Mexican Trade and Exports - Research Paper Example

To offer a better thought of what this business associations means to the two nations, US exports to Mexico are bigger than the total US sales to the BRIC nations; that is Brazil, Russia, India, and Canada altogether, including integrated exports to Great Britain , Belgium Netherlands, , and the France. Twenty-two nations term Mexico as their first or second sales market, and it is a top-five export center for fourteen different nations. American customers and businesses buy huge amounts of bilateral manufactured items and services from Mexico like produce, automobiles, and petroleum among others.

Yet, for each dollar Mexico makes from selling to the US, it shall in turn use 50 cents on US items or services that are a substantial gain to their economy and illustrates the really extra ordinary quality of this trade or bilateral manufacturing association (Mesia, 2008, 14). Mexico is much greater than a nation with which US simply goes on to share a 2,000-mile length land boundary. It is significant for US to notice that Mexico is among their major important commercial associates in the sphere. . It has a high-developed higher learning system, which is just next to Chile in Latin America.

Despite being a dominant petroleum manufacturer, Mexico attains 20% of its power from recycled sources. It is the second biggest manufacturer of silver in the sphere and the biggest manufacturer of the Blackberry smart mobile, and several different products (Weaver, 2012, 45). Fig.1 Available from: < http://www.eia.gov/countries/cab.cfm?fips=MX > 30 November 2013. Mexico is an affiliate of the Group of 20 (G-20) and of the Organization for Co-operation and Economic Development (OCED). It possesses the second largest number of Free Trade Agreements (FTAs) in the hemisphere that develops an inspiring business system that encompasses 43 nations on three continents.

This forms a new chance for global trade and foreign direct venture because it offers the nation and its business associates; specifically the US, tactical availability of a prospective market of more than one billion customers that represents about 60% of the globe’s GDP. An important section of Mexico’s business prosperity in the global field comes in huge portion from its attempts to get rid of commercial and trading rules that prevented its capacity to fight in the international market and attract overseas direct venture.

Mexico has lowered its import tariffs through a standard of 13% to 15% in the past one year. It is presently much simpler to market items into the Mexican market, provided that just four import protocols are required for a home or overseas enterprise to purchase items or services abroad and bring them into the nation to worth increase or to sell. This positions Mexico in a better place than the United States, India, China, and Brazil (Hamnett, 2009,