Multinationals in Mexico
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Mexico since the advent of the North American Free Trade Agreement has improved is economic picture and shifted its political orientation to a degree. Multinational investment has been part of this change, and multinationals can be seen as both benefiting Mexico and yet contributing to economic stagnation in some respects. Many multinationals take advantage of Mexico's relatively cheap labor market, for instance, and so tend to keep wages low. NAFTA can be seen as part of a new effort at globalization as trade barriers are removed and more and more companies become multinational in orientation. Trade openings pose a problem for countries like Mexico interested in introducing reform while dedicated to not losing the capitalist base they have already achieved. Emphasis has been placed on the need to change regulation of foreign investment in order to increase Mexico's attraction to multinational enterprises, and to a great degree this has been accomplished. Reliance on multinationals, however, can create problems when those multinational companies investing in Mexico experience problems elsewhere, as was recently true with General Motors. An examination of the climate today shows how multinationals operate in Mexico and how well they serve Mexican economic interests.In 1997, Mexico experienced economic growth of 7 percent, the highest rate since 1981, yet this as seen as insufficient to overcome the underlying problems. analysts stated that what was required was at
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s Arizpe plant, which also exports a large percentage of its production to the U.S. market. Economists said they expected a sharp reduction in exports from the Silao and Ramos Arizpe plants to widen Mexico's trade deficit during June and July 1998. Economists projected Mexico's trade deficit at $40 million during June, partly as a result of the GM strike, and believed the deficit could widen further to $200 million in July if the strike continued (Latin America DataBase).
The strike was not responsible for all of the recent decline in automobile exports, however, and exports from other
automobile companies, such as Nissan de Mexico and Ford de
Mexico, also declined during the second quarter of this 1998. The widening trade balance is one reason for concern, but some analysts said that the greatest impact of the GM strike might be seen in statistics for industrial production. The automotive sector is projected to grow by only 18 or 19 percent in the second quarter of this year, which would be a decline of more than 10 percentage points from a growth rate of more than 31 percent over the same period in 1997. GM published a report early in July saying that production in Mexico, the United States, and Canada during June tota
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Some common words found in the essay are:
Trade Agreement, Grupo Pulsar, Cuban Mexican, Mexico Ford, North American, Ramos Arizpe, Coahuila Guanajuato, Salinas Leon Motors, Smith D1, America DataBase, multinational corporations, economic growth, latin america, latin america database, ramos arizpe, smith d1, north american, farmer partners, america database, gm strike, de mexico, ramos arizpe plant, america database strike, farmers own land, coahuila guanajuato plants,
Approximate Word count = 1752
Approximate Pages = 7 (250 words per page)
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