Mexico And Globalisation

Mexico and Globalisation

Before we start to talk about this, we should all know what’s happening in the world: Practically all countries are being forced to be related with each other for theirown convenience. We can no longer say that what happens elsewhere doesn’t affect us. There are several forces driving globalisation: Trade, Culture, Transport, Politics, etc. But, with all the talksour world moving towards a globalised environment, we should ask ourselves one question: Will Mexico succeed in Globalisation?
Mexico has being doing a lot to move towards a globalised economy.Mexico is an export-oriented economy. It seriously depends on its relationship with other countries. It is now the country with the greatest number of free trade agreements. Mexico is also the biggestexporter and importer in Latin America. However there’s a serious problem: 90% of its exports and 50% of its imports are traded only with NAFTA members. This is a serious problem because this makes usdependent on the United States and Canada, so if anything happens to them, Mexico would be seriously affected because of this.
But not everything is bad, other trade agreements have increased tradewith countries involved in massive ways. For example trade with Chile increased 285%, with Costa Rica 528%, with Honduras 420% and with the European Union 105%.
NAFTA has increased specialization,competition, productivity and efficiency in Mexico. It has attracted more foreign investment. But while areas with high exposure to globalisation have benefited from it. Regions that aren’t exposed havesuffered from low salaries compared to northern states. Mexican products are no longer able to compete with the highly subsidized products in the United States, which are sometimes twice as cheap. Thismakes competition unfair, and that’s the reason why some people say that NAFTA was a big mistake for Mexico because they just raised their tariff barriers but failed to do the things needed in the...