Economic Analysis of Mexico

Introduction

Time has changed the planet Erath up to a significant extent. Growth and development in the fields of science, technology, research and various other aspects have had a huge impact on the international relations and dynamics. Concepts like Outsourcing and Globalization has changed the very nature of businesses used to run. Therefore, the economies at national and international level have also experienced a significant change. Some of the countries in the past decade have been doomed in the debt and other inflation related crisis. However, some of the nations have shown consistent development and progress in various fields and therefore promise further achievements in other fields in the future. These nations can simply be regarded as the Emerging economies or markets. One of such nations that have shown a remarkable progress is Mexico. With its markets slowly expending and infrastructure developing, the country is most likely to turn in to one of the economic giants in the years to come.

Discussion

Therefore, it will be fair to say that various Economists believe that the country will continue to further expand its markets. However, a number of challenges the country may face will also be inevitable to avoid.

Mexico History

The time period from the year1930 to 1970 was named by the various financial history specialists as the "Mexican Miracle". This can be regarded as the time of development in investment, which emulated the beginning of the capital amassing throughout peacetime and the end of the Mexican Revolution. Throughout this period, Mexico followed the financial model of ISI (Import Substitution Industrialization) that advertised and secured the advancement of the many national businesses. The nation therefore encountered a lot of investment through which various commercial ventures quickly established and introduced (Lustig & Robert, pp.82).

In the era of late 1960s, the development under the ISI model principles arrived to a peak. Throughout the era of 1970s, the managements of López Portillo and Echeverría, attempted to incorporate approaches that promoted social growth and welfare. This was the era when the Government decided to invest all its resources into the state-possessed oil association, that in turn serve as a long-run livelihood source to support the various social welfare matters.

After the intense crisis of the year 1982, moneylenders were unwilling to come back to Mexico and, this is the time when inflation in the region further increased. The currency and financial crises then hit Mexico in 1994.

The leading venture to the liberalization of exchange was Mexico's agreement on the GATT (General Agreement on Tariffs and Trade) in the year 1986. Throughout the Salinas organization numerous state-owned firms were then privatized. In the year 1992, the NAFTA (North American Free Trade Agreement) was signed between the Mexico, United States and Canada and after the agreement that was an effective step to be taken by the Mexican Government (Lustig & Robert, pp.82). The various other policies made by Bill Clinton, the American president, assisted in addition helped Mexico deal with the crisis. In approximately less than year ...