...2/11/2013 Drugs cartels in Mexico are hurting the economy of the country bringing down tourism as a big financial factor for Mexican economy. In 2006 president Felipe Calderon began military actions against cartels and since then in 2012 47,515 people were reported killed in drug related violence. (Gonzalez) With that kind of statistics people do not want to visit Mexico. Such a beautiful country with a lot of history is occupied with corruption, poverty, red tape and monopolies (Maung ). In 2007 avarage of nine or ten people killed each day and in 2012 the number grew to 51 people per day. Economy is growing at impressive rate at the moment but the cartels are slowing Mexican economy down. War between the military and powerful criminal cartels cost a lot of money to the government. Poverty is a big problem in Mexico that the war against cartels making worst by demolishing cities and killing what not innocent people (Maung). Mexicans War is more than a war it is a humanitarian crisis affecting cities, streets families and up growing children. The percent of federal crimes made by women rose to 400% since 2007 (Schwartz). Obviously the new tactic to go to war with cartels hurt Mexican stability of living. Corruption made it unbearable for people to live. Too many cops close their eyes on drug trafficking or a murder because of the drug issues. Corruption buys police, fear does everything else. Economy is hurt because of corruption, overuse of power by officials...
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... Although there is a notable income disparity with the United States, Mexico’s per capita GDP is relatively high by global standards and falls within the World Bank’s upper-middle income category. Mexico’s economy relies heavily on the United States as an export market. Exports accounted for 32% of Mexico’s GDP in 2011 and over 80% of Mexico’s exports are headed to the United States. (Villarreal 2012) Up until the 1980’s Mexico followed strict protectionist policies to protect their domestic industries from being overwhelmed by unfair competition of other countries. As expected, the protectionist policies worked in the short run but after decades of this policy Mexico suffered a tremendous economic collapse. Many of the industries that Mexico was trying to protect became less competitive in the marketplace. This collapse started the framework for the North American Free Trade Agreement (NAFTA) that ultimately went into effect in 1994. Gauging the effect that NAFTA had on the U.S economy is difficult. Positively or negatively Mexico’s trade with the United States is only 2% of U.S GDP. Thus, changes to trade agreements with Mexico would not significantly affect the U.S economy as a whole. Economists will debate the effect that NAFTA had on the Mexican economy. Some will argue that NAFTA benefited Mexico while others claim that NAFTA had a very small effect if any. What...
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...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 Peña Nieto’s new government – and between opposing Mexican leaders who are better known for fighting among themselves than embracing each other on national television (2013: 3).” This passage very appropriately highlights both the political ecology of Mexico before the most recent election and the spirit of the political economy after it. Not the least of the hope for Mexico from both parties...
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...1010-017 3 December 2012 Well-constructed title page! Kountz i Outline Thesis statement: Many people argue that marijuana is a mind-altering, dangerous 22, and should remain illegal. This hasty generalization is not correct. Marijuana has many beneficial attributes,18 therefore28 it should be legalized. Marijuana used for health benefits. The applications of Marijuana. Marijuana as a stress reliever. Marijuana increase sick patients appetite. Medical marijuana can improve patients quality of life. Marijuana allows patients to maintain nutrition Marijuanas impact on the United States Economy. If marijuana is legalized it will help stimulate our economy. 1. Legal marijuana will make more business opportunities. 2. Legalizing marijuana will create new jobs. B. Legalizing marijuana would help decrease national debt. 1. Federal government can tax marijuana at a high rate. 2. The federal government can use marijuana tax to go against debt. III. America funds Mexican drug cartels. America pays top dollar for Mexican marijuana. Kountz ii Mexican drug cartels smuggle drugs across the border. American money funds Cartels. Cartels are violent Cartels kill many innocent people. B. America should legalize marijuana nation-wide. 1. Legalizing marijuana would help our economy and patients. 2...
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...Individual Assignment – Export of Food Products to Mexico Rishabh Passwala – 300685892 Global Business Management Centennial College Professor James Macdonald International Enterprenueship 12/10/2012 Abstract Any export activity and its multiplier effect on the economies of the both the country – host and guest country, is the result of the globalisation of the economies activities of the world. However, it will never easy for any company to enter into the market of any other country with the mindset of providing same kinds of products with the same features that have been provided in their host country. Because the culture, economy, legal considerations, political and social factors of the host country may be different than their own country. These are the factors that will determine the extent of the success and its impact on the economy of the host country. So it is the test of the entrepreneur to decide to go to which country and to decide how to go to that country with the different product mix. So it will highly influence the domestic people of the host country and make the company competitive. Keywords: Multiplier Effect, Globalisation, factors affecting Macro Environment Introduction: Canada is known for their highly quality food products worldwide. The Canadian food industry ranges from the farming to the retailing and assembling and includes most of the well- known products that are considered rich in health. The NAFTA agreement between the three...
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...The foreign currency chosen in the comparison against the U.S. Dollar is Mexican Peso (MXN). Introduction Mexico maintained a fixed exchange system of Peso to Dollar, since 1954. Mexico continued the use of such system even after collapse of Bretton Woods system in 1971 and world price shock in 1973. But due to escalating accumulated foreign debt, high inflation, large capital flight, and consequences of import substitution policy, the Peso has lost its value in 1976. After exploring with two rates – preferential rate and free market rate, Mexico established a floating rate policy in 1994. (Source: cuhk.edu.hk, 2013) In this new system, exchange rate is dictated by forces of demand and supply. The New system allows for little or no government involvement in fixing exchange rate. The exchange rate is impacted by macroeconomic aspects such as inflation, interest rate, GDP growth rate, budget deficit, general business environment, political stability etc. Mexico is one of the rapidly developing economies who has been able to keep inflation rates low. In 2012, average rate of inflation was just 3.6%, which is low as compared to other emerging markets. Real GDP growth in 2012 was 4%. Towards the end of 2012, Mexico had foreign currency and hold reserve of $163.6 billion, which was 18th highest in world. (CIA World Factbook, 2013). Foreign investment has played an important part on Mexico’s growing economy. The study of MXN against USD for a period of 5 years (year 2006 to year...
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...POLITICAL SCENE * A context of modernizing elements facing deep-seated conservative interests has been the basis of Mexican politics since Independence and remains so today. Within that context certain trends have appeared 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 (the key foreign element in modern Mexican life); and the persistence of regional issues of great influence on national progress. * The most important trend in recent years, and one seemingly well set to continue, is the anchoring of democracy in Mexico. While Mexico has been a formal democracy since Independence, in reality the nation has been plagued by essentially a series of caudillos, representatives of local and regional power arrangements that have been successful at reaching national levels. * As the PRI’s dominance waned in the wake of growing calls for real democracy and an opening of the nation to the world in the 1970s, eighties and nineties, there was a true awakening of democratic forces in the country. New political forces such as the PAN (Partido Acción Nacional or National Action Party – centre-right) and the PDR (Partido de la Revolución Democrática or Party of the Democratic Revolution – centre-left) increasingly challenged the PRI and eventually, in 2000, this led to the electoral victory of the PAN under President Vicente Fox...
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...100853121 Executive Summary: Mexico is located in North America with a population total of 113,423,000 people (University Michigan State 1994 - 2012). It borders 3 countries: Guatemala, Belize and the world economic super power, the United States of America. It has the second greatest economy in Latin America and is a major exporter and refiner of oil. Mexico is currently experiencing growth in its economic factors such as GDP, labor productivity and its exports of goods and services; however, due to the current political instability and the extremely high amount of drug trafficking and the associated violence, it is not recommended to proceed. A lack of an ability to implement laws leads to a lack of solid property rights and enforcement of contracts, which ultimately leads to a loss of business. Country’s Macro Environment: Some of Mexico’s most critical industries include agriculture, which is in the decline (3.9% of GDP in 2006 down from 7% in 1980) and electronics, which is experiencing an upsurge (Central Intelligence Agency 2012). Furthermore Mexico is the 6th largest oil producer in the world and so has a strong performance in the energy and mineral resource industry. Lastly Mexico is involved heavily in services such as tourism (it is the 8th most visited country in the world) and finance (World Tourism Organization 2012). Mexico is the second largest supplier of electronic parts to the US market (exported $71.4 billion worth in 2010, an increase of 20% from 2009)...
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...Mexico: An Emerging Market Country Mexico has one of those economies that many people tend to overlook and undervalue. I am unsure as to why many take Mexico out of the equation when looking at the world market investment and business options, however, in my opinion, Mexico is a strong emerging market country. Perhaps many Americans are frightened of sending their investment money into the Mexican economy because of the negative press Mexico is always getting. Not more than a month or two seems to go by without some mention of a drug cartel, violence, border enforcement, or poverty. The purpose of this paper is to discuss the positive and negative aspects of an American company doing business in Mexico, to discuss Mexico’s laws and government stability, and finally to discuss Mexico’s gross domestic product (GDP) and other elements that involve Mexico’s market economy. Rowland, 2012, lists some of the concerns most business owners would have when doing business in Mexico. Fear of corruption and violence likely top the list, both of which seem to be problematic in the country. Some American businesses may also dislike the idea of bringing jobs from the United States into Mexico. However, looking past these top concerns gives one a huge glimpse into the possibility of growth and investment to be had within the Mexican economy. Cost alone is a huge motivating factor when deciding on whether or not to do business in Mexico. Kohli, 2014, states “Mexico’s manufacturing cost is...
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...Bern University of Applied Sciences Business and Administration Drugwar of Mexico The Mexican drugwar hampers the development of the national economy Final paper for the module "Academic Methods of Working" submitted as part of the degree programme Semester Class Authors Bachelor of science Business Administration 2 2i Ardian Beqiri Kevin Leiser Thomas Zbinden 22th May 2013 Benjamin Spycher Benjamin Spycher Date of submission Supervision Responsible for the module Page 2 Contents 1. 2. Introduction .............................................................................................................. 3 Source basis ............................................................................................................. 3 2.1. Research method .................................................................................................. 3 2.2. Documentation of research .................................................................................... 3 2.3. Discussion of the source material .......................................................................... 4 2.4. Summaries ............................................................................................................ 5 2.4.1. 2.4.2. 2.4.3. The Mexican Economy After the Global Financial Crisis ............................................. 5 Inside Mexico’s Drug War ............................................................................................ 5 Drug War...
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...Contents Page 1. Executive Summary 4 2. Introduction 5 3. Findings 6 3.1 An Analysis of Mexico 6 3.2 Topshop Market Entry into Mexico 7 3.3 The Target and Positioning Strategies 8 4. The Marketing Mix 9 4. 1 Product 9 4.2 Place & Distribution 10 4.3 Pricing 12 4.4 Promotion 13 5. Conclusion 14 6. Appendices 15 7. Bibliography 19 1. Executive Summary This report is to investigate Topshop, a women’s apparel and accessories retailer based in the United Kingdom and to assess potential market opportunity in Mexico. Areas include, * An analysis of Mexico * Topshop market entry in to Mexico * The targeting and positioning strategies * The Marketing Mix: Product, place & distribution, pricing and promotion. The main finding and recommendations from the analysis of these main areas include, * Mexico has a large, young, growing population * There is a high level of poverty and low level of education * Government policies support FDI * There is a competitive retail environment in Mexico * Mexico’s infrastructure is poor but improving and is high on the political agenda * Topshop has recently sold 25% stake of the Topshop and Topman chain, making them debt free and open to investing in global expansion * There is a growing middle class * The target demographic is middle class females between the ages of 15-34 ...
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...General History of Mexico Mexico foundation starts in the year 900 B.C. with the migration of the Mexica from Aztlan tribe, towards the center of Mexico. When the Mexica tribe arrived, where now stands Mexico City, they found an eagle holding a serpent between its claws on a cactus. The Mexica thought this was a message from their god Huitzilopochtli (sun god) telling them that there was their sacred land. Pre-Hispanic Cultures Before the Mexica arrived to the center of Mexico and Central America, many pre-Hispanic cultures were developed, sharing their traditions and culture. When we talk about Mesoamerica, it refers to cultures that existed before the European conquest in the territories that are now Mexico, Guatemala, Belize, Honduras, El Salvador, Nicaragua and Costa Rica. In Mesoamerica grew and faded many cultures, some of the most important were the Olmec, Zapotec, Maya and Aztec. These cultures had their own art, architecture and religion, most of these cultures were conquered by other cultures and therefore there was a mixture developing and forming a new and enriched culture. These cultures lived on the Pre-classic, Classic and Post classic which is division in periods of the pre-Hispanic period, some of these cultures lived for over a period, others just lived through one. The Conquest of Mexico and the Creation of New Spain In 1492 Christopher Columbus arrived in Cuba and thought that they were in the Indies (today India). Almost thirty years later...
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...Country Profile: Mexico Jacey Bennett 20121061 International Business Management MGMT3607 Dr. Dannie Brown Tuesday November 20, 2012 Country Profile: Mexico Mexico is a North American country located south of the United States, north Belize and Guatemala, east of the Gulf of Mexico and west of the North Pacific Ocean. Three main industries in Mexico are mining, manufacturing and tourism. (Encyclopedia of Nations, n.d.) Mexico ranks 14 in the world for its land/water area of 1,964,375 sq km. Natural disasters that may occur in Mexico are earthquakes, volcanos and tsunamis. Mexico’s climate varies from desert to tropical. (CIA, The World Factbook: Mexico, n.d.) The two peninsulas of the country illustrate the changes in the climate from one side of the country to the other. The Baja peninsula is desert like with temperatures reaching 100ºF and above, whereas the Yucatan peninsula is tropical and wet. The Yucatan peninsula contains rainforests and white sand beaches. (World Travel Destinations, Culture and History Guide, n.d.) In recent years, Mexico has rapidly developed its tourism sector, the Yucatan peninsula has grown very quickly. Tourism is the fourth largest source of currency income in the country. (Country Profile: Mexico/economies, n.d) The country’s capital city is Mexico City. The primary language spoken is Spanish but there are an estimated 62 other indigenous languages. Most of the population is Roman Catholic. Mexico is a federal democratic...
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... macro economy is made up of a plethora of highly involved processes. I am going to attempt to explain some simple terms and concepts focused on international trade and foreign exchange rates. Foreign Exchange Rates One needs to have a base level understanding of what defines an exchange rate. According to Investopedia, a foreign exchange rate is “The price of one country's currency expressed in another country's currency. In other words, the rate at which one currency can be exchanged for another.”(Investopedia, 2012) The process by which foreign exchange rates are determined is really not any different than any other market function. The supply and demand for different goods determine what their prices are. In this case, substitute currencies for goods. Let us take the case of one foreign currency to understand how this market works. The dollar-rupee exchange rates will depend on how the demand-supply balance moves. When the demand for dollars in India rises and supply does not rise correspondingly, each dollar will cost more rupees to buy. A foreign exchange rate understanding will help one to comprehend how trade between the US and foreign countries affects the GDP. International Trade and GDP First of all, Gross Domestic Product (GDP) is the representation of the total dollar value of all goods and services produced over a specific time period (Investopedia, 2012) This is the actual “size” of the economy. The easiest...
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...with Mexican growers. This agreement set a minimum price that Mexican tomatoes could enter the U.S. market. But Mexico warned the U.S. that they would retaliate. They declared that the Obama administration was just trying to calm the Florida growers because they are an important state in regards to his reelection. The Mexicans argument is that they are being attacked because they have a better product than Florida producers do. They invested a lot into new greenhouses, growing new types of tomatoes, and in complicated agricultural methods in order to increase the quality and productivity of their tomatoes. Mexico’s tomatoes are also vine-ripened, which is much better than the tomatoes grown in Florida. In Florida, they are picked while still green and gassed with ethylene in order for them to become red. Many commodity producers and stores, such as Walmart , are afraid that prices will need to be raised and other products would get caught up in the trade war. This would be quite disastrous and in the end, nobody would win. Since the 1996 agreement, Florida tomato sales dropped from $500 million to $250 million per year. That is half of their profit gone, which is why it is in the interests of the Florida tomato producers to have the agreement revoked. The price of Mexican tomatoes are so low that American tomato growers state that they can barely keep up with that sort of price competition. While the Floridian company is having their little crisis, the economy...
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