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Mexico.
Mexico is the largest Spanish speaking country in the world and has a significant role to play in terms of the economic and cultural aspects of the world. Mexico as a country is a large economy and is a very populous country and therefore its voice needs to be heard in the international stage. It is also a political powerhouse in the Americas. It is the 15th largest economy in the world and among the top four large auto manufacturers in the world. Mexico is considered a middle power economy with a value of $1.26 trillion. The country boasts of a young population as well as huge prospects of mining and energy. The country also has a growing middle class. (Mathews, G,2012)
Mexico comes with a lot of benefits in terms of foreign investment. The government has an amibitous reforms agenda which focuses on changing of the tax system and privatization of sectors like telecommunications and energy. It is a preferred destination because of cheap labor and energy. Mexico is also a member of the North American Free Trade Association (NAFTA). It has become of the trading partners with the United states especially when it comes to autos. Mexico is known to be a key driver of culture and this can be seen in the United States. The Mexican culture has been embraced because of its diversity and the uniqueness that it has. (Balassa,2013)
In Mexico, globalization has meant loosened trade restrictions between countries and reduced trade tariffs. This has led to tripling of the country’s Gross Domestic Product (GDP) between 1992 and 2002. (Atkin,2018) Prior to the onset of globalization, there was economic equalization between the northern and the southern states. However, economic prosperity has been more present in the northern states compared to the southern states with trade converging to the northern states. (Jordan,2012).
To improve the quality of life of its citizens, Mexico should implement three macro actions; Integration, productivity and Inclusion. First, since the formation of NAFTA, the integration of Mexico’s industrial sector with that of The United States of America has become stronger. After the integration between the two countries, notable economic growth has been experienced. Secondly, despite the success of the export industry in Mexico, the country has remained behind in productivity growth and innovation. The productivity of the factors of productivity should be enhanced (Crespi, 2012). Finally, there should be inclusion in employment opportunities and wages. When every citizen is treated as an important part of the economy, then the quality of life is improved. (Caselli,2014).
References
Atkin, D., Faber, B., & Gonzalez-Navarro, M. (2018). Retail globalization and household welfare: Evidence from Mexico. Journal of Political Economy, 126(1), 1-73.
Globalization has its reach even in the day to day economic livelihoods of citizens. Households are rapidly changing how they source their consumption goods.
Balassa, B. (2013). The Theory of Economic Integration (Routledge Revivals). Routledge.
South of America has continually benefited from trade integration in the region. This has been made possible even without lifting trade barriers.
Caselli, M. (2014). Trade, skill-biased technical change and wages in Mexican manufacturing. Applied Economics, 46(3), 336-348.
Wage inequality based on gender and race has been a common phenomenon in Latin America. Mexico has not been an exception. Equality and inclusion is key in improving the life of citizens.
Crespi, G., & Zuniga, P. (2012). Innovation and productivity: evidence from six Latin American countries. World development, 40(2), 273-290.
Continually enhancing productivity of the factors of production increases the output and thus economic growth is hastened. Innovation helps in putting all factors of production to work and ensuring they are well utilized.
Jordan, J. A., & Rodriguez-Oreggia, E. (2012). Regional growth in Mexico under trade liberalisation: how important are agglomeration and FDI? The Annals of Regional Science, 48(1), 179-202.
Trade liberalisation ensures that trade beyond borders is possible. This ensures that countries that possess competitive advantage in different produce can trade with each other.
Mathews, G., Ribeiro, G. L., & Vega, C. A. (Eds.). (2012). Globalization from below: the world's other economy. Routledge.
Most of the 3rd world economies are easily dismissed because they are considered to have very little or no impact on the world’s economy. However, most of these countries have raw materials for development but lack the means of production. If the means of production can be enhanced, then the global economy will grow.
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