Cross-border business challenges: an ethnographic study of small U.S. and Mexican firms

Abstract

This study explores the cultural differences in Mexican and U.S. business behaviors and the challenges to successful U.S.-Mexico trade relations among small firms. The differences and challenges identified through interviews and participant-observation of 35 firms in Me)Mexico and the U.S. are compared to cultural conceptual frameworks proposed by two scholars. The data collected provided support for two of the four frameworks. The findings also revealed that the primary challenge to cross border business today is the Mexican economic recession. In response to Mexicos economic downturn, precipitated by NAFRA and the devaluation of the peso, Me)Mexican firms have developed several adaptations in their business behaviors. Other challenges identified are cultural in nature, including differences in business customs and differences in communication styles.