Institutional and Cultural Implications of Mexican SMEs Internalization

Institutional and Cultural Implications of Mexican SMEs Internalization

José G. Vargas-Hernández (University of Guadalajara, Mexico)
DOI: 10.4018/978-1-5225-1913-3.ch055
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Abstract

The aim of this chapter is to analyze from the perspective of institutionalism if the European Union market is a potential market for the internationalization of Mexican SMEs. This chapter identifies a framework of the current situation of Mexican SMEs, encompassing as the political-economic aspects that govern the cooperative relationship as the normative and cultural factors that impact directly businesses, concluding that the complexity of the European Union resulting from the uniqueness of each of its members is reflected in a set of formal and informal rules that negatively impact on the internationalization of Mexican SMEs to that market.
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Background Of The Problem

Globalization is a dynamic and interdependence process that has erased national borders and has challenged the economic, political, social, technological and cultural development. The International Monetary Fund (IMF) (FMI, 1997) defines globalization as the accelerating global integration of economies through trade, production, financial flows, technology diffusion, information networks and cultural flows. It is obvious that the globalization process has transformed the world, and it has impacted heavily on the field of business changing the rules and generating the tone for the creation of new strategies. Faced with the opening of international markets, countries have developed international trade agreements that allow them to appear in the global economic game. Mexico in 1986 entered the GATT (General Agreement on Tariffs and Trade) and later held the North America Free Trade agreement (NAFTA), with the governments of the United States of America and Canada, which came into force in January 1994, with the purpose to promote trade and to achieve economic growth, and thereafter Mexico has increased and strengthened trade relations.

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