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MEXICO AS A RAPIDLY DEVELOPING ECONOMY

Presented By -

ANINDITA BANERJEE

DEBALINA DUTTAGUPTAMONICA SHARMA

MOUSUMI SARKAR

PIYA CHATTERJEE

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INTRODUCTION

Rapidly developing economies are the nations with social or business activity

in the process of rapid growth and industrialization.

Mexico has a free market economy in the trillion dollar class.

It contains a mixture of modern and outmoded industry and agriculture,

increasingly dominated by the private sector.

Trade with the US and Canada has nearly tripled since the implementation of

NAFTA in 1994.

Mexico's GDP plunged 6.5% in 2009 as world demand for exports dropped and

asset prices tumbled, but GDP is expected to post positive growth late in 2010.

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GENERAL HISTORYShores of shallow lake Texcoco, present day Mexico City.

Divided into

5 major civilizations :The Olmec,Teotihuacan,

Maya,Toltec, andMexica empires

ARCHAIC PRE-CLASSIC CLASSIC POST-CLASSIC

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DEMOGRAPHICS

Two types of civilizations emerged in Mesoamerica: the highland andthe lowland type.These new civilizations had a social structure dominated by a rulingclass priest.

Municipalities are incorporated places in Mexico, that is, second orthird-level political divisions with internal autonomy, legallyprescribed limits, powers and functions.The constitution not only recognizes the 62 indigenous peoples living inMexican territory but also grants them autonomy and protects their

culture and languages.

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Reasons for making ³Mexico´ a rapidlydeveloping economy

The economy of Mexico is the 13th largest in the worldin nominal terms.Mexico's economy has become heavily industrialized,

particularly around the border with the USA, where alarge number of factories (maquiladoras) and lightindustry are based.Mexico has an export-oriented economy, more than90% of its trade is under free trade agreements withmore than 40 countries.The impact of NAFTA on Mexico¶s economy increasedthe process of integration between Mexico and the U.S.

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The Gross Domestic Product (GDP) of Mexico

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ORG ANISATI O NS RE SP O NSIBL E FOR TH E PRO SPER ITY O F RDE

Merck: U.S based company working to promotehealth and has developed a unique program aimedat increasing Mexican global competitiveness.

Ford Motor Company: Ford Motor Company¶s

Schools Construction program has built 207elementary schools in Mexico, which have beendonated to the Mexican national educationsystem.

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Fed E x E xpress Mexico: The company hasestablished programs to support the health,education, and retirement savings of its 1,040employees and their families.Whirlpool Mexico: The company is a leader in

promoting adherence to internationalenvironmental and safety standards in Mexico.

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IMPACT OF GLOBALIZATIONIN MEXICO

Effects on income levels and living standards-labor market rigidityuneven income distribution.

Effects on employment-1.3 million new jobs were directly generated by exportsgradually reduced regional disparities, both economic and social

(mainly in the northern and central parts of Mexico).

Costs of institutional constraints and benefits from opening-

the costs of existing excessive regulations in Mexico lead to higher transaction costs for the economy as a whole.resulted in a misallocation (and waste) of resources, which

in turn reduces economic growth and incomesthe inadequate legal system and its institutions

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Hofstede·s cul t ural pr edis p osition - M exi c o

Mexico's highest Hofstede D imension is UncertaintyAvoidance, indicating the society¶s low level of tolerance for

uncertainty .

Mexico has a low Individualism .Mexico has the second highest Masculinity (MAS) ranking in

Latin America .

Another D

imension in which Mexico ranks higher than other Latin neighbors is Power D istance.

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CONCLUSION

The Mexican government has promoted transparency,democratic governance and the enforcement of therule of law, which has resulted in a stable pro-

business environment.With Mexico¶s extensive network of Free TradeAgreements, foreign investors benefit from a clear and certain legal framework.

Mexico has emerged as aRDE

mainly due to itstrade liberalization process since NAFTA as well asits strong domestic market with low labor costs.