Topic > The Impact of Multinationals on Mexico

Latin America has seven major economies: Brazil, Mexico, Argentina, Venezuela, Colombia, Chile and Peru. The largest economy can be referred to as Brazil. Mexico is Latin America's second-largest economy and expanded at a rapid pace for much of 2011, but has begun to show signs of slow deceleration. The result seems to be that of multinationals. Multinational corporations establish their factories in Mexico to reduce production costs. While multinational businesses appear to help the Mexican economy, they also hurt domestic businesses. The question must be asked: How does the production of manufactured goods and services by national or multinational companies affect a country's economy? First of all, we need to briefly mention Mexico's economy. Mexico is located in Central America and has a GDP of over a trillion. Some of the countries located in Central America and Mexico are Guatemala, Panama, El Salvador, Honduras, Nicaragua, and Belize. These countries have a very poor GDP and very low income compared to Mexico. Mexico also has a higher income level in reference to GDP per capita. Mexico's GDP growth over the past year was 4%. What is GDP and why is it so important for a country? GDP represents the output of all final goods and services produced in an economy during a year. It is important because it reflects the situation of the economy through all the final goods and services produced in an economy so that governments can predict the economic situation of a country. There is also another variable that can show economic evaluations which is GNI. According to the World Bank, Mexico's GNI also exceeds one billion, however, because its population is large, its GNI per capita is lower than that of other Latin American countries. GNI per capita i...... half of the paper ......m competition from the Mexican government through tariffs are no longer protected. Because a very high percentage of Mexican manufacturers are small, with fewer than 250 employees, some of them have not been able to withstand the pressures of competition in an international market. However, the increase in manufacturing production over the past 5 years suggests that the surviving manufacturers are doing well. Works Cited • Data retrieved May 5, from www.worldbank.org • Data retrieved May 5, from http://www. Nationsencyclopedia.com/economies/Americas/Mexico-OVERVIEW-OF-ECONOMY.html• Data retrieved May 6, from http://geo-mexico.com/?tag=trade• Data retrieved May 9, from http:/ /www.iie.com/publications/chapters_preview/332/06iie3349.pdf• ​​Data retrieved May 9, from http://www.nationsencyclopedia.com/economies/Americas/Mexico.html# ixzz2TF51a352