How Does Economy Affect The Mexican Economy

This report provides data on Mexico which includes the economy, geography, its society, and government. It also discusses how Mexico’s economy is becoming orientated toward manufacturing. In addition, it shows that the GDP rate is not growing. The report explores the transnational issues facing the country which are international conflicts, refugees and domestically displaced persons, and drug trafficking. This source will contribute to my final project because it provides facts on the measures I am using to determine the development of a country.

Mexico could be at the risk of dropping out of the top ten tourist destinations in the world. Total tourist visitation has decreased by 15% from 2010 to 2012 this is a huge decrease and is now affecting Mexico’s total revenue.

Mexico’s population is rising swiftly with a prediction of 135 million by the year 2051. Mexico’s agricultural output does not meet the needs of a growing populace. A majority of these families can't grow enough to feed their own families. Mexico maintains close to a steady 25% unemployment rate. But those who do work, work for very low earnings , and some families survive on money that their immigrant families send them.

"In 1994, both countries [Mexico and the United States] signed the North American Free Trade Agreement (NAFTA) which has increased their mutual trade and foreign direct investment. Between 1994 And 2005, the US-Mexico foreign direct investment flows increased substantially from 16,968 billion to $71,423 billion. By 2007, the Mexican commercial relationship with the U.S. almost tripled from $297 billion to $930 billion." [2] This mutual increase in business inherently has had an attendant growth in "the number of foreign enterprises who have situated in each country." [2] With this increase in international business and trade comes cultural shifts and increased globalization and differences in managerial functions.

Mexico is the eleventh most populated country in the world with a $2.2 trillion economy (CIA, 2017). It is also an extremely popular tourist destination for Americans and Europeans alike. Moreover, its people have had the highest average annual hours worked in the world every year for the last three years (OECD, 2017). Despite this, their unemployment rate is estimated to be 3.6% and their underemployment at 25% (CIA, 2017). I am going to expand on this country’s issues with corruption, organized crime, violence, the economy, and how I assess their future will affects us here in the United States.

Mexico is an extremely important country, as far as immigration is concerned, in the world. It has a large amount of emigrants that leave their country each year. Many of these emigrants go to the United States. This has caused the Mexican immigration issue to become very popular. After research, we have found out a lot about the country of Mexico.

Mexico is an intriguing global economy, being one of the largest economies of the globe, yet also the host of a large portion of poor people; in the country for instance, which has given the world the richest man alive (Carlos Selim), 51.3 per cent of the population live below the poverty line (Central Intelligence Agency, 2012). IN order to better understand the Mexican economy, it is useful to look at it through two distinctive lenses, namely the savings rate through the Solow model and the business cycles.

Mexico is a country located in North America. It borders the North Pacific Ocean, Gulf of Mexico, and the Caribbean Sea. Mexico has two mountain ranges that are extensions of the Rocky Mountains from northern North America. Mexico has a federal republic and a free market economy where the prices of good and services are determined in a free price system. They are quite easy to do business with in the world, being 47th out of 188 countries. Mexico has a population of over 129 million people and the growth rate in 2017 is 1.27%, which is actually 50% lower than it was in 1980. With so many people being born each year, more and more areas are becoming populated, and there is no room to really grow. This was a factor of why my friend Emilio Yepez moved from Mexico. Him and his family knew that there could be a better life in the United States rather than staying and living in Mexico due to the socio-economic gap that is very wide, and the fact that rural areas are often neglected in Mexico. There is also thousands of people who die due to gang related violence. There are powerful cartels that control the drug trafficking in South America to the US. Mexico has rampant gang violence, corruption within the government and it is also a weak state with little authority. The Hofstede’s Cultural Values are very interesting to compare to the United States. The power distance in Mexico is two times better than the United States’s; however, the United States is three times greater in the

Mexico has a total of twelve free trade agreements that include 44 countries. Mexico exports an estimated $370 billion worth of products each year. Their top exporting partner is the United States who they export 70 percent of their exports to. Next is Canada who they export a mere 5.4 percent of their products to. Third on the list is Spain who they export a little over 2 percent of their exports to. Their top export is crude petroleum which totals out to over $45 billion a year, or 13 percent of their exports. Their second most export is automobiles which totals out to approximately $31 billion a year or 9 percent of their total exports. The third most exported product in Mexico is computers which come in at 5.4 percent of their total exports or approximately $19 billion. Mexico is also the top exporter of a few products such as silver, beer, and

To the eye Mexico looks like a curved horn between the United States to North Guatemala. In the horn there are two large mountain ranges. They are the Sierra Madre Occidental to the west, and to the east. These ranges run the length of the country and it just so happens to from a giant V. With most of the borders being on the coast, Mexican cuisine is seafood based. They do not have the best land everywhere “only 12 percent of the country gets enough rain for crops.” The land is very odd, in one area or region you have scorching hot deserts and in the neighboring region you have a tropical rainforest. And lets not forget about the snow capped volcanoes. I am shocked to learn that Mexico is not necessarily a poor nation. They are among the 20 richest

Based on census.gov, when US started exporting to Mexico in 1985, it was exporting exactly 13,634.7! In millions) and importing 19,131.7 (million). Currently, into thousand 15, and exports and imports croup substantially to 237,377.4 (in millions) and 294,741.1 and exports. This data shows a major increase between the 30 year trade. With Mexico and the US. Mexico and the US continue to be trading partners because of the huge beneficial investments and production sharing. Mexico already purchases more US goods than any other nation except Canada, Mexico and US partnerships don 't only focus on buying goods between one another but also in production sharing as well.

Exhibit 3 shows that Mexican GDP at PPP has had a constant growth since 2001, except for 2009 when it fell down suffering the effect of the crisis that affected the U.S. since 2008. From 2001 to 2009 the CAGR for GDP at PPP resulted around 5.5%, and after a 6.5% loss in 2009 the economy has returned to grow at around 5% annually and the GDP is expected to increase in the future at an higher rate, allowing Mexico to overcome Italy in the G20 ranking (Euromonitor International, January 2011).

economy by 2004. In the latter year the economy of Mexico grew by 3% and by the next to 4.1%.

Mexico is the top trading nation in Latin America and the ninth-largest economy in the world. No country has signed more free trade agreements – 33 in all, including the two biggest markets in the world, the US and the EU. Altogether these signatory countries make up a preferential market of over more than billion consumers. Much of the FDI in Mexico is attracted by the country’s strategic location within the North American Free Trade Agreement, which has positioned it as a springboard to the US and Canada. Other attractions are competitive production costs and a young, skilled workforce, together with political stability and an open economy.

In this mini-case we will look into 4 key aspects such as Mexico’s key economic indicators, the causes of the country’s balance of payment problems, policies in