Mexico Versus venezuela research paper - Essay Example

Economic Problems Facing Mexico and the Consequent Economic Policies. Mexico is facing many economic challenges each passing day. Unlike in the past where Mexico used to manufacture same product lines with the United States, China has soared up as a big threat. China and Mexico compete head to head regarding manufacturing of products. The Chinese production values and labor costs are becoming a little bit difficult for Mexico to bear the share of USA and global markets (Farmer, 148). Another economic challenge is that Mexico oil wealth is running out.

It is approximated that Mexico has nine years left of oil reserves. Almost 40% of the country budget is brought up by oil revenue. Another economical problem is that most of the country’s commercial bank assets are by the financial institutions of the U.S. This shows that Mexico is solely dependent on their neighbors in the top. If the economy of U.S were to collapse then, Mexico is to experience a big economical problem of their history. Another big problem facing the economy of Mexico is the big existence of drug cartels in the country.

Mexico has a reputation of being the hub of drug lords to the likes of Pablo Escobar, who controlled most of the Mexico. These drugs end up ruining the youth of the country hence not being able to discharge their duties bringing a stalemate to the economy. Drug cartels bring violence to the country hence discouraging investment from foreigners in the country. In addition, these drugs bring about money laundering and this as well becoming perilous for the economy of Mexico (Krugman, 25). However, the best economic policy to this issue is by surely investing in education, infrastructure, telecommunications, energy and agriculture.

It is to protect the poorest if the U.S economy starts to slow down. The government has to come with a better way of taxing informal commerce with the financial system in order for a business to pay for public investment. Mexico should try to collaborate with other countries and stop solely depending on U.S. The Country Preferred To Live in and Why? Venezuela is the preferred country of choice. It is that Venezuela is very conscious when it comes to environmental conservation since its most territory is dedicated to the national parks and reserves.

(Soto, 47). Big airlines like Air France, British, Lufthansa, Alitalia, and Iberia all serve Venezuela hence being a good economic fare. Economic freedom score of Venezuela is at 36.3 Venezuela is also a big player in the petroleum industry. This gives it a major economic boost. The country is also the most urbanized in whole of South America (Middlebrook 98). Despite the glamour, Venezuela has been facing an economic stagnation and hence living conditions have continued to deteriorate. Institutional shortcomings have constrained economic development.

Oil has been the major boost for the country’s economy hence subsidizing the shortcomings. A large percentage is Roman Catholic followed by the Protestants. With all this attributes then it says it all that Venezuela is the queen of South America and an awe of the spectacle to the citizens and foreigners as well. ReferencesFarmer, Roger. How The Economy Works: Confidence, Crashes And Self-Fulfilling Prophecies. 1st ed. London: Oxford University Press, 2010. Print.Hadley, Arthur Twining. Economic Problems of Democracy. 1st ed. Cambridge: Cambridge University Press, 2014. Print.Krugman, Paul R.

The Return of Depression Economics. 1st Ed. New York: W.W. Norton, 2000. Print.Meeker, Ellen. Problems of Prosperity: The Negative Consequences of Economic Growth in Ireland and Quebec. 1st Ed. New York: ProQuest, 2008. Print.Middlebrook, Kevin. Comfronting Development. California: Stanford University Press, 2003.Randall, Laura. Changing structure of Mexico. New York: M.E.Sharpe,Inc, 2006.Soto, Jesús. Money, Bank Credit, and Economic Cycles. 1st ed. Alabam: Ludwig von Mises Institute, 2009. Print.