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Paper Topic:

mexico`s exposition

Summary : This is a 3 page in APA format . This discusses the Mexican Economical Crisis regarding facts and views about the crisis and how to remedy the harm done

Running Head : MEXICO 'S ECONOMICAL CRISIS , FACTS AND REMEDIES

Mexico 's Economical Crisis , Facts and Remedies

[Name of the Institution]

[Subject]

[Date]

Mexico 's Economical Crisis , Facts and Remedies

Introduction

Mexico is the most advanced and developed nation in the Latin America with a population over 96 million and per capita income about 3970 USD it 's income ranges

to the upper middle class in the Latin America During the 60s and 70s the GDP grew by 3 .5 annually , but then the crisis of 80s completely reversed the process and the whole Mexican economy went upside down followed by the 90s crisis which pushed back the GNP of the country to the 50 's level . In this we will discus the GDP increase and decrease of the Mexican economy facts of the crisis of 80s and 90s and GNP exchange crisis and inflation , debating about the factors involving in the crisis and discussion the ways the problem could be solved and presenting some suggestions about it

Sudden Collapse in GDP Growth Why

As discussed in the introduction the data shows that during the seventh and eighth decade of the last century the GDP growth of Mexico showed a mean 3 .5 annually growth , but after the 84 crisis the GDP growth shrank to 0 .5 . This sudden collapse has aroused suspicions about the credibility of the Mexican claim of 3 .5 GDP growth annually . GDP does not measure output reliably because it includes not only the final output produced by an economy 's market , but also transactional activities , which are intermediate to production (Wallis and North 1986 North 1987 ) Governments spend a large amount of money on National Defense , Justice , Social Reforms and enforcing regulations . The transactional activities regarding these issues are intermediary in nature but are included in the standard computation of GDP . During the last three decades preceding the 84 crisis transactional activities have varied . Due the change in the structure of the nation 's economy i .e . the traditional agriculture trends declined and the share of manufacturing and services in the economy increased , as well as the economic interdependence . Government 's change in policies effected the transactional cost while the decreased in oil prices enhanced the process resulting the indebtedness of the government which compelled her later to take high interest loans , thus increasing inflation and the currency exchange rate became unstable . These all circumstances blew every thing out and Mexican economy was completely crushed resulting in sudden downfall of GDP

GNP Downfall in the 90s

In 1994 the GNP of the country fell down to its historical low as a result per capita income fell to the level of 50s and the plague of poverty spread all over the country leaving no one undisturbed . The main causes of this turbulence as analyzed by...

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