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Mexico And Emerging Market Essay

1216 words - 5 pages

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 ...view middle of the document...

Of course there are potential negative aspects for American companies doing business in Mexico. Cave, 2014, discusses how product quality may suffer when produced in Mexico. Because quality may be at risk a business owner may have to do more traveling to and from the Mexican location to ensure proper monitoring. Some may find border wait times and policies to be very inconvenient for business. There is also a potential for communication errors because of the Spanish-English language barrier. One may need to invest in training employees English and/or Spanish to do business effectively. Employee turnover, crime, bribery, and drug fears may also be reasons to avoid doing business in Mexico. If one does their homework on an appropriate location, is able to communicate in Spanish, and hire someone to oversee production if unable to personally travel frequently business profits could be huge.
Esplin (n. d.) discusses how Mexico utilizes a system known as Civil law. In Mexico the president has extreme power over all laws in the country and he is rarely challenged. The Civil law system works by the use of numerous coded laws, organized by topic. The federal constitution is the most important legal document in Mexico. In contrast, the United States utilizes a common law system where the president has some power but is also able to be challenged by members of congress and the legislative system. In a common law system the judicial system is also able to enact laws where there have not been any clear laws put into place. In Mexico, this would not be allowed to happen. The president has supreme control. In general, it is best to hire an attorney in Mexico who is familiar with Mexican law when doing business in Mexico.
According to Barone (2013) Mexico is very stable politically and has made great strides in the past 30 years. President’s Salinas (1988-94) and Zedillo (1994-2000) were able to establish a clean election system. There were a few setbacks when president Fox took over in 2000, however, in 2012 President Nieto was elected into office and quickly changed this. Pena successfully reformed the energy sector and made significant gains in the education and judicial systems. Pena continues to strive for an improved economy with more transparency eliminating fraudulent spending and putting a stop to companies who hold a monopoly on the market. Overall Mexico has an economy that is growing in stability because of the improved political system and is even expected to achieve a yearly 5% market growth.
The Gross Domestic Product in Mexico was worth 129,106,200,000,000 US dollars in 2014 an all-time high....

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