Mexico Is A Country Located In North America

Mexico is a country located in North America

Introduction

It is a country located in North America, with a beneficial geographical position, since, it limits to the north with the United States and south with Central America, it also has access to the two oceans. It has a population of 119,530,753 according to the United Nations Development Program and with an area of 1,964,183 km², which makes it one of the largest countries in Latin America. Its official language is Spanish, however, there are around 72 native languages.

Some of the most important cities, high commercial development and with more than 1 million inhabitants are:

• Mexico City
• Guadalajara
• Monterrey
• Puebla
• Toluca de Lerdo
• Tijuana
• Lion
• Juarez City
• Keep
• San Luis de Potosí

Developing

Economy

Mexico is not only territorially, or population, it also has a good economic landscape, because it is the third largest economy and the second at the Latin American level, only surpassed by Brazil and the United States. The economy is based on exports of free trade agreements and treaties with a large list of countries, although the most representative, is with the large countries of North America, which represents 90% of exports and 60% imports.

The breakdown of GDP is represented by 65% the provision of services, 31% industrial development and the agricultural sector 4% of the total GDP.

According to UNDP (2015) the Gross Domestic Product at constant prices is 13, 743, 338 million Mexican pesos, which represents 62.9% of the total product.

CONDITION

Contribution in Mexican pesos

• Mexico City

2, 312, 562 million

• Mexico state

1,230,628 million

• New Lion

1,041,797 million

• Jalisco

889, 703 million

• Veracruz

676,899 million

• Guanajuato

591,414 million

• Campeche

570, 172 million

• Coahuila

464, 771 million

• Puebla

435, 028 million

• Tabasco

433, 857 million

Politics

Politically, the country is recognized as the Federal, representative and democratic Republic. It has approximately 32 federated entities, of them, 31 are free states and a Federal District where federal powers are.

The federal government has three types of powers, as in most countries: the Executive, which is represented by the President, the legislative that is located in the Congress of the Union that is fragmented in two institutions that are the Senate andThe Chamber of Deputies and the last power is the judicial one, which is made up of the Supreme Court of Justice of the Nation .

Its current president is Andrés Manuel López Obrador, who is characterized by having increased the rules to stop the migration of Mexicans to the United States and other countries. In addition, its policy is inclined to the total eradication of corruption and poverty and a struggle for social justice and equality. The president has been backed by evangelicals who unconditionally support conservative candidates. In fact, once the elections were won, it met with investors to calm the tension of the elections and attract foreign investment as one of their priorities.

Poverty

To measure the poverty index, information is taken from the data collected from the National Council of the Evaluation of Social Development Policy (Coneval) the following aspects are taken into account:

• Educational backwardness
• Lack of access to health services
• Lack of access to social security
• Lack of quality and housing spaces
• Lack of access to basic housing services
• Lack of access to food

For 2018, it was determined that approximately 52.425.887 people are in poverty, which has been decreasing since 2014, when it was found at its highest point, as seen in the following graphics. Also, an important number of people is in extreme poverty in the country. Which means that it is a consistent problem and demonstrates that public policy must be oriented in solving the problem.

Customs and traditions

The customs and traditions in Mexico have been one of the main features of the country and reflects a strong influence of several countries. The high number of aboriginal people who settled in the country from the beginning, has allowed a strong and marked culture to be maintained in the country.

One of the most important festivities is the celebration of the Day of the Dead, held on November 2. Beliefs of Mayan and Aztec cultures are incorporated, as well as Christianity. On the day of the Virgin of Guadalupe, patron saint of the country and whose celebration and on December 12 there is a pilgrimage to Basilica of Santa María de Guadalupe, in Mexico D.F.

As for music, mariachis are essential, since with their music and attire it represents the Mexican people. In gastronomy the tamales, the tacos, the pozole accompanied some with sauces and the majority made of corn. They are usually eaten at Christmas and the Day of the Dead.

Key product

Mexico is the 9th largest export economy in the world The main exports of De Mexico are cars ($ 45.1 billion), parts-people ($ 28 billion), cast trucks ($ 26.7 billion), computers ($ 22, 5 billion) and oil crude oil or bituminous minerals ($ 19.5 billion) (…) The main destinations of De Mexico’s exports are the United States ($ 307 billion), Canada ($ 22 billion), China($ 8.98 billion), Germany ($ 8.83 billion) and Japan ($ 5.57 billion). (OEC, S.F.)

Then, Santander Trade for 2017 the most exported product were tourism cars and car vehicles for the transport of 10 or more people. According to Morales Mexico, almost 4 assembled.1 million cars and trucks, moving to South Korea as the 6th largest producer of vehicles in the world in 2018, however China remains the largest producer worldwide.

According to the Ministry of Economy of Mexico from 2000 the industry experiences a change, and goes from producing economic models to focus on a more global and demanding market for more sophisticated models and with greater added value. When in 1995 the North American Free Trade Agreement (NAFTA) comes into force, this brings with it a modernization process for the automotive industry in Mexico. This allows you to have sustained growth until 2000, after this year production is reduced due to the deceleration of the US economy and the modernization of production lines. Then the production increases to the 2009 crisis where a 28 falls.1%, subsequently increased in 2010.

Mexico for the automobile sector has an association called Mexican Association of the Automotive Industry (AMIA) constituted by the same companies that manufacture vehicles (Audi, BMW, Land Rover, Mazda, Mercedes-Benz, Nissan, Ford, Peugeot, Renault,GM, FCA, Honda, Subaru, Honda, Hyundai, Isuzu, Suzuki, Jaguar, Toyota, Volvo, Kia and Volkswagen) since 1951. As this represents companies in a rule of law, it has a voice and vote, and its mission is to publicize automotive matters, of the associated companies and statistics and evolution of vehicle manufacturing. It has been present and has collaborated with the Government and the respective authorities in the negotiation of international agreements and treaties.

This product and its production presents a monopolistic competition market model, since all companies produce cars and only the Mercedes-Benz, for example, produces a car of this brand, but at the same time competes with other companies that also produce cars, all slightlydifferent among them. It also presents a variety of buyers internally and external.

Business partners

The most important commercial partners for the Mexican economy are the United States, China, Canada, Germany and Japan based on export and import statistics of 2018. It is important to consider that 80% of exports are directed to the United States. Which indicates that Mexico must diversify its market a bit about foreign trade.

Mexico is one of the countries with the highest trade agreements in the world which benefits it a lot by having so many countries with which it can trade and have the ease of transit in these free trade areas. It has 12 free trade treaties that includes 46 countries with which to negotiate. Apart from the treaties also has 32 agreements for the promotion and reciprocal protection of investments with 33 countries within the framework of the Latin American Integration Association, also known as Aladi.

Aladi, is an intergovernmental organism composed of 13 member countries that promotes the expansion of the integration of the region in which it is located. This mechanism represents a set of 20.4 million square kilometers. The Latin American countries that make it up are Argentina, Bolivia, Brazil, Chile, Colombia, Cuba, Ecuador, Mexico, Paraguay, Panama, Peru, Uruguay and Venezuela.

However, the objectives of trade -free treaties are based on creating loyal competition, improving legal and legal quality in agreements between states and attracting investments, eliminating certain commercial and tariff barriers.

The first treaty with which Mexico began its commercial agreements and economic blocks is NAFTA;Free Trade Agreement with North America, which includes Canada countries and the United States and began governing in 1994.Also, important to emphasize that with this treaty the implementation of administrators such as the Free Trade Commission, a group of NAFTA coordinators and a Commission for Labor and Environmental Cooperation also entered.

After NAFTA, the treaty that followed in governing was the FTA between Mexico Colombia and Venezuela, known as G-3, however, Venezuela by decision of Governor Chaves decided to withdraw from the treaty, so now is the TLC G-2 withColombia nothing more. He entered to govern from 1995 and especially promotes equal relations between the differences that already exist by nature with Aladi.

Next FTA that the same entered to govern in 1995 is between Mexico and Costa Rica, then in 2000 the NAFTA between Mexico and Chile. In this same year the NAFTA between Mexico and the European Union came to govern. This special treaty apart from promoting free, easy and agile trade between countries also promotes direct foreign investment.

In 2001, the treaty between Mexico and Israel entered to govern and in this same year the North Triangle TLC was also composed between Mexico, El Salvador, Guatemala and Honduras. Apart from the agreement between American countries, the TLC European Free Trade Association was also signed that is made up of Iceland, Liechtenstein, Norway and Switzerland. Similar to the existing treaty between Mexico and member countries of the European Union, this agreement promotes the progressive liberalization of foreign investment granted as the liberalization of foreign trade from services, apart from the characteristics that a NAFTA already has by its nature.

The FTA between Uruguay and Mexico began to govern in 2004 and a year later began to govern said between Mexico and Japan. In 2012, the FTA between Mexico and Peru began governing and even in 2013 a Central America Treaty was signed that is made up of Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. The last FTA in Firmase was in 2015 with Panama.

In 2016, Alianza del Pacífic. In this case, the members of this alliance are Peru, Colombia, Chile and Mexico. It began in 2011 and the main purpose is the growth and economic integration of its states, apart from said also the elimination of visas for citizens of member countries were the first measures taken. This in order to exchange information, prevent crimes and increase the exchange of students.

In this same year, 2016, the Transpacific Agreement for Economic Cooperation, is a NAFTA that apart from complying with its characteristics to expedite trade between states also addresses public policies and establishes an arbitration mechanism for countries that are in the ocean basinpeaceful. Right now the members are Vietnam, Japan, Canada, Mexico, Brunei, Chile, Malaysia, Australia, Singapore and Peru.

Mexico, in addition to having so many commercial relations with most continents, is also an active member in multilateral organizations and forums such as the World Trade Organization (WTO), the Organization for Economic Cooperation and Development (OECD) and the mechanism of the mechanism ofAsia-Pacific Economic Cooperation (APEC).

It is relevant to emphasize that the ease of trade with different countries given to freedom among so many treaties at the same time is a disadvantage for the Mexican economy because instead of opening its economy more in different sectors, the largest beneficiary of the Mexican economy remainsAmerican United States with an indisputable advantage among countries with the greatest impact on trade. Therefore, this generates an even greater dependency effect.

When it was intended to reduce Mexican economic dependence to the American through the diversification of commercial relations rather increased. For example, taking into account that Mexico already has a Treaty with the US (NAFTA), now with the transpacific agreement for Economic Cooperation, this economic dependency relationship with the neighboring country that is already being benefited in a greatpercentage.

Another challenge of the economic blocks which integrates Mexico is that it focuses a lot on the foreign economy and there is not so much focus on the inner economy;There are no development projects in the internal market. Due to the lack of these development projects and the lack of internal competitiveness Mexico began to import products to then be able to export them to the United States with a lower added value, creating a circle in the flow of the process.

Commercial policy.

According to investigations, the area responsible for everything related to the commercial foreign policy of the Mexican federal government is the Undersecretariat, which what it does is:

• Search and negotiate new commercial agreements.
• Manage the agreements.
• Protect interest.
• Representation.

Mexico is a country that within the region is considered one of the most powerful, with a fairly large territorial extension as well as a population of 124 286 623 inhabitants. With respect to the territory, Mexico has many advantages since it connects with Central America, it has roads to export very good and is a neighbor of one of the countries with a very powerful economy worldwide such as the United States. Mexico also has a fairly stable economy, with high and low and with respect to the following study, certain data on this country must be taken into account. According to Macro data, Mexico is the number 15 economy by GDP volume in the world. His public debt in 2017 was 655.298 million dollars, with a debt of 53.57% of GDP. And his last GDP recorded in 2018 was 1,150,064.59 annual.

As mentioned above, with the signature of the NAFTA, it is sought to eliminate or reduce the costs of exporting and importing as well as exchange products between these countries. Currently, the United States, a neighbor of Mexico has taken a turn to commercial protectionism, and this has had serious repercussions for the global economy since the United States is one of the most powerful and strong economies in the world. There are restrictions of the entry of Mexican goods into the US market and the Mexican response turns out to be the imposition of tariffs. Short -term solution in order for certain political groups in the United States to meditate and think about these barriers so that they are eventually eliminated. The more restrictions for trade there are, more restrictions for the exchanges of goods leads to more friction between these countries.

Some of the countries with which the Government of Mexico has a commercial relationship both in America and in other regions of the world are: North America, Colombia, Chile, European Union, Iceland. Norway, Switzerland, Uruguay, Japan, Peru, Central America, Panama, Pacific Alliance.

Mexico is a large country that produces a lot of industry and agricultural products, for example:

• Beer: your approximate annual production level is 100.000 million liters annually. Where the United States takes 80% of this production and the remaining 20% ​​are distributed between Canada, Chile, Australia.
• AVACATE: This is another star product of the Mexican Republic where 80% goes direct to the United States and the remaining 20% ​​go to Japan, countries, low, France, El Salvador, and China. Other products that Mexico exports is chicken meat, tomatoes and others such as tequila a unique product in the world.
• Tequila: Mexico not only ensures exports, but also having a unique product for its denomination of origin, as controlling the markets in that category, because for example: in a period from January to June there are about 100 million liters of tequila being being The United States the country that most importants in the world then are the Spanish and third parties the French.

In 2018, exports represented 450,320 million dollars in profits and increased compared to the previous year by 10%. It is also important to see the countries and dates that enter into force the different commercial agreements.

Customs barriers:

These barriers can be in the form of: (import fees, licenses, certificates of origin, embargoes, sanctions, customs delays, technical barriers or other systems that prevent or minimize trade). On the other hand, other more developed countries use international trade to control shops from other economies. Export process since the 50s has maintained a constant productive process this by the policies implemented see example:

Mexico as a country has been affected since by different factors local companies are affected and there is no growth. In the foreground there is a lack of access to financing which is reflected in a decrease in loans granted of a 5.8% in 2018. The rate are very expensive between 18-20%. Added to the lack of financing, there is an economic uncertainty, which leads to the fact that there is no incentive by small producers to undertake their company.

Mexico export process

In the case of Mexico, such as other countries, they have a series of steps and requires how to make a product produced in Mexican territory can reach different latitudes, but it is not only enough that it develops and is placed in a transport and goes to international destinations By boat or by plane, but there are a number of previous conditions that we must understand how an administrative process is worked or operates.

We must always understand the additional process of how it will be placed in the international market or the prices that should be charged for product or service tea we must understand that international or regulatory policies such as phytosanitary, tariffs and other processes can delay the process of staging such as:

• Export documents and procedures.
• Government support for exports.
• Tariff regulations.
• Regulation terms & international negotiation.
• International payment methods.
• International contracts and dispute solution. (International arbitrations and other mediating instances).
• Technological support for exports.
• Financial support for exporter.
• Final prices.

Conclusions

Understanding these flows of how a SMEs or medium -sized company through its products in the international market we can see the evolution with which Mexico’s exports since 1950 as they have behaved for international openings. In matters for example in oil.

A very relevant issue is the evolution that brought this change in strengthening of the agricultural sector, but more industrialized, thus achieving an urban planning and a growing and constant boom in the capital and urban areas and this because large industries demanded goods such as cotton and as In rural areas, jobs scarce increased the dissemination of the population to the cities of MX.

Then for the year 1950, Mexican local industry supplies 95% of demanding products and for 1958 the private sector invested in technology by accelerating industrial demand by 23% approx and already for those dates the capital relationship work was growing around 8%, After this boom the different sectors pressed for Mexicanization causing it to generate loss of competitiveness. Even if a foreign company wanted to expand its plants should have permission from the secretariat.

Already for 1980 with the discovery of the new oil deposits the government redirects the focus to expansion of the oil industry. But little would last for 1981 there is a decrease in crude oil prices affecting the country. Giving rise to a new crisis, but first of all to a fiscal reform and with the arrival of Salinas in 1988 the Government of Carlos Salinas creates the program called Pact for Stability and Economic Growth (PCE). Whose objective was to achieve an inflation rate of a digit when reaching a consensus with workers and businessmen.

Then the Free Trade Agreement arrives with North America. Favoring relationships. Then with each government as cedillos, fox and others have reforming the process. To stabilize the country, which slowly have been recovering. And for recent years the services sector has taken a lot of workforce which places Mexico in a country with high power of services. And although agricultural goods continue to produce, it is looking for the way to diversify the product and markets so as not to depend so much on the United States that it is its main partner.