Globalization and Its Effects on Mexico
Globalization and its Effect on Mexico Mexico has the size and assets which could contribute to wealth and prosperity within their borders. The nation has the second longest border with the United States, significant oil resources, and the 11th largest population in the world. Mexico underwent all the necessary free market changes to help support globalization despite initial resistance, but they are yet to complete the interior microeconomic makeover they drastically need. Mexico has many things working for them but continue to underperform when it comes to global power and economy, China out performs Mexico for low-cost manufactured goods and India is often the target for outsourcing jobs and services over Mexico (Biggs, Shiess). After sustained pressure from the United States and the International Monetary Fund, Mexico decided to change their global economic stance to one that supports the free market. They changed their economy to one based upon exports, they eliminated most tariffs while lowering others, attracted foreign direct investment and private state assets, and finally reduced government spending. These steps were taken at an effort for Mexico to join in on the economic benefits of globalization, but Mexico only finished half of the necessary adjustments necessary for economic prosperity. (Biggs, Shiess) Many residents of Mexico may blame their problems on issues such as the drug cartels, the lack of quality jobs, or lack of foreign investment. Although these ideas may contribute to the problems that control Mexico, they are not the true reason. After Mexico completed their globalization efforts by using the ideas of macroeconomics, they had only completed half the necessary adjustments to truly compete as an economic superpower in the world today.(BBC News) Mexico has failed in great part due to their stubbornness and interior corruption to evolve their nation from that of an above average Latin American Economic power, to that of one
Cited: Biggs, Cate, Ami Shiess, Kelly Korenak, Linda Chang, and Laura Neumeister. "World Savvy Monitor." World Savvy Monitor. Ed. Anita Trachte. The World Savvy Board, Aug. 2009. Web. 17 Oct. 2012. . "Mexico Country Profile." BBC News. BBC, 09 Apr. 2012. Web. 17 Oct. 2012. . "Doing Business in Mexico - World Bank Group." Doing Business in Mexico - World Bank Group. International Finance Corporation, 2012. Web. 17 Oct. 2012. .