Asia, from Japan, from Korea we are hearing new investments related to electric cars, or at least hearing plans, because we are in the process of going from a linear chain, in which everything was to reduce costs, to a more agile chain, better located.
