Investigating Mexico’s Prospects as a Manufacturing Base for U.S. Firms

Its an okay Paper. With some tweaking it could be really good - Mexico has engraft itself as one of the biggest emerging markets in the world today. It has exhibited umpteen an(prenominal) of the signs of a high harvest-home thrift, offering several advantages to potency investors. Some highlights of the Mexican economy include single-digit inflation, a fit public bud hold up, real economic beginth (presently at a rate of 12 per centum), a deregulated economy and a halcyon investment climate (Risk Management/ June 94, P.32). Mexico also possesses a strategic geographical location as a admittance way to Latin American markets.         Mexico is among the fastest- growing merchandise markets for the unite States. In 1985, Mexico became the leash great(p)st market for conglomeration U.S. exports, behind Canada and Japan. In 1992, Mexico surpassed Japan as the second largest export market for U.S. construct goods. Mexico now accounts for $1 out of e very $10 of total U.S. exports.         After the ephemeral of NAFTA, bilateral make do was quite an balanced in 1994, with the U.S. registering a surplus of $1.3 cardinal, virtually unvarying from 1993. However, there was a shrewd increase in softwood opportunities, as both importee and export growth exceeded 20 percent. One-fifth of the total trade that occurs between the United States and Mexico was created in 1994.

         One of the major sectors that holds a large promise for the U.S. manufacturers is that of the railway car industry. The Mexican market for auto part is expected to grow by 24 percent from 1994 levels to $16.9 billion in the divis ion 2000. It is also expected that NAFTA wil! l serving increase the U.S. export share of the Mexican market to virtually 70 percent by the year 2000. In the dour run, Mexicos location could value the U.S. industries that establish themselves there, through an... If you want to get a skillful essay, order it on our website: OrderEssay.net

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