Open AccessMexicos Resilient Cast System: Managerial Implications For Foreign Firms
Author(s) -
Rutilio Martinez,
Cris de la Torre
Publication year - 2011
Publication title -
the international business and economic research journal/the international business and economics research journal
Language(s) - English
Resource type - Journals
eISSN - 2157-9393
pISSN - 1535-0754
DOI - 10.19030/iber.v2i5.3802
Subject(s) - meritocracy , aristocracy (class) , ethnically diverse , political science , business , ethnic group , sociology , economy , politics , economics , anthropology , law
Ethnically, three groups form Mexican society: Indians, Mestizos and Creoles. The Mestizos have European and Indian ancestors, while the Creoles have an ancestry that is exclusively European. Until the advent of NAFTA, the managerial profession functioned as an aristocracy, excluded the Indians and was dominated by the Creoles. NAFTA and accompanying free market policies are, however, transforming the managerial profession into a meritocracy, thus bringing Mestizos and Indians into this profession. For foreign firms this transformation causes managerial problems such as the reluctant acceptance of executives of Indian appearance and ethnically based disparities in executives salaries.