Introduction
Mexico is a country in North America, located to the south of the United States (Where Is Mexico n.p). Concerning the size, it is the sixth largest country in South and North Americas. It is a populous nation with about a hundred and twenty million people, and its nominal GDP ranks the country among the top fifteen countries with the highest GDPs. The country, therefore, is among the large economies of the world. This paper will evaluate the current status of Mexico.
Status of Mexico in the world marketplace
The economy of Mexico has grown to put the country high in the world marketplace. The country is ranked among the major economies in the world with both the gross domestic product and GDP per capita being high. The GDP per capita is expected to continue growing, maybe up to 2040 (OECD 4). The country has spent the last two decades trying to promote an open economy system which in return creates an environment suitable for investment (Mexico’s Position..para 2). Many countries have signed investment agreements with Mexico, and this has further assisted in the growing of the economy.
The trade negotiations between Mexico and other countries have helped to create an economy that lasts for a long time (Mexico’s Position..para 8). These agreements create many opportunities for investments, which in return contribute to the growth of the country’s economy. For example, the country has tripled its exports since 1993 and was in 2003 ranked among the best trading nations in the world (Mexico’s Position. para 9). Currently, about 86% of exports from Mexico are manufactured products, as opposed to before 1990, when the major export was mainly oil. The country has promoted international free trade by removing barriers to trade, for example, by making most exports duty-free (OECD 16).
The Ease of Doing Business In Mexico
The ease of doing business in Mexico is higher compared to the Latin America average. It is also placed higher than a good number of European countries, China, India, Brazil, and Russia (Mexico moves 2). This means that the business environment is much more favorable in Mexico than in these countries. The business regulations have been eliminated making it easier to start and operate a business. For example, Mexico has eliminated the minimum capital required to being or start a company (Mexico moves 2).
The country has also reduced the number of days needed to install and obtain electricity, which means that businesses that require electricity can be comfortably run (Mexico moves 2). Tax-paying times are few in Mexico that in many other countries. The market is open and free, which enhances competitiveness in the various sectors of the economy (Mexico moves 2). A good and facilitated environment has been established in Mexico, and this is because of the policies that the government has put in place.
Other Countries Want to Invest in Mexico
With the ease to do business being very high in Mexico, a good number of countries have developed an interest to invest in the country. Foreign direct investment in Mexico has increased tremendously since 1994 (Pacheco‐López 1158). This is partly because of the government’s policy to reduce barriers to investment, which has resulted in a good number of multinational corporations investing in the country (Pacheco‐López 1158). The environment for investment has been enabled by the Mexican government, and this has attracted foreign direct investment from international companies belonging to different countries.
U.S. is a major source of foreign direct investment in Mexico (Pacheco‐López 1158). Countries in the European Union also form a good part of the countries that invested in Mexico (Pacheco‐López 1158). In fact, Denmark and Mexico have treaties that were made to facilitate investment between the two countries. Other countries in the world have also shown interest to invest in or have already invested in Mexico (Pacheco‐López 1158). Direct investment by foreigners has assisted largely the economic growth of Mexico.
Future of Mexico in the World Marketplace
Mexico is a growing economy and is expected to remain at the top of the world marketplace along with other major economies. The U.S and the European Union form a bigger percentage of Mexico’s foreign domestic investment (Villarreal 3). These being among the large and growing economies in the world, then the future of Mexico in the world market place remains optimistic. Again, Mexico has entered into several trade agreements with different countries, and this would keep the economy growing (Villarreal 3).
Mexico has diversified its economy with major industries being primary areas for investment. Such industries include manufacturing, information technology, agriculture, automobiles, service industry, and energy (Villarreal 3). This ensures that the country does not rely on one industry for its economic growth. Eventually, this will make Mexico retain its top position in the global market place.
However, with the new presidency in the U.S., the future of the Mexican economy remains uncertain (Matalon para 1). Donald Trump, the new U.S., has on more than one occasion demonstrated his disinterest in trade between Mexico and the U.S. If it goes to a point where NAFTA is ended, this would affect the future of the two countries in the global marketplace (Matalon para 9).
Conclusion
Mexico is a country whose economy is positively growing. The business environment is well facilitated for investment, and many countries have invested in this country. Looking into the future, Mexico’s economy will expand, making the country remain relevant in the world marketplace.
Works Cited
Matalon, Lorne. Mexico Ponders the Future of Trade with the U.S. 2017, http://www.marketplace.org/2016/12/06/economy/mexico-contemplates-what-change-its-trade-relationship-us-might-mean. Accessed 25 Jan. 2017.
Mexico Moves Forward in the Ease of Doing Business Index Ranking. 2013, http://www.economia-snci.gob.mx/sic_php/pages/bruselas/trade_links/ing/octing2012.pdf. Accessed 25 Jan. 2017
Mexico’s Position as a World Class Trader. 2015, http://www.economia-snci.gob.mx/sic_php/pages/washington/importa/mexicos_position_world_class_trader.htm. Accessed 25 Jan. 2017.
OECD. OECD Economic Surveys Mexico. 2014, pp. 1-38, http://www.oecd.org/eco/surveys/Mexico-Overview-2015.pdf. Accessed 25 Jan. 2017.
Pacheco-Lopez, Penelope. “Foreign Direct Investment, Exports and Imports in Mexico.” The World Economy, vol. 28, no. 8, Aug. 2005, pp. 1157–1172,
Villarreal, M. Angeles. "US-Mexico Economic Relations: Trends, Issues, and Implications." Library Of Congress Washington Dc; Congressional Research Service, 2010.
Where Is Mexico? 2 Oct. 2015, http://www.worldatlas.com/na/mx/where-is-mexico.html. Accessed 26 Jan. 2017.
