preview

Issues In Mexico Essay

Decent Essays
emerges in the world. “Mexico has a $1.26 trillion economy, making it the 13th largest economy in the world, and the 11th taking into account power purchasing parity” (Wikipedia). Mexico is a great trader with the United States as it shares borders, culture, money being sent from immigrants to their families, and its heavily exportation of oil to our nation. Yet, there are many other countries that are willing to make investments with Mexico, looking for opportunity to grow for themselves. Although Mexico has been showing to be one of the largest growing nations it has also faced and is still facing today economic issues. “In spite of its growth, there are enormous gaps in Mexico that remain between the urban and the rural population, the…show more content…
Mexico is currently our 3rd largest goods trading partner recorded in 2016. Goods exports totaled $231.0 billion; goods imports totaled $294.2 billion. The U.S. goods trade deficit with Mexico was $63.2 billion in 2016” (Office of the U.S Trade Representative). Thanks to its membership of the North American Free Trade Association known as NAFTA, Mexico has been able to become one of the United States’ largest trade partners. It exports mostly manufactured goods, industrial goods, and automobiles. It has a positive trade balance with the United States, and consequently, it has become one of the largest holders of U.S. treasury bonds. In addition, Mexico produces about 200 products with revealed comparative advantage, meaning that its share of global exports is larger than what would be expected from the size of its export economy and from the size of a product’s global market.
One thing that Mexico has always had has been corruption. Social inequality plays an important role on it. Referring to dishonesty and an inability or unwillingness to seriously take on the drug cartels. Corruption has caused Mexico a big hit within its GDP when it came to 2014 because of government corruption. One issue that Mexico has is that competition in the business sector is making itself less competitive within the world market because they’re known to pay briberies to obtain certain licenses to keep them in business. Another
Get Access