BASIC PRINCIPLES OF GLOBALIZATION.

DIFFERENCES BETWEEN CULTURE AND

CUSTOMS OF OTHER COUNTRIES.
Introduction

Globalization is an economic, technological, social and cultural large-

scale process, which involves increased communication and interdependence
among countries of the world, uniting their markets, societies and cultures,
through a series of social, economic and political transformations giving them a
global character.

The term globalization encapsulates a reality usually presented as

uncontrollable and unruly in which people of a country or countries, individually
and/or through any intermediary or intermediaries interact in ever greater
proportions, with people from other countries.

The most important steps in the raid of Mexico in globalization were:

Admission to the GATT (now the World Trade Organization - WTO) in 1986. The
opening to foreign capital represented by the establishment of NAFIN Fund in
1989 and subsequent public offering on the NYSE ( New York Stock Exchange -
NYSE) in 1991. The privatization of banks between 1991 and 1992. The process
globalization was strengthened with the implementation of the Free Trade
Agreement (FTA) in 1994 and the accession to the OECD in the same year.

In this essay I will compare different countries, which have commercial

trades with Mexico, like the United States of America, Canada, China, Germany
and Japan, and I will compare these countries in different economic, political,
cultural and ethical aspects.
 Mexico and the United States of America

There are several important cultural differences when it comes to the

United States of America and what is officially known as Estados Unidos
Mexicanos (or the United States of Mexico). Despite the countries close
proximity, and the significant number of Mexican Americans and immigrants
currently living in the United States, Mexican culture is predominantly formed from
Spanish and Indigenous cultures while American culture has largely developed
from a mixture of influences from various European, African, Native American
and Asian cultures.

The United States, too, has had an effect on Mexican culture, including on
its political culture except for a significant difference in how voters organize and
government decision-making is carried out. While Mexico modeled its official
name after the United States of America and has a similar political structure,
having chosen to create a bicameral congress and a democratic republic
composed of a three branch government: judicial, legislative, and executive,
Mexico hosts a multi-party system, whereas America operates a two-party
system. Two left-of-center parties: the socialist Partido Institucional
Revolucionario (PRI) and Partido de la Revolucion Democratica (PRD) and a
right-of-center Partido Accion Nacional (PAN) make up Mexicos three major
political parties, while the left-of-center Democratic Party and the right-of-center
Republican Party compose Americas two major political parties. This is an
important difference as political activity, voter turnout and loyalty, and manner of
governance are all impacted by the number of major parties in a political system.

Mexican culture also differs from American culture when it comes to

language. Spanish is the national language of Mexico, brought by the
Conquistadors during Mexicos colonization, and while the United States does
not have an official national language, English is spoken by 96% of the
population, most business is conducted in English, and to become a U.S. citizen,
applicants are required to proficiently write, speak, and read English. Spanish, a
member of the Romance language family, shares some words with English, a
Germanic language, on account of the impact of Old French on the English
lexicon. Despite this, English and Spanish are very different languages with
contrasting grammatical, phonological, and writing systems. Language shapes
the way we think and culture determines the way in which thoughts are
expressed, as such, Spanish and English differ significantly in the way many
basic concepts are conveyed.

Talking about economy, Mexico is one of the United States key trading
partners, ranking second among U.S. export markets and third in total U.S. trade
(imports plus exports). Under the North American Free Trade Agreement
(NAFTA), the United States and Mexico have developed significant economic
ties. Trade between the two countries more than tripled since the agreement was
implemented in 1994. Through NAFTA, the United States, Mexico, and Canada
form one of the worlds largest free trade areas, with about one-third of the worlds
total gross domestic product (GDP). Mexico has the second-largest economy in
Latin America after Brazil.
Mexicos gross domestic product (GDP) was an estimated $1.3 trillion in
2014, about 7% of U.S. GDP of $17.4 trillion. In purchasing power parity, Mexicos
GDP is higher, $2.1 trillion in 2014 or about 12% of U.S. GDP. Per capita income
in Mexico is significantly lower than in the United States.
The United States is, by far, Mexicos leading partner in merchandise
trade, while Mexico is the United States third-largest trade partner after China
and Canada. Mexico ranks second among U.S. export markets after Canada,
and is the third-leading supplier of U.S. imports. U.S. trade with Mexico increased
rapidly since NAFTA entered into force in January 1994. However, violence in
Mexico remains an issue and security risks could threaten economic growth.
 Mexico and Canada

Mexico and Canada share a close relationship increasingly intense.

Since the signing of the NAFTA, the trading between both countries increased
considerably and now they are major partners. Over the last decade, while it has
expanded the political relationship between Canada and Mexico and have
increased trade relations, also the cultural relationship has expanded and
diversified

Even when Mexico and Canada have many differences for example in language,
population, currency, government, etc. both countries are members of OECD and
the United Nations, and are strategic partners.

Since the entry into force of the Free Trade Agreement (NAFTA) in 1994 America,
Mexico and Canada have developed a strong and growing trade relationship.
Trade between Mexico and Canada rose 8.7 times, going from $ US $ 4.1 billion
of (MMD) in 1993 to $ 35.4 billion dollars in 2012. In the period from January to
September 2013, bilateral trade was $ 14.8 billion USD. Mexicos exports to
Canada totaled $ 7.7 billion dollars, while imports $ 7.1 billion dollars. Mexicos
GDP is $1.26 trillion and Canadas GDP is $1.83. Canada is the third largest
trading partner of Mexico and the second largest destination for Mexican exports.

So, Canada and Mexico share a dynamic and prosperous relationship: as friends,
as North American neighbors and as strategic partners in the Americas and
worldwide.
 Mexico and Germany

Relations between Mexico and Germany began in the colonial era, with
the arrival of religious and German technicians to our territory, consolidating until
the nineteenth century. The contribution of Alexander Von Humboldt, who
promoted Germany's interest in botany, mining, geography and the Mexican
economy, played a key role in the initial development of bilateral contacts.
Humboldt wrote about our country: "If you could only call a paradise in the world
that would have to be Mexico.
Even when two countries have great cultural, economic and ethical
differences, for example their currency, language, years of education, etc., the
trade links between the two countries were gradually strengthened with the
signing of trade agreements and navigation, and this political and cultural ties
were added.
Today both governments maintain a firm commitment to work in the
consolidation of a dynamic political relationship, based on the EU - Mexico Global
Agreement and the objectives of the bi-regional dialogue Latin America and the
Caribbean-European Union (EU-LAC) and the G20. Mexico and Germany shared
interest in strengthening the multilateral system and maintain close cooperation
in international fora on issues of common interest such as democracy, respect
for human rights, environmental protection, the codification of law and federalism.

In commercial terms, the economies of Mexico and Germany have the

closest relationship in the framework of the European Union, given the wide
complementarity of them. The successful experiences of investment and
establishment of German companies in Mexico and Mexican in Germany are
proof of the strength of this relationship. Suffice it to say that more than 1,300
German companies in Mexico as a whole have 120 000 employees and an
estimated accumulated capital to 25 billion US dollars ( mmdd ) and productive
activity accounts for about 7% of our GDP industry.

At present, Germany has become for Mexico as a trading partner among

the countries of the European Union, covering more than a third of total trade
between Mexico and the EU -27. On the other hand, Germany was in 2011 the
fifth in importance in the total foreign trade of Mexico, after the US, China, Canada
and Japan. As a supplier in 2011 Germany ranked fourth, after the US, China
and Japan, and as a country buyer of Mexican products in seventh place, after
the US, Canada, China, Colombia, Brazil and Spain.
 Mexico and China
China is a country that respect to Mexico has 12 times more population,
4 times more territory, 8.6 times more arable land and similar population
structure. It is worth to say that China has about 300 million people with
purchasing power and make its middle class. It is expected that in 2020 the
middle class in China means 40% of the population. Because of strategic
decisions taken by China, Mexico should see this country as a long-term strategic
partner.

Mexico and China began to implement economic policies during the 80s,
which allowed them to increase trade ties with other countries. As a result of
changes in the system of foreign trade and economic structures of each country,
a business relationship between the two countries began.

Also, China and Mexico have a lot of cultural, economic, and ethic
differences, for example China is not a member of the OECD, but it is member of
the United Nations along with Mexico. The trade relationship between China and
Mexico is focused on a few products. China mainly exports to Mexico include
electronic equipment, electronics, computers and audio and video accessories ,
mechanical equipment and accessories, toys , video games, optical and
photographic products, medical equipment and various plastic products.

China has a large variety of products to offer lower prices, which has
become a great business opportunity for large and small businesses. The other
point is that Mexican exports to China mainly depend on the auto parts represent
25 % of total exports, there followed several commodities such as copper,
minerals such as iron, steel and aluminum ( 37.4 %).
 Mexico and Japan
Mexico is at a great distance from Japan, it is now possible to save in a
short time, thanks to modern technology, and if both countries have their own
peculiarities , sometimes opposing each other , there are great similarities in
human values each village , allowing to establish a deep mutual identification
between the two countries.

Japanese and Mexican people, characterized by their artistic

sensibilities and ideals of harmony and concord to the other peoples of the world,
began their friendly friends since ancient times, whose ties have become closer
to the cultural and commercial exchange through equitable treatment and mutual
respect.

The relationship between Mexico and Japan has intensified in all areas
thanks to the deep friendship, sympathy and mutual admiration that has
traditionally existed between our peoples. Our countries share interests,
initiatives and values in the international system.

These coincidences led to the establishment of a global partnership in

which Mexico and Japan are recognized as strategic partners. In this context we
maintain an intensive political dialogue and cooperate on issues such as
disarmament and nuclear non-proliferation, environment, climate change and
human security in organizations and forums such as the United Nations (UN), the
Organization for Economic Cooperation and Development economic (OECD), the
Forum of Asia - Pacific Cooperation (APEC) and the Group of Twenty (G20).

In 2004, the signing of the Mexico - Japan Economic Partnership

Agreement (EPA) was established within the legal framework, the first
transpacific agreement for both nations and the first in Japan which included the
agricultural sector. The major food products exported to Japan are salt, pork,
avocado, frozen fish, alcoholic beverages, fruit juices and coffee.
 Prior to the signing of the North American Free Trade Agreement
(NAFTA), investment from Japan amounted between 1-6 % of total FDI in Mexico,
but after signing the agreement in 1994 there have been great advances

At the same time, both countries promote greater exchange in science

and technology, as well as between universities and students. Increasingly,
tourism becomes an important vehicle to bring our people even more. Note that
our societies have been deeply solidarity in difficult times derived from the
ravages of nature.
Conclusions

While the list of countries with which Mexico has economic relations
have increased and diversified, it is also true that the amplitude of the list does
not reflect a significant increase in the relative importance of other countries.
Trade with the outside of Mexico are concentrated in a handful of nations.
I can conclude that we must consider many factors if we eventually
internationalize and globalize. The purchasing power of business plays a vital
role in decision making, knowing beforehand demographics, political and
governmental system of the host country depends on the success or failure of
your business. The feasibility studies or analyzes are critical and strategic
alliances with different countries taking advantage of globalization , are a good
choice to bring down many barriers to entry, in addition to the knowledge of it will
grant a competitive advantage.