Análisis De México

INDEX

Introduction 2
Economic situation 2
Cultural and social characteristics 4
Legal system 7
Political situation 8
Membership in trade agreements and trade policies 10
Summary and conclusions 11
Appendix 13


INTRODUCTION


Mexico is on the border with United States of America, Belize and Guatemala. It covers an area of 1,964,375 sq. km., 1,959,248 of which are on themainland and 5,127 of which are islands. There is also an Exclusive Economic Zone of territorial Sea compounded by 3,149,920 sq. km., which means that the total area of the country is 5,114,295 sq. Km.

On this country live 107, 1 millions of persons, for this reason it is the biggest talking-Spanish nation. Besides the Spanish language numerous indigenous languages live together, all of themrecognized for the Mexican State as officials. Due to the proximity with the United States, the presence of the English language is very important, especially on the business world, for the economic activities of Mexico with the rest of the world.

Mexico is a country with a large climatic diversity. The geographic situation of the nation makes that we can find two areas very different, separated forthe Cancer Tropic. This parallel separates the country into a tropical zone and into a temperate zone. However, the relief and the presence of the oceans have a considerable influence on the configuration of the climate map of the country.

The climate has a big importance for the configuration of the culture and the habits of the people, and consequently it will affect to business and to thebehaviour of the employers and the investors.

There are some factors, which it will affect our decisions to invest on a country or another, and the most important will be the economic, political cultural and the relations with another nations. And the term report purpose is analyzing them.

Economic situation

Although the Mexican economy had a great moment between 1940 and 1970 were the annualgrowth was around the 6% lately the Mexican economy has been marked by continuous crisis. However all the policies taken had led their economy to a stable growth since 2003. As the economy secretary says[1] “[...this is a crisis that gives Mexico a great opportunity because we’ve always lived in the ‘76, ‘82, ‘96, and 2002 crisis, and we’ve always seen that crisis are generated by bad publicpolicy decisions within Mexico borders...]”.

The economic recovery was initiated in 2003 under the IMF and has proved to be successful. They had had a stable expansion and have been around the 3% inflation target so we can conclude the have demonstrated a solid growth.

In addition Mexican authorities have achieved the macroeconomic and financial stability needed to foster the economicdevelopment and to strengthen the country against all odds.

Recent reports of the IMF have undoubtedly confirmed that “Mexico has made substantial progress over the past decade in strengthening its economic framework. However, the external environment has deteriorated sharply since last year, testing Mexico's resilience and current policy framework.”[2]

Historically the Mexican economy has been tiedto USA’s economy. Around 80% of the Mexican exports are sent to the United States of America but they sent imports in return for about the 60% of the whole.

The near future of Mexico, uncertain as the rest, will go close to the US’ future although the Mexican government now wants to promote the domestic demand in order to get stronger in front of upcoming emergencies.

The long run for Mexicois believed to be stable and growth to be increasing up to the 4% but forecasts may be too positive and prudence in business is needed in these moments as a bad investment could have a too high a cost.

For over the last 7 years Mexico has achieved a very stable and solid position and is following the World’s path in GDP growth[3] for the last 3 years and it is believed to continue the trend...