Economic Relations In Mexico

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1. Introduction In this paper a critical analysis of the dependence of Mexican relations in economic terms with the United States will be made, this is because the Mexican economy mainly depends on its exports, therefore, relying on a single commercial partner makes us highly vulnerable in our economy. Since the beginning of the 90's and with the entry of Mexico into GATT, the economic opening of Mexico was developed until the beginning of NAFTA in 1994, where Mexican exports increased their dependence over time, which has had negative effects and positive and negative for Mexico. We know from the positive side it allows a higher commercial penetration in international markets, allowing many companies of international level to achieve higher…show more content…
Naturally the degree of immersion over the years has been decreasing; however, the risk remains essential for the Mexican economy. Due to Mexico's dependence on the United States, little innovation and lack of technology, Mexico should diversify not only its trading partners but also its exports through innovation, technology, the attraction of foreign direct investment and improvement of its services. For example, last year Mexico returned to be one of the best countries in tourism and China is the first country that exports tourists, however, the Chinese are not yet interested in visiting Mexico due to the lack of industry of Asian tourism in Mexico. Mexico currently has 12 free trade agreements with 44 countries and 22 agreements for the promotion and reciprocal protection of investments (APPRI) with 29 countries. From my point of view, Mexico has not been able to take advantage of all the free trade agreements in force, which should be a significant advantage for the diversification of its exports and less dependence on the United…show more content…
Defining a nation's trade relations with another country Trade relations for every state are vital because they are a fundamental part of their economic development, where we can see the capacity of each country that has to diversify and maintain stable relations with their partners. More than trade nations I would say international trade, which it's the country's willing to sell and buy products with each other to have better productivity and cost. Most of the economist agree that trade between nations makes the world a better place because in some countries some things cannot be produced, but they have a lot of other, in this way people can enjoy products from other countries. Nowadays there is an International Trade Organization (WTO) charged with monitoring fair trade between countries. Which has several functions among them, in almost any misunderstanding between nations that are exchanging products, serves as a jury and tries to resolve it through negotiations and in the most extreme case that these cannot be determined, can impose sanctions on the country that does not is complying with international trade
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