National and International Commercial Relations of Mexico
Introduction
In this work, the different aspects that help or harm Mexico’s business relations will be addressed and analyzed. For this reason it is essential to mention that they are and the importance of commercial relations, it is known that they are defined as the exchange that exists between various countries or regions through commercial openness and these are political, cultural, technological and exchange of goods agreements and exchange of goods andservices. Currently, commercial relations represent an economic, political and social development of Mexico that is reflected in the advance of sectors such as: industrial, commercial, agriculture, livestock, to mention some with them you can measure and establish dependenceeconomic that the country has before others. Based on the aforementioned, the following hypothesis was raised ”The diversification of commercial relations strengthen the economy”, although it is known all countries have natural, human, financial and industrial resources that use to produce the goods and services with whichThey interact in the market and make the economy in a constant circulation at the time they begin to market these, although each country focuses and produces more products in which it has greater efficiency for better profitability, makes this amountthose products in which it is more expensive to produce it, so it makes all countries dependent on each other.
Developing
Currently, the world faces a new era in which a commercial policy is established in order to protect the national industry against competition through tariffs or some import restriction, which forces all countries to seekand alternatives to diversify their markets, have new external and internal relations that contain and adhere to commercial agreements and comprehensive policies in order to strengthen and improve the economy of countries.
Mexico has access in almost all regions of the world and is positioned in the thirteenth world export due to established macroeconomic institutions, interact too much in foreign trade and private investment, so the authorities implemented monetary and fiscal policies that havehelped to weight to be an emerging and quoted currency. However, economic dependence with the United States is very large because it is one of the largest commercial partners, but although the commercial wars that Trump has caused an expense for Mexico and a drop in the dollar due to the implementation of tariffs that imposed on Mexico gave an impressive economic impact due to the losses that were in exports and makes it question “if Mexico had greater commercial partners and will eliminate the strong dependence that it has with the United States, it would not affect radically and It could diversify the risk ”, thanks to the North American Free Trade Agreement (NAFTA) that is currently known as the treaty between Mexico, the United States and Canada (T-MEC) which allows a free trade zone to have between these countries and will represent an opportunity to strengthen North America where new export opportunities will be presented and reinforced in region supplies chains nionales, which makes the most Mexican companies take advantage of regional integration so that they can diversify sales, which implies that the economy is in constant circulation that therefore causes an increase in economic efficiency, rates From economic growth they have greater benefits, so income, works, there are greater investments, exports and imports, the manufacturing industry becomes the most reliable supplier for the global industrialist, poverty decreases. Mexico has a border advantage with the United States, which allows you. On the other hand, having greater commercial relations helps to reduce fluctuations in the exchange rate due to conflicts that may occur in the various countries, have greater options that can bring benefits in the purchases and the relationship with suppliers is goingTo find closest what means an increase in goods and services, a fundamental example is the area of opportunity that Mexico has with China where they are capitalizing their opportunities because China is a market with too potential, since it is its second partnerCommercial and exports from Mexico to China are an area of opportunity as well as everything related to handfactura, since they are trends that are going to the rise in the not too distant future because China is growing exponentially and every timeMore expands. While it is essential to respect the agreements, treated that were established or will be established with each country for a healthy coexistence and better circulation between them, as Mexico is known, it has more than an agreement in which commercial criteria are established that benefitthe countries involved. Based on what has been mentioned throughout the Mexico essay, it can have a disadvantage before the other countries and this can be given if any of the countries with which it has alliance is in conflict with another, which places it in a complicated decision makingBecause both benefit it in a certain way and Mexico cannot support one and must remain indifferent to decision making.
conclusion
It can be concluded that commercial relations help strengthen the economy of each country if policies, treaties, agreements are established, among others adequate because they help a better economic, political and social circulation. However, having more opportunities many countries can be leveraged because they have greater opportunities and in the future they can have a debt that will have an impact on their economy, but in general it is established if the resources destined for each sector are established andControl of income and expenses have greater business relations will benefit the country’s economy.
Bibliography
- Lafuente, f. AND. R. N. A. N. D. EITHER. (s.F.). Aspects of foreign trade. Recovered from http: // library.UTEC.Edu.SV/SIAB/VIRTUAL/ELIBROS_INTERNET/55760.PDF
- World Bank Group. (2019). Systematic Country Diagnostic (ed. rev.). Recovered from http: // documents.world Bank.Org/curated/es/588351544812277321/pdf/Mexico-Systematic-Country-Diagnostic.PDF
- Krugman, p. A. OR. L. (2016). International Economy (10th ed.). Mexico, Mexico: Pearson.
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