Mexico is a civil law country. U.S business people and foreign owned corporations doing business in Mexico must directly and indirectly deal with the Mexican legal system. Business people through an international contract, which they enter into with a Mexican company or individual, might encounter Mexico's system. Most of the contracts are negotiated covering the distribution of products, the granting of franchises, or the transfer of technology, amon

METHODS FOR MARKETING AND DISTRIBUTION

The impact on workers has been devastating. A majority of Mexican industrial workers worked for the government, and the organized labor movement had its greatest strength in the state sector until the transformations started in the 1970s. Three decades ago three-quarters of the workforce in Mexico belonged to unions, less than 30 percent do so today. In the state owned oil company, PEMEX, union membership still hovers at 72 percent. When the collateral petrochemical industry was privatized over the last decade, the unionization rate fell to 7 percent. New private owners reduced the membership of the railway workers union from 90,000 workers to 36, 00 in the same period. The labor landscape began to change seven years ago when founder President Zedillo announced plans to put the electrical system up for sale.

The failure of NAFTA in regards to job displacement has already affected all three member countries, especially Mexico. Mexican workers, who fear maquiladorization of Mexico, see these factors as a tool of dependency. While these foreign businesses use low skilled Mexican labor, they do not provide significant training or education. Higher skilled jobs remain in the United States. Mexican critics believe that NAFTA will produce a maquiladora economy throughout Mexico, with low wages, low technology, and little chance for advancement within the labor movement. With free trade, wages would rise in Mexico; therefore they encourage those to stay in their home country and work.

The Mexican water market has yet to be targeted by any U. S. suppliers. European brands have led the way. Given the garrafones large size and free delivery, home delivery accounts for 90% of bottled water sales in Mexico. Dole Consulting estimates Mexico to have a retail point of sale universe for bottled water of 350,000 outlets.

When doing business in a foreign country that uses a different currency it is important to pay attention to the currency exchange rates. According to www.banxico.org, the monthly average exchange rate for pesos to US dollars in September 2002 was 10.0425. This number fluctuates with the different interest rates and the different inflation rates that may be occurring at the time. Some companies find it safe to use special drawing rights (SDRs), established by the IMF as units of value to replace the dollar as a reserve asset, to do business with (Ball, p. 196). The use of SDRs can eliminate confusion and possibly loss of money by establishing a set amount that is to be paid. If the company is not able to use SDRs, than it is smart, if the exchange rate is going to cause a loss of money, to reinvest the money into the country. In this case the bottling water company would just reinvest the money back into Mexico either in the company itself or into something else.

Some topics in this essay:
Distribution Mexico, World Bank, MEXICO Bottled, United Mexican, Labor Statistics, According Ball, Puerto Vallerta, Rosa Garabito, Commercial Service, ECONOMIC CLIMATE, bottled water, water market, bottling water, free trade, water industry, north american, bottled water market, financial viability, bottling water company, water company, american free, political climate, north american free, american free trade, foreign direct investment,