...Emerging Market Economy: Mexico Introduction The success of any business will be greatly determined by the environment in which the operations are carried out. The legal, political and economic conditions of a given country are some of these determining factors, especially for emerging markets (Lassar, Haar, Montalvo and Hulser 135). Consequently, the management of any multinational corporation that intends to expand its operations into a given country must have an understanding of the economic and political factors in the country. While there are countries that have undergone industrialization and have developed markets, there are those that have not attained that state, but can be considered as emerging market economies. Mexico is one of these emerging markets given the economic stability that has been recorded since the late 1990s (Heyman 31). Mexico is a federal constitutional democracy in the continent of North America. The country contains thirty-one states and the federal district that houses the national government offices. The office of the president is currently held by Enrique Pena Nieto who came into power on December 1, 2012 as the 57th president. The country was colonized by Spain and gained her independence on September 27, 1821 after eleven years of war for independence. The Mexicans had affirmed themselves sovereign towards the end of 1810. This colonization made Spanish the most spoken language in the country and still remains at the top. Political...
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...Latin America is quite a preferable location for auto manufacturers. Countries like Brazil, Argentina and Mexico are well known for manufacturing automobiles. As a Chinese automobile company who wants to set up their operation in Latin America, several major factors must be considered while selecting the country. Some of the factors which are considered when deciding on which country to invest are as follows: A. Infrastructure: Latin America lags behind in terms of infrastructure. This is a disadvantage for Latin America since it has a negative implication on its production and foreign direct investment. The proportion of paved roads in Latin America is comparatively low. i) Brazil: Brazil, the biggest economy in Latin America is ranked 104 in 2014 according to the “Global Competitiveness Report” by the World Economic Forum. This significantly increases the set up costs for new firms. ii) Argentina: Argentina lags even further behind Brazil in terms of infrastructure according to “Global Competitiveness Report” by the World Economic Forum published in 2014. This makes Argentina unsuitable for setting up new subsidiary. iii) Mexico: Mexico is ranked 73rd in the “Global Competitiveness Report” published in 2014, by the World Economic Forum. This shows Mexico is better in terms of infrastructure than Brazil and Argentina. Hence, Mexico will be the better choice compared to the other two countries. B. Barriers to Entry: Foreign Direct Investment has increased...
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...OMIS-3350 - Report on Crop Production Vs Co2 Emission Mithun Mitra Nomula 10/15/2015 Introduction More than 3 billion people - in world population lives in rural areas. Approximately 3/4th of the people living in rural area have agriculture as their primary livelihood. For many developing countries agriculture is the important engine for economic development. Mean global temperatures have been mounting since about 1910, mainly due to the amassing of greenhouse gases in air. The main causes are the smoldering of fossil fuels (coal, oil and gas) to meet rising energy requirement, and deforestation. The process of global warming shows no signs of lessening and is expected to have a long term modifications in weather conditions. These transformations will have somber blow on food availability which is due to reduction in production. Effects are already being felt in global food markets, and are likely to be particularly momentous in explicit countryside locations where crops fail and succumb decline as Co2 Emission in the rural areas are increasing drastically. The prime purpose of this paper is to present the study on correlation between crops production and Co2 Emissions of selected countries. This is not an experimental approach as here we are just gathering the data from website and analyzing relation between Co2 Emission and crops production. Co2 Emission Crops Production is the initial notion. In this paper we are going to check whether the initial notion is true or not...
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...International Newspaper Report NAFTA, or the North American Free Trade Agreement is a trade bloc between the countries in North America, which are the United States, Canada, and Mexico. This agreement is very helpful when it comes to importing and exporting between these countries. Joining the trade agreement with the United States and Canada was a very smart decision for Mexico from a business standpoint. Mexico looks a lot better to other countries when they are trading with such great countries like the United States and Canada. The article “NAFTA: Learning to Deal with Thy Neighbor” talks about whether the North American Free Trade Agreement is working well between the countries or not. The overall emphasis of the report says that NAFTA has a positive effect on those countries involved, some more than others, but overall it is a positive thing. The leader of international affairs realized that free trade was the solution to the trade deficit, because it makes it much easier to trade between countries therefore more trading will go on between those countries. The article refers to specific sectors that are affected by such things as trade and NAFTA. The first of these sectors is economic. The fact that imports and exports of merchandise trade have rose to over $900 billion each year between the countries just goes to show that NAFTA is doing great things for the economy. The author states that this is great for the economists, but what about the manufacturers...
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...help determine the investment strategies and economies of countries engaged in FDI. North America has been the source of nearly one-half of all investment and almost three-quarters of the jobs created throughout the globe (Huggins, 442). North America is probably the most important continent when it comes to dealing with FDI. The three main countries of North America, the United States, Canada, and Mexico, all rank in the top 15 of world economies, proving them to be desirable partners in FDI transactions. The trends of FDI discussed in this report will be unparalleled to this information and can lead to some predictions on how future trends of the countries of North America will continue to be superior to that of the other continents of the world. Keywords: Foreign Direct Investment, FDI Inflow, FDI Outflow Foreign Direct Investment is investment of a company located in a different country either by buying a company in the country or expanding its business into the country. FDI can be done for many purposes. Companies may have tax incentives abroad, cheaper labor, abundant resources, target-specific markets or other reasons to enter into direct investment with a foreign country. Three components of FDI include equity capital, reinvestment earnings, and intra-company loans. These three components are the values that, if changed, will affect FDI first-hand. FDI inflows are flows of investment into the reporting country from a...
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...Country Risk and Strategic Planning Analysis Paper University of Phoenix MGT/448 Kathryn Hayman December 19, 2011 Team C has decided to conduct a country risk analysis for the country of Mexico. The selected business venture is about laptop computers. When it comes to global business ventures there also comes a great amount of risks. In the following paragraphs is an analysis of the following risks; political, legal, and regulatory risks, exchange and repatriation of funds risks, competitive risk assessment, taxation and double taxation risks, market risks, distribution and supply chain risks, physical and environmental challenges to entering and operating in a target market, social and cultural risks, and cyber or technology risks. A description of how these risks would be managed and a summary of the strategic planning process will be explained. Mexico has a moderate political risk according to AM Bests Country risk report. Mexico ties with large, developed countries that are very strong has help them in this aspect when it comes to their political risk. NAFTA North American Fair Trade Agreement also helps in this respect since it is now one of the largest free trade areas. This agreement was established between the Unites States, Canada, and Mexico and became effective on January 1, 1994. This alliance has brought economic growth and rising standards to the citizens of these three countries. There are many advantages of NAFTA, being that it has created...
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...Rotman commerce Political Risk Assessment of Foreign Investment in Mexico Siyu Li 997707209 RSM491 Mexico is a democratic country in Central America that has a reputation for being a poor and dependent country. However, its democratic title and recent political movement has inched it toward stability politically. The country is comprised primarily of two parties with several smaller ones, much like the US and other countries, including the National Action Party (NAP), a conservative group, and more moderate Institutional Revolution Party (PRI). These two powers have experienced much deadlock and turmoil in the past few presidential elections to the dismay of Mexicans, who appear to simply be interested in the progress of the country and not necessarily just one political group. This paper’s intention is to outline the political ecology of Mexican government and offer a look into the risks and rewards possible from an economic standpoint as the result. Political movement of late has primarily involved the election of President Enrique Pena Nieto, a very young and idealistic leader who has nevertheless brought the country together politically by working both sides of the aisle and offering a moderate rather than liberal viewpoint. John-Paul Rathbone writes that “What made this display of Latin cordiality so notable, though, was that it took place on the second day of President Enrique...
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...Writing Assignment The World Factbook Mexico Economy - overview: Mexico is democratic country with a capitalistic economy or free market economy. It has plenty of natural resources and developing companies primarily own by the private sector it contains a combination of modern and outmoded industry and agriculture. Current management has increase competition in railroads, electricity generation, seaports, airports, natural gas distribution and telecommunication. The distribution of the income inside the country remains unstable. Regarding the free trade agreements, Mexico has with over fifty countries including Honduras, El Salvador, Guatemala, the European Free Trade Area, and Japan putting more than 90% of trade under free agreements. In July 2012 Mexico joined the pacific alliance with Chile, Peru and Colombia. The presidents Felipe Calderon productively pass pension and fiscal reforms in 2007. As the worlds demand for exports dropped Mexico’s GDP plunged 6.22% in 2009 asset prices dropped and so do remittances and investment. In 2010 the GDP growth was positive by 5.6% with exports, particularly by the United States, Leading the way. In 2011 growth slowed to 3.9% and recover to 4%. In 2012 Mexico’s legislature passed a labor reform which was signed into law by President Felipe Calderon by November. The new pact for Mexico was signed by the new president, Enrique Pena Nieto, along with the leaders of the country's three main political parties: the Institutional Revolutionary...
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...Mexico -"Patria, Libertad, Trabajo y Cultura" -"Patria, Libertad, Trabajo y Cultura", this translates to "Country, Liberty, Work and Culture" and is the motto found on the country's official seal. Mexico is a country where opportunities are being developed. The country is located at the most southern tip of North America, and is well known around the world for its neighbors to the north, the United States. The country has a rich history of ancient pre Colombian civilizations and many distinctive cultural traditions. The Mayas, Olmec’s, and the Toltec’s all came before the great Aztec empire, who was a nation of great wealth. In 1519 thru 1521 Mexico was conquered and ruled by the Spanish conquistador Hernando Cortes. Mexico was the colonized by Spain for the next three hundred years. Mexico won their independence from Spain in 1821 after many bloody revolts and uprisings. Mexico has a population of (2010 est.) 112,468,855 (growth rate: 1.1%); birth rate: 19. /1000; infant mortality rate17.8/1000; life expectancy rate. Solar Photovoltaic Solutions is an American company based in Atlanta Georgia. The proposition of this report will be to export our industry leading solar panels into the Mexican market. This report will provide evidence that there is a business opportunity for our company to assist Mexico with viable alternative energy solutions that are being underserved...
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...their four founders. In 1896, General Electric was one of the original 12 companies listed on the then newly formed Dow Jones Industrial Average and is the only company out of the 12 to still be listed on the Dow index. GE serves the entire world with operations in more than 140 countries across the globe with over 305,000 employees globally. With products from appliances to oil, GE remains one of the top engineering manufacturing companies in the world. In fact, when looking at the manufacturing industry as a whole, GE operates in three out of five categories as shown in the illustration. This can be contributing directly to their strategic resource management and strength in their intangible assets of their organization. This paper will address GE’s intangible assets and their impacts to their alignment in strategy in four countries of operation to include the U.S., Mexico, France, and Turkey (Fact, 2013; McKinsey, 2012). Human Capital Many organizations are now reliant on human capital to ensure their continued success and commitment to achieving the organization’s missions and objectives. For GE, the diversity is what helps drive innovation and success. With operations in over 140 countries and more than 305,000 employees, it is evident in how GE values their human capital all over the world. GE continues to invest over $1 billion a year in employee training, development facilities around the world with 90% of their leaders promoted from within (Fact, 2013; Human, 2013) ...
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...INTRODUCTION The following report provides a detailed assessment of formal operational risk disclosure in relation to the vertically integrated poultry producer Pilgrim’s Pride Corporation (PPC). Overall PPC establishes fair reporting of operational risks, however, these disclosures will be evaluated based on the risk related information formally disclosed in the company’s financial statements in contrast with evaluation of risk present considering bias of company risk measurement as well as assessment of risk applicable as determined from informal and third party sources. This report will specifically analyze risk in this way in regards to market risk, supply chain risk, country risk and environmental risk applicable to and disclosed by PPC. MARKET RISK PPC experiences significant to market risk in its operations. The following analyzes this risk in regards to its three main components: competitive rivalry, segments and seasonality. Competitive Rivalry PPC recognizes competition as a significant risk to its operations in its 2012 10-K. The company notes that the market remains fairly concentrated, with the four main chicken producers accounting for over 50% of the US industry’s market share. The company also discloses that it operates as the second largest in the US with a market share of 17.4%.1 As a result PPC discloses this market concentration and competitive rivalry as significant risk factors to the company. PPC does not disclose any additional data for...
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...A03-04-0011 Delta Air Lines: The Latin America Contact Center Decision PY In early September 2000, Mary Smith, Delta Air Lines’ Regional Director of Reservations for Latin America and the Caribbean, glanced over her notes one more time. Delta had decided to consolidate all of its reservations offices in Latin America into a single Latin America Contact Center. Now it was up to her to recommend a country location for this $3–4 million investment. Gail Childs, her immediate supervisor and General Manager for International Reservations, would want her report soon in order to get the final go-ahead from Delta’s CEO. Although a number of countries were possible options, Mary reviewed again the pros and cons for Mexico, Chile, and Argentina. CO The Internationalization of Customer Service NO T By 2000, telephone customer service was growing rapidly throughout the world. Many companies chose to outsource their telephone customer service operations to outside call centers; others kept such operations in-house. Other than locating call centers, also known as contact centers, within a region to be closer to customers, the principal reason for U.S. companies to move telephone customer service outside of the United States was to reduce costs. Because labor costs constituted between 60–80% of a call center’s operating expenses,1 airlines, computer firms, credit card companies, and others that used telephone customer service extensively were moving these...
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...and Promotion Working group (former name: AMAPWG) Unique model of global co-operation Presented by: Gabi Naamani Agrexco Tel-Aviv, Israel Sept. 2011, Cairns, Australia AMAP – Unique model of global co-operation Gabi Naamani, Agrexco Tel-Aviv AMAP (former named AMAPWG) – Avocado Marketing and Promotion Working Group - is voluntary organization of Avocado producers and exporters from numerous countries that identified “Mutual interests in developing the Avocado consumption”. The main goal is to develop and extend the Avocado consumption in Europe, along with inspection on domestic markets of the members (plus other markets as well), where applications from one field can be learnt and applied in other. AMAP is a unique model with special inspiration: “Cooperation of competitors” from all over the world, with common understanding that it is much more beneficial “to act together on enlarging the cake than to fight on its slices”. This basic idea was firstly discussed at informal meeting of various exporters during the '4th World Avocado Congress' (Uruapan, Mexico 1999), where it was agreed to meet once a year and to modify numerous existing connections from being 'bi-lateral' to be 'multi-lateral'. Further many steps, for tightening the relationships, were taken in the past dozen years. Nowadays, there is permanent weekly data exchange. The group has twice a year meetings where many subjects are presented and discussed, like marketing, promotion, future supply programs...
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...14 December, 2013 The Impact of United States Drug Policy on Mexico and Colombia Drugs are not new to this Earth. Mankind has grown and consumed drugs for millennia. Marijuana, or more appropriately Cannabis, is indigenous to Central and South Asia, and has been consumed widely since 3000 B.C.E. (ElSohly 8). In more recent times (1938), Albert Hoffman synthesized Lysergic acid diethylamide, more commonly known as LSD, while searching for treatments for psychiatric diseases (Hoffman). Initially, many drugs were used in religious/spiritual functions. In several instances, the strong fibers of the Cannabis plant were used for building, much like jute, and the narcotic aspects of the plants were not even explored (ElSohly 8). However, today, drugs are frequently used recreationally, and as a result are highly profitable commodities. It is common knowledge that across the world, the vast majority of drugs are illegal or are restricted in some way. Almost nightly, proponents for the legalization of drugs, decriminalization of certain drugs, and the continued ban on drugs debate their positions through the media. This debate is a hot button issue that is almost entirely centered upon the views and policies of the world’s largest drug consumer, the United States of America (CIA Factbook). Governments and the media very often focus on drug consumption trends and drug flow into the United States, while largely ignoring Latin American perspectives and impacts on Latin America. Though...
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...Contenido ------------------------------------------------- 1. – Datos de la industria financiera en México 1 2.- Sector bancario 2 3.- Sector seguros y fianzas 4 4.- Casas de bolsa 5 5.- PEGs y VCs 6 6.- Noticias de M&A en la industria 7 7.- Asociaciones en la industria 13 ------------------------------------------------- Industria Financiera El sector financiero está compuesto por diferentes empresas, entre las que destacan bancos, bancos de desarrollo, casas de bolsa, el mercado de valores, compañías de seguros y fianzas, uniones de crédito, SOFOLes, SOFOMes, sociedades de inversión, banca de inversión, grupos de capital privado, venture capital, pensiones y otros servicios complementarios. La parte bancaria del sector se desenvuelve mejor en un ambiente macroeconómico de bajas tasas de interés, inflación controlada y crecimiento sostenido ya que los bancos ganan de poder obtener recursos con bajo costo y prestarlos con ganancia. Una economía fuerte es una economía que requiere créditos para la inversión y el consumo, lo que beneficia al sector bancario. Datos de la industria en México * El sector financiero representa 4.8% del PIB mexicano al cuarto trimestre del 2011, de acuerdo al INEGI. * Se cuenta con sólo una bolsa de valores, la cual contaba con una capitalización de 729B de USD al término de 2010. Es la segunda más grande de Latinoamérica después de Brasil. * De acuerdo a BBVA Research el crédito bancario es la segunda fuente...
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