Country Study and Analysis

The purpose of this paper was to conduct an in-depth country analysis of Mexico to determine its suitability for foreign direct investment. Mexico is 761,606 square miles total, which is approximately three times the size of Texas. Mexico shares its boarders with United States to the north, the Gulf of Mexico to the east, the Pacific Ocean to the west and Guatemala and Belize to the south. According to the CIA Factbook, in July 2008 it is estimated that Mexico will have a population of 109,955,400 people. Mexico gained its independence from Spain on September 16, 1810 but Spain did not recognize Mexico's independence until September 27, 1821.

Political

Government and politics of Mexico takes place in a framework of a federal presidential representative democratic republic. The President is both head of state and head of government and the commander in chief of the military. The divisions include state governors and town presidents also known as mayors. The current president is Vicente Fox, who was elected in 2000. Presidential term in Mexico is six years. There seems to be a constant risk of corrupt government in Mexico. Although it is said that the highest levels of corruption exist in middle government levels and officials, it also exists in the federal government and accusations have been directed to the president. These corruption accusations and actual reported cases range from bribes to embezzlement.

Economic

According to the World Bank, Mexico ranks 13th in the world in regard to GDP and have the fourth largest per capita income in Latin America just after Argentina, Chile, and Costa Rica. Mexico has established itself as an upper middle-income country. Although it experienced an economic crisis in 1994 to 1995, it made an impressive recovery. The poverty level has dropped from 24.2% to 17.6% in the general population.

Mexico has a mixed economy and has recently entered the trillion dollar class. Recent administrations have expanded competition in seaports, railroads, telecommunications, electricity generation, natural gas distribution and airports. Mexico is the fourth largest oil producer in the world. Mexico participates in NAFTA since 1994 and 85% of its trade is with the United States and Canada. Ongoing concerns include low real wages, underemployment for a large segment of the population, inequitable income distribution, and few advancement opportunities in the impoverished southern states. Mexico continues to struggle with such issues as economic control and development. Corruption at certain levels of the ...