Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Mexico Expansion
Mexico
Macroeconomic Prospects for Investment
Mexico represents an ideal target for production expansion for many reasons. The country has both low unemployment and low inflation which provides a foundation of stability in the workforce. Furthermore, the free trade agreements such as NAFTA with the North American countries allows firms to import and export goods and services with relative ease compared to other countries without such agreements. However, at the same time there are also many challenges to be found in the Mexican business environment. For example, there is a lot of corruption in many companies and among many public officials. There are also many social issues that arise from high rates of inequality in the country as well a project labor shortage to meet future demand for labor. This analysis will provide a brief overview of the business opportunities that can be currently found in Mexico.
Contents
Executive Summary
A. Strengths
B. Macroeconomic summary 4
C. Risks 4
2. Macroeconomic Variables 5
A. GDP 5
B. Trade Balance 7
C. Business Confidence Index 9
D. Monetary and Fiscal Policies 9
E. Lending and Currency Exchange 10
F. Employment and Wages 11
3. The Long View - Question of Sustainable Prosperity 12
4. Conclusion 13
Works Cited 14
A. Strengths:
Low inflation & Low unemployment
Stable currency
Free Trade Agreements
Low Debt to GDP ratio
B. Macroeconomic summary
Economic Indicators
2013 Data
Trend
GDP Growth Rate
1.1%
Slowing/Stagnant
Trade Balance
-1.01 USDB
Balanced
Debt to GDP
10.3%
Slight Increase
Inflation
4%
Stable
Business...
Risks
Slow GDP growth
Corruption/Public Safety
Labor Shortage (projected)
Income Inequality
2. Macroeconomic Variables
A. GDP
Mexico GDP Constant Prices
Mexico GDP per capita PPP
Mexico GDP Annual Growth Rate
Mexico GDP Growth Rate
Mexico GDP
B. Trade Balance
Trade deficit -- imports/exports
Free Trade Agreements
Remittances from USA
C. Business Confidence Index
1. Trend 2004 -- 2014
D. Monetary and Fiscal Policies
1. Budget Deficit
1. Government Policies
E. Lending and Currency Exchange
1. Floating Exchange Rate
F. Employment and Wages
1. Unemployment rate
1. Quality of good jobs
1. Income per capita
3. The Long View - Question of Sustainable Prosperity
The growth of the U.S. economy beginning in the mid-1990s perplexed many economists. Most economists did not expect to see such rapid growth based on the economic factors that were present during this period (Rivlin, 2000). There were many factors that were not expected that contributed to the growth such as technological innovation and the strengthening of the dollar against many other currencies. However, at the same…
Works Cited
Jordan, J. (2000). How to Keep Growing "New Economies." Federal Reserve Bank of Cleveland, 1-4.
Rivlin, A. (2000, September 11). The Challenges of Affluence. (T. N. Economists, Interviewer)
This also implies inadequacies in fiscal sustainability, which influences investments in private sectors. The second channel happens through the level, composition and quality involved within the public investment, which shows the level at which the public investment replaces the private investments (Schmidt- Hebbel, Serven, & Solimano, 1996). The final channel regards the level of taxation on the corporate earnings and the rules applicable in depreciations. There have been arguments that fiscal policy
Amazon Web Services’ Expansion to Russia and Mexico Executive Summary While globalization has posed numerous potential opportunities and threats in the international business arena, many of these opportunities and threats are specific to individual countries (Zhuplev, 2016). Therefore, a country risk analysis becomes a crucial element to consider for companies doing business on the international scale. In this view, country risk analysis has been the subject of extensive research in recent times
An interesting trend has been registered in the service industry, especially in the field of tourism. One of the main engines of Spanish economy in the past, now tourism in this country faces fierce competition from Eastern Europe countries. The beautiful resorts in Palma del Majorca and Costa Brava must compete with low cost sea side resort, which offer similar services at incredibly low prices. Another field which needs reforms
International Lending and Financial Crises There has been remarkable growth in the gross and net external positions and international capital flows in the last two decades. This represents growth of nearly three times among industrialized or developed countries and has led to large effects on the valuation of asset price and exchange rates have also changed considerably with these countries having larger external assets and liabilities. This increase in international capital
The U.S. economy is currently downshifting. Real GDP appears to be growing nearly 2% annualized -- at most -- in the current quarter. This rate is down from 3% during the first half of 2010 (before impending downward revisions), and 4% during the second half of 2009. Weakening support from the monetary and fiscal stimulus, the fading inventory rotation in manufacturing, and the consequences from Europe's debt crisis are an
Poverty Reduction occur on a Local Scale or must it be in a Broader Scope to be Meaningful? Discuss with Reference to Specific Examples. One of the biggest issues that a host of governments and international organizations are wrestling with (i.e. The UN) is how to effectively eliminate poverty. This is because, a number of different programs have been implemented in the past that were suppose to have a dramatic