Business 1

UNIVERSIDAD AUTÓNOMA DE NUEVOLEÓN

FACULTAD DE CONTADURIA PÚBLICA Y

ADMINISTRACIÓN

LICENCIADO EN NEGOCIOS

INTERNACIONALES

Business

Chapter #7 Foregin Direct Investment

Prof. José Trinidad Olague de la Cruz

Student: Team No. 9

ID:

Group: 1AI

Room: 6131AI

CD UNIVERSITARIA DE NUEVO LEÓN, .A 6 DE AGOSTO DE 2009

Chapter 7 Foreign Direct Investment

Currentlythere exist on going debate about Mexico oil industry to FDI, wich since 1938, has been a monopoly in the hands of Mexican government

• Describe the current Mexican competitive position in the world’s oil market.

From the beginnings of the petroleum activity in Mexico in the first years of last century, and until 1921, the production showed an increasing trend, with what we manage to occupythe second place as producers of oil in the world. To the above mentioned stage itfollowed a period of of low investment and the consistent decline. 1938 I mark a parteaguas, not only for the expropriation, but also because Poza Rica coincided with the discovery and development of the field, that returned the route of growth to us.

In the decades of the fifties and sixties, the importanteconomic growth that experienced the country pressed the internal offer of oil for what we stop being self-sufficient, turning into importers of oil. But in the decade of the seventies, with the discovery of the big deposits mesozoicos of the south-east, we recover our exporting position of oil, situation that we have supported during the last 37 years, very different from that of the petriliferousproducts, which we have had to matter in an increasing way during the last decade. Throughout the 20th century and what goes of 21 we have spent of being exporters to being importers and again exporters of crude oil, but importers of derivative products. Today the production of oil has declined, because we did not re-put that would have to replace Cantarell's production, at the time that wecontinue exporting crude oil, which generates currencies, but we matter petriliferous, which consumes currencies.

• Identify who are the main stake holders in this debate their proposals and the political ideology behind each if them.

The major exporters of oil are the producing countries are USA, Mexico, Russia and Norway, besides the OPEP.

From the beginning of the exploitation andmarketing of the oil 4 phases are distinguished. Both first ones are characterized because the one who was controlling the production and the price of the oil they were the " seven sisters " or seven multinationals of the oil. This oil was cheap, the lens was to eliminate to other sources of energy. 3 and 4 phase goes from 1973 up to today distributed of the following form: 3 from 70 up to 83, 4 of83 up to today.

1st Phase: 1859-1945, the beginning of the exploitation of the oil begins in the USA, in Pennsylvanian. In 1928 it that begins the exploitation in Middle East and in 1928 there is created the cartel of the oil, seven big exporting companies of oil, called also " seven sisters ", they create the cartel, which lens is the market to be distributed and to fix a common price of theoil to avoid the competition. This price is always to the fall to eliminate other sources of energy. A cartel is an association of undertakings that they dedicate to the same thing.

2nd Phase: 1945-1973. The producing countries demand major participation in the benefits. In 1960 the OPEP is created., it that was founded to initiative of Venezuela, sedate her they have it in Vienna. His lens wasto put purpose to the fall of the prices of the oil and to coordinate the politics policy of the exporting countries as for production and price.

3rd Phase: 1973-83. among 2 and 3 phase begins what is known by the name of the crisis of the oil from 1973, the world economy suffers the major crisis known from 1929: inflation, unemployment ... etc. The reasons of the crisis it is the rapid...