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The Mexican Economy after NATA - Admission/Application Essay Example

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Summary
The North American Free Trade Agreement (NAFTA), which came into effect in January 1994, played a significant role in the economic relationship between Mexico and the United States of America. The two nations have also come closer in areas such as security, environmental,…
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The Mexican Economy after NATA
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Download file to see previous pages Broken down further, the main issues of concern have been linked to the conditions of the economy in Mexico, the impact of NAFTA on both, the USA and Mexico, and the Mexican migrant labor force in the USA (Unidas).
First this paper will discuss the issues which lead towards NAFTA; it will then focus on its aftermath along with the major financial crisis which took over the world like flare. Further we will explore the political and economic reforms and finally we will look into the market response to the devaluation and the Mexican and U.S. government’s efforts for coping with this severe situation.
The condition of Mexico’s economy is regarded crucial for the U.S. policymakers as it underlies several reasons, considerably because they are both democratic neighboring countries who think in the best interest of each other. Both countries share strong, economic, social and political association amongst them which have provided the policymakers strong background and support. The policy changes which take place between these countries have direct impact on the trade, migration, competitiveness and border security. The global financial crisis which started in 2008 made a huge impact on U.S. economic downturn and also affected the dependence on the U.S. trade market. The economic reforms initiated over the last 20 years have assisted Mexico to fight with the economic downturn and for further improving their condition in 2010. However the complete economic sustainability depends on U.S’s. economic recovery and their ability to sustain the financial growth (Meredith and Towe).
During the initial 1990s period the Mexican economy was in a stable condition and appeared to be healthy. Luckily the debt crisis of 1980s and 1982 provided a boost to Mexican economy as their oil prices started reducing which directed the economy revolving. The overall effect of this was evident from the inflation which reduced substantially and ...Download file to see next pagesRead More
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