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Mexico and Emerging Market

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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 approximately 25% lower than that of the U.S.” Mexico boasts “an attractive business climate, legal certainty, one of the largest free-trade agreements networks in the world, and highly developed industry groups” (Kohli, 2014). Cave, 2014, lists many other advantages of doing business in Mexico. Some of these advantages include cheaper labor costs, relatively short travel times to and from the

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