Question

Explain in your own words Five factors about The country of  Mexico environment which discourages or impacts negatively on foreign direct investment and trade (include legal, political and socio-cultural factors)

Note : the answers should be computerized - Please do not copy and paste from the internet (include legal, political and socio-cultural factors)

Answer 1

Mexico is also called as United Mexican States is one of the second biggest company in terms of economy in Latin America,it is in between U.S and Central America.It is also known for one of the major oil exporter.Mexico is known for its beautiful places,landscape mountains, and jungles.Mexico is having 120 million polutaion,most of them in mexico speak spanish.Comping with surrounding countries its the second most population contry.It having 31 states with 83% roman cathlolicism and other are christians and others.Its currency is preso and capital city is Mexico city.

When it comes to foreign directive Investiment there are so many issues that occures when we discuss about FDI in mexico as its a border country there are so many allegations with U.S.There is issue in liberalization on trade and service.Trade and investment will bring strong and sustainable economic growth and development in the country.The country has to concentrate more on the issues that arrives with FDI.

Mexico has a very bad in projecting the mixed consumptions of the liberalization to economic policy.This kind of approach creates a negative impact on the investors to invest in the country.

The basic policies that are framed to carry the import and export business structure will not properly attaend the country,It could be anything like ecomomical and political.

Mexico has framed its own policies and agenda of economic liberalisation inorder to attract the investors throughout the world to do foriegn trade investiment with the country.

The trade includes all the FDI rules and policies needs to be addressed like industrial/trade,investment,Non public,and degularize liberalizations.In order to continue its trade with other countries it has few reforms along with this like GATT and NAFTA.These are the general aggrements are made to do the free trade with north american,controlling the capital and investiments with this and climinated anti foreign investor to attract domestic investors.Most of the companies are privatized in mexico because of its trade and investment policies.They are mostly from banking,telecom and oil and gas.They presented long standing policies to attract the investors in the industries like oil and gas.

Its main task to deregulate and adopted several measures with the trucking industry to encourage the competion among them and eradicates the barriers to enter and exit tariffs are eliminated.

For all these activities that are hapenning in the country because of the policies it frames in carrying the invest and trade activities which impacts onthe countries GDP and the FDI growth is also very less compare with other countries.It effects it sustainability and dream of their prosperity.

In 2008 it is the most effected country in terms of financial crises,because of that it decreases the labour wages and also effects the succes of leberalization.

Mexico is completely depends on U.S manufacturing sectors and users,there are so many drawbacks of relying on FDI,in terms on payments that are made to investors and involved in controversial things.Most of the things are manufactured in other countries they mexico will only do the assembly works and delivery of products.

There are no proper trainings are provided to the workers,the kind of work that deliver by mexicans is not up to the mark in terns of quality and service.Because of that it could not received any valuable resources and technologies to the country and face a low wage rate to the employe.The labour cost is very leass as there are no skilled employees in the country.

The telecom spectram in mexico is poor delivers all poor sifnals will not have proper service and customer resolution are not provided in time by which the telecom industry is big failure in the country.

In all means like it will not manufacture wiill do mosty import and export,most of the manufacturing material import from neighbouring countries,not delivers proper technologies and delivers poor servie are impacting negatively on the FDI of the country.