Mexico :: essays research papers

Why should I invest in Mexico? Mexico has established itself as one of the biggest emerging markets in the world today. It has exhibited many of the signs of a high growth economy, offering several advantages to prospective investors. Some highlights of the Mexican economy include single-digit inflation, a balanced public budget, real economic growth (presently at a rate of 12 percent), a deregulated economy and a favorable investment climate etc. Mexico also possesses a strategic geographic location as a gateway to Latin American markets. Mexico is among the fastest- growing export markets for the United States. In 1985, Mexico became the third largest market for total U.S. exports, behind Canada and Japan. In 1992, Mexico surpassed Japan as the second largest export market for U.S. manufactured goods. Mexico now has become the second most important U.S. trading partner after Canada. U.S. exports to Mexico have grown at double-digit annual rates in every year since 1995, culminating in an astonishing 28 percent growth in 2000. U.S. exports to Mexico grew from $46 billion in 1995 to more than $112 billion in 2000 -- more than our 3rd and 4th largest trading partners, Japan and the U.K., combined, and more than double the value of U.S. exports to the entire European Community. U.S. export growth to Mexico has been buoyed by strong growth in Mexican GDP. The Mexican economy grew a remarkable 7 percent in 2000. Growth declined sharply in 2001, however, in concert with the economic slowdown in the United States. Projections for 2001 have been scaled downward from an initial 5.5 percent to a second quarter estimate of 2.5 percent, and are likely to go lower still. This could be the first year since the inception of NAFTA that U.S. exports to Mexico fail to grow at double-digit rates. Political developments in Mexico have contributed to the country's long-term market potential. On July 2, 2000, voters elected a more plural Congress and chose Vicente Fox of the opposition PAN party as President, ending 71 years of one-party rule by the PRI at the federal level. It is difficult to overestimate the importance of Fox's victory, which marks the first opposition presidency in Mexico's modern era, and symbolizes Mexico's march toward increased pluralism and more open democracy. Fox's priorities include expanding legal avenues for Mexicans seeking employment in the United States, reaching a lasting peace in Chiapas, enhancing foreign trade and investment, and reforming Mexico's fiscal policies.