Country Risk Report Mexico

Topics: Mexico, Inflation, Gross domestic product Pages: 8 (3450 words) Published: April 13, 2013
Country Risk Report: Mexico

Unit Code:
International Banking
Student ID:

Political and Social Factors2
Economic factors4
Financial System7

 |  |
Country Facts:|
Government type:| Federal republic|
Population (millions):| 115|
Capital:| Mexico City|
Surface area (sq km)| 1,943,945|
Borders| -United states (72%)|
 | -Guatemala (22%)|
 | - Belize (6%)|
Languages:| - Spanish (93%)|
 | -Indigenous (6%)|
Religion| - Roman Catholic (77%)|
 | - Protestant 5%|
 | - Unspecified (14%)|
Head of state| Enrique Pena Nieto|
Currency:| Mexican PesoSource: CIA Factbook|
Mexico, a former colony of Spain and today biggest Spanish speaking country and Latin America’s second largest economy and fifth biggest emerging market in terms of total GDP in US$(2011) has a growing GDP of 3.9%. It is highly dependent on the USA for its exports (71.7%). Mexico has history with corruption and violence and political instability. It became a republic in 1917 after a civil war that started in 1910, since that time the Institutional Revolutionary Party (PRI) has had the power until 2000 where PAN (National Action Party) won, and there was the first non PRI president, however after two different PAN president the country is now back with PRI. Under the New President Enrique Pena Nieto who has taken over the government as per 1st of December which means the political power is back with the Institutional Revolutionary Party (PRI). The party with most experience in leading however also the one most know for autocracy and corruption. Additionally Mexico has a large issue with organized crime, whom the new president Enrique Pena Nieto has also promised to keep actively opposing. The high levels of organized crime can be risky, in forms of bribery, extortion, theft, kidnapping or even murder. Political and Social Factors

Human development Index (rank):| 57/187|
Corruption perceptions index (rank)| 100/143|
Press Freedom index (rank)| 149/179|
Political Instability Index (rank)| 79/165|
Institutional Revolutionary Party won the election with its candidate Enrique Pena Nieto on the 1st of July 2012, after having had 2 terms of PAN (National Action Party). The new president having taken office on December the 1st has vowed to restore peace and security and work on structural reforms. His oath of office was met with a lot of protest, hundreds of protesters with firebombs and sympathizers property damaged. The president has announced plans for creation of new and more stable jobs which should help fuel the growing Mexican market and demand. Additionally there should be less radical fighting against organized crime, which will hopefully reduce the amount of deaths which have been enormous over the last years where they had an average of 10,000 deaths related to drugs a year. This less aggressive approach should help reduce the general violence and help stimulate the stability and peace, as currently a lot of people are murdered and foreigners often get kidnapped by the cartels to receive high ransoms. Regrettably the expected end of open war against the drug cartels will most likely lead to a renewed increase in corruption and smuggling. Corruption is a probably the biggest issue in Mexico, currently ranked 100th out of 143 with a score of 3.0 which means Mexico has really high levels of corruption. Reducing corruption is important as it may help creating an open and fair market competition. Where they also need to work on is reducing the monopolies in Mexico as in many sectors the large part of the markets are being owned by monopolies or cartels. Most of the Mexican population pays up to 40% too much for many daily services. With increased competition and lower prices this money could be use to increase living conditions and stimulate a potential growth in markets. Illegal...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Country Report / Mba / Mexico Essay
  • Country Report Mexico Final Essay
  • Country Risk Report
  • Mexico Country Analysis Essay
  • Risk reviw report Essay
  • risk report Essay
  • Mexico Essay
  • Country Analysis of Mexico Essay

Become a StudyMode Member

Sign Up - It's Free