Globalization and Its Effects on Mexico

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Globalization and its Effect on Mexico Mexico has the size and assets which could contribute to wealth and prosperity within their borders. The nation has the second longest border with the United States, significant oil resources, and the 11th largest population in the world. Mexico underwent all the necessary free market changes to help support globalization despite initial resistance, but they are yet to complete the interior microeconomic makeover they drastically need. Mexico has many things working for them but continue to underperform when it comes to global power and economy, China out performs Mexico for low-cost manufactured goods and India is often the target for outsourcing jobs and services over Mexico (Biggs, Shiess).…show more content…
Mexico is greatly reliant on their petroleum exports; this has been called the Resource Curse by many experts. The problem lies in that when they started to nationalize their oil resources, they needed foreign investment to refine petroleum into oil as they lacked the local funds to do so themselves. This results in some economic benefits due to other countries purchasing crude oil for themselves, but the process remains to be quite draining on what could be the road to economic prosperity. Mexico needs to mine the crude oil, export it to outside nations where they can refine it and then re-import it as gasoline. (Biggs, Shiess) The biggest problem that their fossil fuel dependence will bring upon Mexico is that the country is relying on the industry, and because demand and prices are high Mexico has no reason to start new industries. Oil is a fossil fuel and resources are diminishing, and when they are gone Mexico will not be in even rougher shape than they are currently. Mexico is at the crossroads when it comes to their economy and what direction those in power want to take the country in. As of right now the globalization efforts have helped the Mexican economy but due to lack of funds and a change in political scenery at the same time Mexico was unable to fully capitalize on the free market. They may have helped their trading relationships with outside countries, but not enough was done
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