International business in Mexico

International business in Mexico

International business in Mexico

Mexico is a celebration of colour, variety and ancient tradition. This intriguing land shares its borders with the US, Guatemala and Belize. Mexico’s total area spreads over a diversified 1,964, 375 sq km. The country has a Spanish-speaking population of over 127 million. Mexico is classified as a federation that constitutes 31 states and one federal district called Mexico City, which is also its capital.

Akin to its diversities, Mexico’s political framework combines ideologies and emerges with a federal, presidential, representative democratic system. There are three levels of government in the Mexican political mix: The Federal Union, The State Governments and The Municipal Governments. The President of the United Mexican States, also Head of State and Government and the Commander in Chief of the Mexican military, appoints the cabinet, and handles law execution.

Mexico offers a varied platter of cherished historical sites, enchanting terrain, and unique cultural and political influences. Free trade policies place it in a highly accessible spot to over 40 countries. This has resulted in Mexico being known as one of the top trade destinations in the world.

What are Mexico’s vital data points in 2016?

Population (million) 127.5
GDP (billion USD) 1,045
GDP per capita (USD) 8,201
GDP per capita PPP (USD) 17,862
Purchasing power per dollar, compared to the USA 166%
Surface area (sq km) 1,964,380
% of population living in urban areas 79%
% of GDP added by agriculture - industry - services 3% - 34% - 63%
Ease of doing business index (1 = best, 180 = lowest) 39

Which are Mexico’s business index and its most profitable sectors?

Mexico currently ranks 39th in the world for doing business in and is primarily an export-oriented nation.

Within Mexico, the following industries are the most productive:

  • Oil and Gas
  • Manufacturing
  • Infrastructure Construction and Development
  • Aerospace
  • Ports and Port Services

Where the action really is - international business and Mexico

Mexico’s Export Commodities:

Commodity Worth US$ (in billions) Percentage of Total
Exports
Vehicles 86 21.6
Electronic equipment 80 20.1
Machines, engines and
pumps
60.3 15.2
Oil 42.2 10.6
Medical Technical
Equipment
14.4 3.6
Furniture Lighting Signs 9.7 2.4
Plastics 8.6 2.2
Gems, precious metals
and coins
7.8 2
Iron and Steel products 6.1 1.5
Vegetables 5.5 1.4

What are Mexico’s important events?

Mexico is an active trade show destination that facilitates a variety of businesses, including agriculture, auto, food and beverage, handicrafts and pharmaceuticals. Popular sports are football, boxing and basketball. Mexico’s enchanting land has attracted many tourists to its snow-capped volcanic peaks, mesmerising lagoons and scenic beaches.

As a business locale, Mexico’s dependence on the United States cost it a great deal during the 2008 global financial crisis. However, free trade agreements and positive persistence have helped the country to recover. Its export value was boosted to over US$303 billion annually, as US and Canada continue to act as their long-standing top trade partners. Positive signs attract international businesses to Mexico. A complete market research will help you understand the country and formulate your international expansion strategy.

This entry in America was updated on May 4, 2018 by specialist.