Country study-Mexico

Presented by:Group no.6  Aashi Gupta  Disha Kothari  Madhuri Deshmukh  Poonam Bansal (37)  Santosh Linkan  Vinay Dixit (02) (17) (28)

(45) (57)

Mexico-Location

Nahuatl.9%) Birth rate: 19. Felipe de Jesús Calderón Hinojosa (PAN2006) Nature of the state Literacy rate Official language Head of government(president) . vastly different topography and peoples 91% Spanish.972.550 square km.4/1000. Density per sq km: 57 A federal system of government.3 m (average annual growth 1. Infant mortality rate: 17.2 years. & 54 indigenous languages Mr. various Mayan.8/1000. Life expectancy: 76. with 31 states & 1 Federal District Population 97.Mexico at a glance Official Name Capital Surface area United Mexican States (Estados Unidos Mexicanos) Mexico City 1.

559 billion GDP Growth % (2008) GDP Per Capita(PPP) (2008) GDP by Sectors % Foreign Trade US$ (2008) Exports Imports 1.5 Services: 69.) US$ USD 1 = MXN 13.7 billion 292.6 billion 310.2 1.1 billion .Mexico at a glance Monetary Unit 1 Peso (MXN)= 100 Centavos Exchange Rate (24.5 602.7.09) GDP (PPP) (2008 est.3 $14.200 Agriculture: 4 Industry: 26.

and is considered both a Regional power and Middle power In addition. especially the United States In recent years:  Political modernization and the anchoring of democracy  The integration into wider political and economic blocs including modifications in the historic relationship with the United States . Mexico was the 1st Latin American member of the Organization for Economic Cooperation and Development OECD (since 1994) Firmly established upper-middle income country Mexico is considered a newly industrialized country and an emerging power It has 13th largest nominal GDP & 11th largest by purchasing power parity The economy is strongly linked to those of its North American Free Trade Agreement (NAFTA) partners.Mexico at a glance          5th largest country in the Americas by total area and the 13th largest independent nation in the world It is the 11th most populous country(most populous Spanish-speaking country) Mexico has one of the world's largest economies.

Amerindian 30%. other 5% modern-day Mexican culture is deeply influenced by the Catholic Church 88%. but the population is still very young  The heart of most Mexican dishes: corn. White 9%.  Strong provincial & local cultural identities  Etiquette is strongly informed by culture of social hierarchies & distance  The growth rate has slowed. hot peppers (chiles). & beans . Protestant 6%. In the east are the Gulf of Mexico and the Bay of Campeche. Culture. And Food  Mexico is bordered by the United States to the north and Belize and Guatemala to the southeast. generally traditional. other 1%  Religions: Roman Catholic 89%.  Ethnicity/race: Mestizo (Amerindian-Spanish) 60%.Mexico at a glance Geography. Mexican people are by and large warm and vivacious individuals with an incredible zest for life.

Germany (1.1 %)  Arable land: 13%. car parts for assembly. China (13. wood products. rice. clothing. natural gas.  Industries: food and beverages. Agriculture: corn.  Natural resources: petroleum. beef.8 %). petroleum. cotton. lead. tobacco. agricultural machinery. oil and oil products. silver. poultry. copper. repair parts for motor vehicles. electrical equipment. tourism. soybeans. industry 24%. iron and steel. steel mill products. Canada (3. dairy products. wheat. beans. tomatoes. coffee.Mexico’s Import & Export Statistics(2010)  Exports ($303 billion ): manufactured goods. cotton Partners: US (80.5%). silver. agriculture 18%. Japan (4.6 %). aircraft and aircraft parts Partners: US (48%). motor vehicles. fruit. vegetables. gold.38 million. South Korea (4.4%)  Imports ($306 billion): metal working machines. consumer durables. services 58% (2009). zinc.  Labor force: 45.5 % of total exports). fruits. coffee. chemicals. Germany (4. . textiles. timber.6%). mining.

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age distribution. population growth rate. interest rates. tax policies. changes in tastes and buying patterns Technological Factors relate to the application of new inventions and ideas such as R&D activity. laws and regulations. exchange rates and inflation rate Social factors often look at the cultural aspects and include health consciousness. technology incentives and the rate of technological change Legal Factors on Mexico provides information about the legal structure. trade restrictions and tariffs Economic factors relate to changes in the wider economy such as economic growth. automation.PESTLE  Political factors include government policies relating to the      industry. business set-up procedures and the tax regime Environmental Factors provides information on . corporate laws.

Democratic And Republican  Mexican Revolution: 1910  Institutional Revolutionary Party: Started Maximato  Political modernization and the anchoring of democracy: 1970s  Political forces such as the PAN (Partido Acción Nacional or National Action Party) and the PDR (Partido de la Revolución Democrática or Party of the Democratic Revolution) challenged the PRI and eventually. this led to the electoral victory of the PAN under President Vicente Fox. .Political analysis  Government is Representative. This was the first time a non-PRI candidate had won a presidential election since 1929  North American Free Trade Agreements and their enforcement in January 1994 resulted in political stability  Connections with U. in 2000.S also helped Mexico in trade  Politics are still corrupt and scandal-ridden. with parties often focused more on individuals than on programs for action.

at 19% if oil revenues were excluded falls to 15%  Tax base is narrow. the registered individuals with the tax administration is less than 20% of the labour force . As a result. has not broaden tax base  Tax revenue collection is seriously affected by weak compliance. reflecting numerous tax exemptions and special regimes and there is a high level of informality  Oil-revenue is volatile. VAT and excise taxes on the sale of oil products to consumers would be collected even if all oil were imported  Key issues large dependency of the budget on oil revenue  Tax reform is needed to reduce distortions and increase revenue.  Mexico's tax/GDP ratio is one of the lowest in the OECD.Political analysis  Fiscal position is good. fiscal policy is heavily influenced by oil cycle  Even if Mexico stopped production of oil. oil extraction royalties. deficit has come down to around 2% of GDP. Higher tax revenue is required to provide stable financing  Lowest revenue raising capacity from VAT.

transport and textiles industries and receives over 60 % of all investment. steel and other industries. public and private Mexico established export-processing zones called MAQUILADORAS. particularly in IT     Industries Annual average growth rate in manufacturing value added has been closer to 3% Focusing Key policies. licenses. and direct government investment in key sectors State Owned Enterprises (SOEs) in petroleum. exchange rate controls. import tariffs. machinery. These sectors are linked to chemical.Political analysis  Expanded export of manufactured goods. and quotas to buffer domestic firms and enhance their technological capabilities. including major public investment in infrastructure. Maquiladoras are “in-bond” assembly factories where imports of unfinished goods enter Mexico duty-free .

Economic analysis  Mexico has the 13th largest nominal GDP and the 11th largest       by purchasing power parity A nation of middle-income status GDP annual average growth:5. a rate higher than advanced nations like South Korea or Taiwan. while the average income in rural areas just miles away was only $8. will improve the declining trade. a number of special trade committees were established.403.2% to 17.6% in the general population Income in a typical urbanized was $26. .2% The Mexican economy is expected to nearly triple by 2020 & by 2050 Mexico will have the 5th largest economy in the world Poverty has decreased from 24.654. a rate comparable to developing countries such as Russia or Turkey The EU-Mexico FTA.

Ford and Chrysler) have been operating in Mexico since the 1930s. asset prices. the increase in U. and large foreign direct investment (FDI) inflows were major factors behind Mexico’s boom in 2000. if US economy weakens . recently surpassing Canada and the U.S economy: The growth in U.S The industry produces technologically complex components and engages in some research and development activities The "Big Three" (General Motors.…  During the first three quarters of 2010. but 80% dependence is deeply disturbing. the rise in the price of oil. demand.0 billion trade deficit with Mexico In August 2010 Mexico surpassed France to became the 9th largest holder of US debt Mexico is the largest North American auto-producing nation.S.Cont. the United States had      a $46. while Volkswagen and Nissan built their plants in the 1960s Dependent on U.S.

Social Analysis  Social situation is characterised by an enormous duality  The programmes focussed on investing in human capital.2% of GDP.7% in absolute terms from 2000 Poverty: poverty and extreme poverty affect more than 50% of the population .     promoting income and employment opportunities and improving infrastructure in poor areas The National Development Plan 2001-2006 includes social policies as one of the highest priorities of the country It underlines education as the top priority for the development of the country Social development expenditure for 2001 amounts to 6. which represents a real increase of 4.

high level institutions (mainly private) have developed country standards. Even though it may seem a high percentage.good quality throughout the system. it is very limited if we consider the expenditure per student  The poor received only 1. The main challenges of the current system are:  To ensure equity on gender.2% of GDP. which is not the case for the public and lower level institutions.0% of the education budget . geographic distribution and economic level of the population.Cont.… Education and health: Part of the population enjoys services provided by high international standards hospitals. while the rest fall in a very inefficient social security system. which can not provide the minimal standards required. -During 2001. . public expenditure on education reached 6. Currently.

GMT). South Korea and Taiwan to become the largest producer of smart-phones in the world Mexico has decided to reinforce its S&T investment (US$ 1 685 million for the period 1998-2000) by requesting a loan from the World Bank for a “Knowledge and Innovation Project” . the biggest scientific project being developed     in Mexico was the construction of the Large Millimeter Telescope (Gran Telescopio Milimétrico. the world's largest and most sensitive single-aperture telescope in its frequency range The electronics industry of Mexico has grown enormously in the last decade In 2007 Mexico surpassed South Korea as the second largest manufacturer of televisions In 2008 Mexico surpassed China.Technological analysis  In recent years.

environmental and conservation services .Environmental analysis  Economic and industrial development in Mexico have subjected the environment to intense pressures. such as high pollution levels and. wood production. often unsustainable use of the natural resources  A single ministry responsible for environment was created in 1994  it is estimated that the cost of annual environmental degradation is equivalent to about 10% of GDP  National Forest Programme & “National Programme on Environment and Natural Resources 2001-2006” were established -decrease the pressure on forest resources -development of forest resources.

Legal analysis  Public security is enacted at the three levels of government. and Russia . Thailand. each of which has different prerogatives and responsibilities  Local and state police department are primarily in charge of law enforcement  The Mexican Federal Police is in charge of specialized duties  The Global Integrity Index which measures the existence and effectiveness of national anti-corruption mechanisms rated Mexico 31st behind Kenya.

over water-sharing arrangements . illegal arms transfers. narcotrafficking. illegal migration. and other elements of international crime. affected by United complexities in unusual Defence Organization  Internal Security States. trafficking in persons.S.  Threats to its internal security including dissident groups who use violence to pressure the government.Security Context  Highly complex one.  External Security  Mexico does not have any real external enemies  International disputes: with the U.

as well as for multilateral approaches together on major global issues and trends Recent Important Bilateral Agreements  Mutual Legal Assistance Treaty in Criminal Matters (2007)  Double Taxation Avoidance Agreement (2007)  Bilateral Investment Promotion and Protection Agreement (2007) for 10 year  MOU on Cooperation in the Field of New and Renewable Energy. mexico 30th may 2007 . G-15 and G-6 (nuclear disarmament) Present Mexican government considers India as one of the potential strategic partners. investment. physiognomy and people.INDIA . G-77.      cultural and family values Mexico and India worked together closely as members of the UN. & economic cooperation (2008) Both sides agreed to double bilateral trade to around $4 billion by 2010 TCS has opened software center in Guadalajara. trade. economically. Jalisco.MEXICO  Similarities in geo-climatic conditions. biodiversity.

biotechnology. engineering goods. pharmaceuticals. textiles. electrical and mechanical equipment's. Industry. minerals  Investments and Joint Ventures: Investments from India in Mexico have been around US$ 1. auto parts  Potential Areas for Bilateral Trade: Software&IT. auto parts.MEXICO  Main components of India’s export to Mexico: Engineering goods. Trade. renewable energy.5 billion  India-Mexico Business Chamber (IMBC): launched in Mexico with the objective to play a vital. iron & steel. fertilizers.INDIA . agriculture products  Main components of Mexico’s export to India: Crude oil. photographic products. chemicals and pharmaceuticals. chemicals. Tourism and Culture CIMCCITT to promote and support the business initiatives . gems & jewellery. catalytic role towards full realization of the potential of bilateral trade and economic relations through enhanced business-to-business contacts and interaction with the concerned governmental authorities  Established Chamber of India Mexico Commerce.

.if investment is still to be encouraged . U.if confidence in the state is to be sustained.democracy is to flourish.S. and other assistance can help but it is difficult .Conclusion  The country does seem to be on the road to an even more stable and less 'partial' democracy if the security and economic situations can be made to hold steady and not worsen  The government must somehow get a grip of the public security dimension of national life if .

pdf -Nora Lustig(El Colegio de Mexico)  Mexico: Current and Future Political. Ph.pdf .D(Professor Emeritus of Strategy and Latin American History)  Country strategy paper(2002-06)-Mexico. Economic and Security Trends.References  Stabilization And Adjustment Programmes And Policies.pdf -Hal Klepak.

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