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Business

1.What is the present state of the economy of Mexico (e.g., GNP, per capita income, rate of economic growth, etc.)?

2. How much debt does Mexico have?

3. How does the economy of Mexico (particularly the economic growth rate) today compare to 20 or 30 years ago?

4. What are the dominant industries and or corporations, and who controls them?

5. How would you characterize the present government of Mexico (democratic, authoritarian, etc.)?

6. What is the trade relationship between Mexico and the United States?

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To get you started I have provided some starting websites for you to check out (at the end of this page) and a couple of articles you might want to read (see attachments).

As you work through your assignment keep the following in mind:
Economic statistics for GNP, income, and growth are readily available but beware that there may be significant variation from one source to the next so you may want to provide high and low statistics or mid-range data. Either way, note these variations in your writing and what numbers/ calculations you are using.

Debt figures are also easily found but make note that they are usually estimates only, and can therefore be subject to variation from source to source (as above).

In comparing the Mexican economy to 20 years ago, you cannot overlook NAFTA. This has had a significant effect on Mexico since its inception in 1994. Be very aware of who is writing on this subject! Be very critical of what you read on NAFTA and ask yourself what the statistics say for Mexico and Mexicans. For example, you might read that investment is up but if this is in the form of multinational corporations moving in and doing business you must consider that they do so on very favourable terms for themselves and often at the cost of domestic firms. Furthermore, this "investment" will do little or nothing for Mexicans if the products are for export.

Similarly, statements are made that trade has increased and that this is good. But upon closer inspection, you may find that much of the increase is in imports, creating an imbalance of trade, a bad situation for the country. You may detect some bias in my commentary here but this is to highlight the need for you to be critical and in part to counter the opposing bias you will more readily find elsewhere.

Major industries and corporations to consider include those in fuels (most notably PEMEX), as well as some major American companies that have established Maquiladoras (low wage industries on the US-Mexico border producing for export). There is ample information about these and all their related issues.

The government is democratic and there was a national election just this past July (2006). The new President is Felipe Calderon, of the National Action Party (PAN). He was the preferred candidate of the American establishment and the voting Mexican business class and elite, but he has very little support from the Mexican poor and/or rural.

The Mexican trade relationship with the US is hugely important and this comes up in some of the websites I have given you here.

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