International Economics / Mba / Country Report / Mexico
-------------------------------------------------
MEXICO
-------------------------------------------------
Country Report
International Economics and Financial Markets
18-03-2013
Table of Contents
Country Overview4
The Balance of Payments7
Trade7
Trade Policy7
Trade Agreements9
Major Trade Partners11
Trade Balance13
Main Trading Goods13
Foreign Direct Investment (FDI)13
Sources of FDI14
Main Sectors Attracting FDI17
FDI Outflows18
Factor Mobility: Migration19
Exchange Rate Policy20
Exchange Rate Patterns20
Evolution of Exchange Rate Regimes21
Economic Challenges: The 1982 Debt Crisis23
Conclusion25
Bibliography27
List of Figures
Figure 1: Current Account Balance (% of GDP)
Figure 2: Balance of Payments, 2008-2017
Figure 3: Mexico’s Free Trade Agreements
Figure 4: Mexico’s Exports by FTA Partner: 1996-2011
Figure 5: Mexico’s Imports by FTA Partner: 1996 – 2011
Figure 6: Composition of Merchandise Trade: 2011
Figure 7: Mexico’s Merchandise Trade with All Countries
Figure 8: Foreign Direct Investment Inflows (% of GDP)
Figure 9: Foreign Direct Investment 2000-2011
Figure 10: Foreign Direct Investment in Mexico by sector.
Figure 11: Foreign Direct Investment, net outflows (% of GDP)
Figure 12: Nominal and Real Exchange Rates 2005-2012
Figure 13: Exchange Rate Regimes in Mexico since 1954
Country Overview
Mexico 's trade policy following World War II through l986, was essentially one of import substitution and closely regulated commercial ties with other countries, including the U.S, Canada and Europe (Kuri, 2012). By implementing various barriers to trade such as tariffs, import licensing requirements, domestic-content provisions, and restrictive foreign investment policies, Mexico was one of the world 's most closed economies. Since joining the General Agreement on Tariffs and Trade (GATT) in l986, Mexico has pursued a policy of economic liberalization, significantly reducing trade restrictions, promoting foreign
MEXICO
-------------------------------------------------
Country Report
International Economics and Financial Markets
18-03-2013
Table of Contents
Country Overview4
The Balance of Payments7
Trade7
Trade Policy7
Trade Agreements9
Major Trade Partners11
Trade Balance13
Main Trading Goods13
Foreign Direct Investment (FDI)13
Sources of FDI14
Main Sectors Attracting FDI17
FDI Outflows18
Factor Mobility: Migration19
Exchange Rate Policy20
Exchange Rate Patterns20
Evolution of Exchange Rate Regimes21
Economic Challenges: The 1982 Debt Crisis23
Conclusion25
Bibliography27
List of Figures
Figure 1: Current Account Balance (% of GDP)
Figure 2: Balance of Payments, 2008-2017
Figure 3: Mexico’s Free Trade Agreements
Figure 4: Mexico’s Exports by FTA Partner: 1996-2011
Figure 5: Mexico’s Imports by FTA Partner: 1996 – 2011
Figure 6: Composition of Merchandise Trade: 2011
Figure 7: Mexico’s Merchandise Trade with All Countries
Figure 8: Foreign Direct Investment Inflows (% of GDP)
Figure 9: Foreign Direct Investment 2000-2011
Figure 10: Foreign Direct Investment in Mexico by sector.
Figure 11: Foreign Direct Investment, net outflows (% of GDP)
Figure 12: Nominal and Real Exchange Rates 2005-2012
Figure 13: Exchange Rate Regimes in Mexico since 1954
Country Overview
Mexico 's trade policy following World War II through l986, was essentially one of import substitution and closely regulated commercial ties with other countries, including the U.S, Canada and Europe (Kuri, 2012). By implementing various barriers to trade such as tariffs, import licensing requirements, domestic-content provisions, and restrictive foreign investment policies, Mexico was one of the world 's most closed economies. Since joining the General Agreement on Tariffs and Trade (GATT) in l986, Mexico has pursued a policy of economic liberalization, significantly reducing trade restrictions, promoting foreign
References: Banco De Mexico, 2009, Exchange Rate Regimes in Mexico Since 1954, Banco De Mexico, September 2009, viewed 26 Feb 2012, <http://www.banxico.org.mx/sistema-financiero/material-educativo/basico/%7BA363683E-9B8D-C3A9-610C-E2153395E4B8%7D.pdf> BBC, 2012, Country Profile: Mexico. Viewed 31 January <http://news.bbc.co.uk/2/hi/americas/country_profiles/1205074.stm> Villarreal, M.A. (2012), Mexico’s Free Trade Agreements, Congressional Research Service, viewed 3 July <http://www.fas.org/sgp/crs/row/R40784.pdf> Villareal, M.A Stoller, M., (2012), Trance-Pacific Partnership: the biggest trade deal you’ve never heard of, SALON, viewed on 16th March 2013, <http://www.salon.com/2012/10/23/everything_you_wanted_to_know_about_the_trans_pacific_partnership/> Terrazas O.,F., (2012), Mexico or Brazil? Inmobiliare, viewed on 16th March 2013 <http://www.ccim.com/cire-magazine/articles/160631/2012/03/mexico-or-brazil> Watkins, T., (2000), Financial and Economic Crisis in Mexico in 1982, San Jose State Economic University, Economics Department, viewed on 16th March 2013 <http://www.sjsu.edu/faculty/watkins/mexico82.htm> Whitt Joseph, A. Jr., (1996). The Mexican Peso Crisis, Economic Review, Federal Reserve Bank of Atlanta, January/February 1996 <http://www.frbatlanta.org/filelegacydocs/J_whi811.pdf> Yen Hope, 2012, Mexican Migration Appears to be in Reverse, U-T San Diego, Associated Press, April 24, 2012, viewed on 2nd March, 2013 <http://www.utsandiego.com/news/2012/apr/24/tp-mexican-migration-appears-to-be-in-reverse/>