Question

In: Operations Management

What is the bribery and corruption risk/index of Mexico? a) What is Mexico's demographics: Population, growth...

What is the bribery and corruption risk/index of Mexico?

a) What is Mexico's demographics: Population, growth rate and per capita income level etc?

b) What are the major exports and trading partners of Mexico?

c) What is the inflation level, currency exchange rate, risks of devaluation versus the dollar in Mexico?

d) What is the education and literacy level, availability of skilled labor and labour cost in Mexico?

Solutions

Expert Solution

1. Mexico scores 29 ponts out of 100 on 2019 corruption Perceptions Index reported by Transperancy International.( on a scale of 0 (Highly Corrupt) to 100 (Vey clean)

a) Mexico's Demographics are as follows

  • Population (2020) - 128,932,753, Yearly Change - +1.06%, Global Rank - 10
  • Per Capita Income (Dec 2019) - 9,998.052 USD
  • GDP Growth Rate (Jan 2020) is  -0.5%
  • Total Fertility Rate - 2.1
  • Life Expectancy - Female - 78.2 years and Males - 72.6 Years

b) Majority of export and trading partners

  1. United States $344.9 billion
  2. Canada $14.1 billion
  3. China $7.2 billion
  4. Germany $7.1 billion
  5. Brazil $4.4 billion
  6. Colombia $3.5 billion
  7. Japan $3.3 billion
  8. Netherlands $2.4 billion
  9. South Korea $2.3 billion
  10. United Kingdom $2.2 billion
  11. Chile $2.1 billion
  12. Belgium $2 billion
  13. Gautemala $1.95 billion
  14. Italy $1.78 billion
  15. France $1.77 billion

c) Inflation Level (2020) - 3.14%

  • Currency Exchange Rate - 0.042 USD
  • Risk od devaluation is moderate under current situation

d) Education and literacy level

  • Literacy Rate (2018) - 99.39
  • Availability of skilled labour - 42% of 117 million people
  • Labour Cost of High Skilled labour - $715
  • Labour Cost of Low Skilled Labour - $224.25

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