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2. Would cultural differences be a major stumbling block for U.S.

MNCs doing
business in Mexico? For European firms? For Japanese firms? Explain your
answer.

I don’t think culture differences would be stumbling block for U.S. and European MNCs
doing business in Mexico due to the sustaining of Mexico’s booming maquiladora assembly
industry. Also, I believe if this same question was purposed ten or even five years ago T would
agree that culture differences would became major stumbling block for U.S. and European
MNCs, however, Mexican culture is enriched throughout the United States. Although I do
believe cultural differences, initially would become a stumbling block for Japanese firms, even
though Japanese MNCs have large holdings within Mexico, there are distinctive differences
between the two cultures as well as less chances for interaction in understanding each other’s
culture.

In addition Mexico is one of the youngest countries in the world whereas approximately
55% of the population is under the age of 20 while a mere 4% is 65 years of age or older. In
contrast Japan has one of the oldest population rich in history and tradition.

Japanese culture is popular for accuracy and hard-working, they are very punctual. But they
also can not follow the oppressive American attitude toward time. Europeans are very punctual
in business especially. Although they never work in vocations.

The attitude to truth which is the most barrier of their communication. In Mexico, the most
important things is not the truth but the sociable conversations. For example, it is usual for
Mexicans that to answer a wrong way and tell their bosses that they have finished their task
even though they actually have not started it. In Mexico, it is usual to be friendly rather than
being professional, some Americans can be suspicious of early friendliness in discussions.

Americans attach a great focus on the truth and honesty. Americans and Europeans are
almost affecting Christianity, so that they are understated by Ten Commandments and they are
demanded to tell the truth and being honest. Japanese culture is traditional, which is similar
with China, so they are also against telling lies and being dishonesty.

The last one is communication style. Normally, Mexicans are more flat and laugh at others
than the US and like to attract attention from others. This is result from Mexicans are more
respective to people who can make a great impression to people. They want to emphasize the
differences of people gender, social status and ages when doing business. In addition, they will
not say ‘no’ in communicate, they focus indirect ways to show their ideas.

On the other side, Americans, Europeans and Japanese always suspect the people who
extremely treasure themselves and despise people who give too much attention to title.
Moreover, Americans are the most sensitive nations about gender in business. Europeans and
Japanese are also not accustomed to emphasize the social status and ages of their business
partners. They also not as sensitive as Americans.

Europeans and Americans usually communicate in direct ways in business, for Japanese in
business, they are communicate in an indirect ways with others.

It will not play huge major road block for MNCs, if European and Japanese MNCs were to
operate business in Mexico. Where their days begin slowly before getting right to business,
there are similarities in the way the two culture start their days.
3. Why might MNCs be interested in studying the organizational culture in
Mexican firms before deciding whether to locate there? Explain.

MNCs might be interested in studying organizational culture in Mexican firms before


deciding whether to locate there to estimate if they can handle this different culture and
establish the appropriate corporate culture. If MNCs locates in Mexico, they will employ
Mexicans to be their workers and even executives, so that the main part of its subsidiary
company is Mexican.

To explain why organization culture is so important, there are some factors. First and
foremost, organizational performance affected by organizational culture. The identity will
produce consistent behaviour at work that will lead to the completion of the organization’s
strategy. In corporate can achieve business goals more easily if more widely the employees
accept the corporate culture.

Organizational culture is a sign and an important reason that the organization accepted
by the market. The most important ways for customers, suppliers and investors confirm a
certain corporate is the enterprise’s organizational culture such as enterprise brand,
reputation, enterprise concept, style and so others. On the other side, when they decide
whether to choose this company or not, the organizational culture is selection for standard
for employees. For employees, the corporate personality can be organized by the good
enterprise culture.

Lastly, organizational culture is the main point to differentiate itself from competitors
for an organization and also the core competitive advantage s. Organizational culture will
become the most valuable resource in competition, when the outcome and financial markets
reach equilibrium. In addition, appropriate organizational culture can make up the
inadequacy of technology and capital in some respects.

It is important for MNCs to study the organizational culture in Mexico which is their
target market and establish an appropriate organizational culture.
BBA (HONS) ACCOUNTING

FACULTY BUSINESS AND FINANCE

BBI4313 INTERNATIONAL MANAGEMENT

TITLE:

INTERNET EXERCISE: MEXICO

PREPARED BY:

NURUL IZATI BINTI ROSLAN

16063824

PREPARED FOR:

SIR HAJI JOHARI SHAARI