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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

Infant mortality rate: 17. Life expectancy: 76. various Mayan.2 years.972. Nahuatl. Felipe de Jesús Calderón Hinojosa (PAN2006) Nature of the state Literacy rate Official language Head of government(president) . Density per sq km: 57 A federal system of government. with 31 states & 1 Federal District Population 97. & 54 indigenous languages Mr.9%) Birth rate: 19.Mexico at a glance Official Name Capital Surface area United Mexican States (Estados Unidos Mexicanos) Mexico City 1.4/1000. vastly different topography and peoples 91% Spanish.3 m (average annual growth 1.550 square km.8/1000.

5 602.200 Agriculture: 4 Industry: 26.3 $14.Mexico at a glance Monetary Unit 1 Peso (MXN)= 100 Centavos Exchange Rate (24.7 billion 292.6 billion 310.09) GDP (PPP) (2008 est.) US$ USD 1 = MXN 13.5 Services: 69.559 billion GDP Growth % (2008) GDP Per Capita(PPP) (2008) GDP by Sectors % Foreign Trade US$ (2008) Exports Imports 1.2 1.1 billion .7.

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. and is considered both a Regional power and Middle power In addition. 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. 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 .

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

tomatoes.Mexico’s Import & Export Statistics(2010)  Exports ($303 billion ): manufactured goods. agriculture 18%. Germany (4. tobacco. iron and steel.5 % of total exports). timber. Canada (3. repair parts for motor vehicles. South Korea (4. petroleum. beef. silver.  Natural resources: petroleum. clothing.5%). oil and oil products. tourism.1 %)  Arable land: 13%. agricultural machinery. Agriculture: corn. cotton Partners: US (80. silver. industry 24%. chemicals.8 %). cotton. fruits. beans. motor vehicles.  Industries: food and beverages.  Labor force: 45. coffee. mining. soybeans. services 58% (2009). gold. rice. consumer durables. electrical equipment. fruit. vegetables. Germany (1.4%)  Imports ($306 billion): metal working machines. natural gas. car parts for assembly. Japan (4. steel mill products. copper. lead. coffee.6%). aircraft and aircraft parts Partners: US (48%).6 %).38 million. poultry. . zinc. dairy products. textiles. wood products. China (13. wheat.

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

S also helped Mexico in trade  Politics are still corrupt and scandal-ridden. in 2000. with parties often focused more on individuals than on programs for action. 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.Political analysis  Government is Representative. . this led to the electoral victory of the PAN under President Vicente Fox. 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.

Higher tax revenue is required to provide stable financing  Lowest revenue raising capacity from VAT.Political analysis  Fiscal position is good. the registered individuals with the tax administration is less than 20% of the labour force . at 19% if oil revenues were excluded falls to 15%  Tax base is narrow. 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. fiscal policy is heavily influenced by oil cycle  Even if Mexico stopped production of oil.  Mexico's tax/GDP ratio is one of the lowest in the OECD. deficit has come down to around 2% of GDP. oil extraction royalties. As a result.

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

654. a rate comparable to developing countries such as Russia or Turkey The EU-Mexico FTA.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. while the average income in rural areas just miles away was only $8.2% 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 24.403. a rate higher than advanced nations like South Korea or Taiwan. .6% in the general population Income in a typical urbanized was $26.2% to 17. will improve the declining trade. a number of special trade committees were established.

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

which represents a real increase of 4.7% 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.Social Analysis  Social situation is characterised by an enormous duality  The programmes focussed on investing in human capital.2% of GDP.

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

GMT).Technological analysis  In recent years. 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 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. the biggest scientific project being developed     in Mexico was the construction of the Large Millimeter Telescope (Gran Telescopio Milimétrico.

Environmental analysis  Economic and industrial development in Mexico have subjected the environment to intense pressures. such as high pollution levels and. 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. wood production. environmental and conservation services .

Thailand. and Russia . 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.Legal analysis  Public security is enacted at the three levels of government.

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

physiognomy and people. trade.MEXICO  Similarities in geo-climatic conditions. economically. & economic cooperation (2008) Both sides agreed to double bilateral trade to around $4 billion by 2010 TCS has opened software center in Guadalajara. biodiversity.INDIA . G-77. investment. G-15 and G-6 (nuclear disarmament) Present Mexican government considers India as one of the potential strategic partners.      cultural and family values Mexico and India worked together closely as members of the UN. 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 . Jalisco.

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

if investment is still to be encouraged . U. .democracy is to flourish.S.if confidence in the state is to be sustained. 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 .

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