International Business Management

Joby Chen - Eric Shih - Pauline Klieber - Caroline Himadewi Santoso - Chang-Lien Ch

Economic History Timeline

[1]

Economic History Timeline

[1]

Economic History Timeline

Economic History GDP

[1]

Economic History GDP

[1]

GDP annual growth rate - in percentages

Year Mexico 1991 4.2 1992 3.6 1993 2.0 1994 4.4 1995 -6.2 1996 5.2 1997 6.8 1998 4.9 1999 3.9 2000 6.6 2001 -0.2 2002 0.8 2003 1.7 2004 4.0 2005 3.2 2006 4.9 2007 3.3 2008 1.5 2009 -6.5 World 1.0 1.3 1.2 3.0 2.9 3.2 3.5 2.1 3.2 4.3 1.6 2.0 2.7 4.0 3.4 3.9 3.9 1.8 -2.0

n.a.: non-available Source: CEI based on national sources and IMF.

Economic History GDP

[1]

Financial crisis in 1982

[2]

1.Oil problem 2.Neglect agricultural 3.Expand the money supply 3.International interest rate increase Finally, the GDP fell from average 6.7 to average 1 by the end of the 1982. Its also one of the most seious economy crisis in Mexicos history.

Mexican peso crisis in 1994

[3]

Political Instability : Assassination of Donaldo Colosio, the president candidate of PRI. Armed rebellion in Chiapas region. kidnapping of numerous executives and another assassination of a PRI leader heightened the political tension Instability made foreign investors worry.

Mexican peso crisis in 1994

Fixed Exchange Rate (Under Carlos Salinas government)

Mexican government maintain a fixed exchange rate between peso and dollar to ensure the foreign investor and to fight against inflation by using foreign exchange reserve. Result in over-estimation on value of peso and increase in import. Current Account Deficit increase from 4.1 billion in 1989 to 28.9 billion in1994.

Mexican peso crisis in 1994

Run out of dollar reserve and had to devaluate peso by 15% on December 1994. Which alarmed the investor and triggered a run on the currency (Sell peso, buy dollar). A vicious cycle that further decrease Mexicos Foreign exchange reserves. Eventually peso devalued by 42.17% on the third day of depreciation announcement US provided loans and guarantees to Mexico totaled almost $50 billion

Economic Strategy

Join NAFTA 1994 Partnership with EU in 2000 "EU-Mexico Economic Partnership, Political Coordination and Cooperation Agreement Join OECD in 1994 Organization for Economic Co-operation and Development

NAFTA (North American Free Trade Agreement)

[4]

Membership: Mexico, U.S. ,Canada Goal: To eliminate barriers to trade between Mexico, U.S. ,and Canada. Agriculture: A controversial issue within NAFTA. Influence on Mexico Farmer: The farmer in Mexico against the U.S. government subsidies to the corn sector.

EU-Mexico Economic Partnership

[5]

Political Coordination and Cooperation Agreement Social cohesion, to reduce poverty, inequality and exclusion. Strengthening of the competitiveness and deepening of the free trade area with the EU, in order to support Mexicos economic development. Education and culture, in order to strengthen and deepen the cultural links between the EU and Mexico with mutual benefit. Technological and scientific cooperation.

Mexico and the OECD

organization stimulate economic progress and world trade

[6]

Organisation for Economic Co-operation and Development : international economic 18th of May 1994

Financing the MDGs

(Millennium Development Goals) Official

development assistance (ODA) is a necessary and complementary source of finance for development

Building a global partnership for development Supporting strategic areas of progress

Economic growth and social protection Conflict and fragility Gender equality and womens empowerment : investing in woman and girls Improving health outcomes Climate change and development : finance climate changes Improving domestic resource mobilisation

Human Development Index

Country 1980 1985 1990 1995 2000 2005 2006 2007 2008 2009 2010 2011

..

Very high human development

High human development Medium human development Low human development

0.766

0.786

0.810

0.834

0.858

0.876

0.879

0.882

0.885

0.885

0.888

0.889

.. ..

0.614 0.420

0.630 0.450

0.648 0.480

0.662 0.517

0.687 0.548

0.716 0.587

0.721 0.595

0.728 0.605

0.733 0.612

0.734 0.618

0.739 0.625

0.741 0.630

.. 57

0.316 0.593

0.334 0.629

0.347 0.649

0.363 0.674

0.383 0.718

0.422 0.741

0.430 0.748

0.437 0.755

0.443 0.761

0.448 0.762

0.453 0.767

0.456 0.770

Mexico

Energy Consumption & Reserved

[7]

Mexico is a major non-OPEC oil producer, with one of the world's largest oil companies, Pemex. Mexico is one of the top three sources of U.S. oil imports. Mexicos natural gas consumption is rising primarily due to greater use of the fuel in power generation. Most of Mexicos electricity generation comes from conventional thermal sources, chiefly natural gas.

Petroleum Consumption & Reserved

Petroleum Consumption & Reserved

Natural Gas Consumption & Reserved

Natural Gas Consumption & Reserved

Electricity Consumption

Coal Consumption & Reserved

Coal Consumption & Reserved

Can Mexico become richer?

3 economic pillars : oil production ( 10th largest producer), industrial sector (new technologies, automobile industry, heavy industry and agribusiness) , tertiary sector (Tourism)

Tourism : 2010: 10th place in the world, with 22.4 million visitors plans to climb the 5th step of the podium. 2011: 190 million tourists

Head of the G20 in November 2011

Barack Obama wants number of illegal immigrants in USA to go down help with economic development of Mexico
Last 10 years reduced public debt under non-PRI party (starting from 2000) : the most touched by 2009 crisis 14th biggest economy in the world (2nd after Brazil in Latin America) 2012 : 1st exporter in Latin America, 40% of the total traffic Part of OECD, NAFTA and partnership with UE

References
1.
2.

(not in alphabetical order)

Santaella, Julio. December 1998. Economic Growth in Mexico. Viewed on October,3rd 2012. Retrieved from http://www.iadb.org/regions/re2/santafin.pdf.
Wikipedia http://en.wikipedia.org/wiki/Economic_history_of_Mexico#1982_crisis_and_recovery
MBALIB http://wiki.mbalib.com/zhtw/%E5%A2%A8%E8%A5%BF%E5%93%A5%E9%87%91%E8%9E%8D%E5%8D%B1 %E6%9C%BA http://www.imf.org/external/pubs/ft/fandd/2005/12/schipke.htm
http://eeas.europa.eu/mexico/csp/07_13_en.pdf
http://www.oecd.org/mexico/mexicoandtheoecd.htm http://www.eia.gov/countries/country-data.cfm?fips=MX

3.

4.
5.
6. 7.

8.

http://lecercle.lesechos.fr/economie-societe/international/ameriques/221139689/mexiquefutur-grand-meconnu

9. 10. 11. 12.

http://www.revemexicain.com/economie_mexique.php
http://www.nationsencyclopedia.com/Americas/Mexico-ECONOMIC-DEVELOPMENT.html http://www.economywatch.com/economic-development/mexico.html http://www.diplomatie.gouv.fr/fr/pays-zones-geo/mexique/presentation-du-mexique/

Thank you for your attention !