Mexican Drug War Affecting Mexico's Economy
Mexico’s Drug War
The Mexican drug war has been affecting Mexico’s economy, businesses, and has left a lot of its citizens dead. The Mexican drug war has been particularly affected tourism in Acapulco, Guerrero where this is a famous location that is popular for its beaches. However, in Acapulco a total of 700 people have been killed. The US warns its citizens from travelling to Mexico overall due to the violence. These warnings have greatly decreased the number of spring breakers to 93%. Thus, this affects the jobs and the profits of the hotels, restaurants, and attractions that affect everything. Other famous attractions like Puerto Vallarta and Taxco have been affected due to the violence.
The violence is preventing Mexico from growing.
Many of the small businesses in Mexico have had to close due to the cartels demanding a fee for being opened. Many foreign companies in Ciudad Juarez postpone investments in factories because of the gun battles that occur in the city. Cartels use violence against businesses by kidnapping employees of the organization, theft, and exhortation to make their profits. An example of this includes Pemex, which is a state owned petroleum company. Pemex was a target for the cartels due to its economic goals. In 2010 many of its employees were simultaneously kidnapped, corrupt employees and cartels also stole from them. As a result Pemex lost about $750 million in fuel and oil from its pipelines each year, including materialistic parts that they took which included spare parts and equipment. People are often forced to work for the drug cartels and when they are refusing they are killed. It was explored by President Felipe Calderon to legalize drugs, but the violence by the cartels would only increase especially since its neighboring country the US would get these drugs
Due to all the violence there has been an increase in private security firms like bodyguards, electronic devices, and armored cars. Armored vehicles are getting a lot of attention since it has increased about 25 percent in Mexico City and 25 percent in the rest of the country. Many car manufacturers are producing armored cars for this purpose. Espeicaly high-class people like CEOS use these types of vehicles. The cost of the insecurity of the violence is 65 billion. It is also affecting FDI since there are many violence increasing in crucial industrial cities like Monterey. Mexican business leaders are reluctant to be open about what is really going on in there The cost of trying to fight the drug cartels is about 172.7 billion, which is twice from what Mexico’s current foreign debt is. These costs are higher than the Middle East fights. However, the violence and homicide hasn’t decreased due to the corruption in the government. Many of the cartels weapons have been traced back to the US. Ultimately the drugs are being made because of the huge demand for illegal drugs in America. On the other side, these cartels bring about 25 billion to 40 billion into Mexico from their sales. The drug money and laundering is bringing much more money into Mexico that the exportation of its oil. Some of the money even appears in the banks of Mexico helping the economy and businesses of Mexico. In the 1980’s the Sinaloa Cartel bought
We will be analyzing the different wars in various parts of the world and how sometimes they are connected and even affect other businesses in different regions of the world
The Mexican drug war has been affecting Mexico’s economy, businesses, and has left a lot of its citizens dead. The Mexican drug war has been particularly affected tourism in Acapulco, Guerrero where this is a famous location that is popular for its beaches. However, in Acapulco a total of 700 people have been killed. The US warns its citizens from travelling to Mexico overall due to the violence. These warnings have greatly decreased the number of spring breakers to 93%. Thus, this affects the jobs and the profits of the hotels, restaurants, and attractions that affect everything. Other famous attractions like Puerto Vallarta and Taxco have been affected due to the violence.
The violence is preventing Mexico from growing.
Many of the small businesses in Mexico have had to close due to the cartels demanding a fee for being opened. Many foreign companies in Ciudad Juarez postpone investments in factories because of the gun battles that occur in the city. Cartels use violence against businesses by kidnapping employees of the organization, theft, and exhortation to make their profits. An example of this includes Pemex, which is a state owned petroleum company. Pemex was a target for the cartels due to its economic goals. In 2010 many of its employees were simultaneously kidnapped, corrupt employees and cartels also stole from them. As a result Pemex lost about $750 million in fuel and oil from its pipelines each year, including materialistic parts that they took which included spare parts and equipment. People are often forced to work for the drug cartels and when they are refusing they are killed. It was explored by President Felipe Calderon to legalize drugs, but the violence by the cartels would only increase especially since its neighboring country the US would get these drugs
Due to all the violence there has been an increase in private security firms like bodyguards, electronic devices, and armored cars. Armored vehicles are getting a lot of attention since it has increased about 25 percent in Mexico City and 25 percent in the rest of the country. Many car manufacturers are producing armored cars for this purpose. Espeicaly high-class people like CEOS use these types of vehicles. The cost of the insecurity of the violence is 65 billion. It is also affecting FDI since there are many violence increasing in crucial industrial cities like Monterey. Mexican business leaders are reluctant to be open about what is really going on in there The cost of trying to fight the drug cartels is about 172.7 billion, which is twice from what Mexico’s current foreign debt is. These costs are higher than the Middle East fights. However, the violence and homicide hasn’t decreased due to the corruption in the government. Many of the cartels weapons have been traced back to the US. Ultimately the drugs are being made because of the huge demand for illegal drugs in America. On the other side, these cartels bring about 25 billion to 40 billion into Mexico from their sales. The drug money and laundering is bringing much more money into Mexico that the exportation of its oil. Some of the money even appears in the banks of Mexico helping the economy and businesses of Mexico. In the 1980’s the Sinaloa Cartel bought
We will be analyzing the different wars in various parts of the world and how sometimes they are connected and even affect other businesses in different regions of the world