Latin History

MEXICO ECONOMY

Mexico is located in North America and known as United Mexican States It consists of thirty-one states and a federal district with the capital of Mexico City . It is most populous city in the Earth . The GDP is 1 .149 trillion and per capital income is 11 ,249 . the income per capita is 7 .310 . It is 12th largest economy in the world as measured in Gross Domestic product . The GDP real growth rate is 4 .8 . The average annual GDP growth during 1972 to 1981 was 5 .5 whereas during 1981-1986

it was only 1 .5 . The GDP 's main share is from services 69 .4 and the industry captured 26 .7 . From Agriculture it is only 3 .9 . The public debt is 23 .3 of GDP . Mexico is highly dependent on exports to the United States . The quarter share of the country 's GDP is based on the exports to the United States . Hence the Mexican economy is strongly linked with the U .S . business

The 1994-year is Mexico 's bad year . Of course it starts with acceptance of NAFTA in the year beginning with United States and Canada and ends with dark Christmas with peso devaluation . During the year there are many political problems like Chiapas rebellion , assignations of political leaders . There was such situation the Mexico attacked with the crisis during 1982 and it got recovered by 7 years whereas during 1994 peso devaluation , it takes for 7 months only to get recovery . During December 19 , 1994 , the exchange rate is 3 .50 pesos per dollar . The consumer demand for goods collapsed . The Mexican interest rate on loans dramatically increased creating a shock in the banking system . Some businesses closed due to increase of market share . The exports increased with high exchange rate

TRADE RELATIONSHIP BETWEEN MEXICO AND UNITED STATES

90 of Mexican trade has been put under free trade agreements with over 40 countries . The North American Free Trade Agreement is significant in this regard . 9 of Mexican exports go to the United States and Canada And imports recognized 65 from these two countries . The exports to Untied States are 88 .4 and imports from United States are 68 .4 . Mexico is dependent on trade with United States . The U .S . exports to Mexico include electronic equipment , motor vehicle parts and chemicals and in case of Mexican exports to the United States are Petroleum , cars and electronic equipment

Mexico depends more than on U .S . economy whether it may be good or bad The NAFTA relation between U .S and Mexico completed more than 10 years Of course , after the peso devaluation , the Mexico economy become stable perhaps the United States plays major role . Initially , there was a free trade agreement between Canada and United States called Free Trade Agreement during 1988 . Thereafter it was included Mexico and fresh agreement is established in the name of NAFTA . It is trilateral agreement . It is an agreement among the United States , Canada and Mexico . The...