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Assignment 2

The document is a report submitted by Victor Moreno for his International Environments and Business Operations course. It addresses several topics related to Mexico's trade strategies and policies. In the report, Victor analyzes the potential costs and benefits of Mexico's free trade strategy. He recommends policies to maximize benefits and reduce costs, such as not getting involved in unbeneficial trades and renegotiating existing deals. Victor also outlines Mexico's competitive advantage in the manufacturing industry and how trade policies could support building advantage. His recommended policies are in line with basic free trade philosophy. The report analyzes Mexico's national development plan related to international trade and how it frames related issues. It concludes the plan would benefit Mexican

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Victor Quiroga
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31 views

Assignment 2

The document is a report submitted by Victor Moreno for his International Environments and Business Operations course. It addresses several topics related to Mexico's trade strategies and policies. In the report, Victor analyzes the potential costs and benefits of Mexico's free trade strategy. He recommends policies to maximize benefits and reduce costs, such as not getting involved in unbeneficial trades and renegotiating existing deals. Victor also outlines Mexico's competitive advantage in the manufacturing industry and how trade policies could support building advantage. His recommended policies are in line with basic free trade philosophy. The report analyzes Mexico's national development plan related to international trade and how it frames related issues. It concludes the plan would benefit Mexican

Uploaded by

Victor Quiroga
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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Reporte

Nombre: Matrícula:
Victor Antonio Moreno Quiroga 2869724

Nombre del curso: Nombre del profesor:


International Environments and Efrain Antonio Lara Tinajero
Business Operations
Módulo: Actividad:
1 2
Fecha: 1/29/2018
Bibliografía:

1. Mexico has always portrayed itself as one of the most pro-trade countries in the
world. For instance, we have a free trade agreement with the United States and
Canada, and another one with the European Union. We are active members of the
WTO, the OECD, the APEC, the Pacific Alliance, and have also signed multiple
bilateral agreements with many nations, most of them deemed “strategic”. Answer
the next two questions in your own words:
a. What are the potential costs and benefits of adopting such a free trade
strategy?

There are many benefits in adopting free trades, for example, in Mexico we
now have the luxury to have American name brand foods like Coca-Cola,
Nesquik, Quaker oats, ruffles, Cheetos, etc. Having the benefit that the
products are cheaper thanks to the free trade agreement which eliminates or
reduces taxes.
Not all is good, majority of the Mexican customers prefer foreign products and
brings an incline to the Mexican capital which is a huge disadvantage.

b. What can it be done to reduce these costs and maximize those


benefits?

Not getting involved with trades that Mexico gets no benefit from and
renegotiate with other deals that both countries can get benefit from and
increase our economy.

2. Drawing upon the new trade theory and Porter's theory of national competitive
advantage, outline the Mexican case for one of these national industries: (1) oil and
petrochemicals, (2) agriculture and foods, (3) mining, (4) manufacturing, (5)
automotive, (6) entertainment and sports. Choose only one out of the six, and
answer:
a. What kind of trade and economic policies would you recommend that
the federal government adopt in order to build national competitive
advantage in that specific industry?
Reporte
In the industry of manufacturing, In Mexico’s case it is very cheap to
manufacture any types of products. Mexico is very rich in minerals and can
provide raw products to any company that is in need of certain minerals
Mexico can get a hug profit.

b. Do your policies support the basic free trade philosophy? Why, or why
not?

Yes, the other company will receive the raw product so they can use in their
business and will more than likely be buying it on a much lower price. Both
will be receiving benefits.

3. Read Objective 5.3 of Mexico’s current Plan Nacional de Desarrollo (attached).


a. What’s in there? How does the Mexican government frame the issue of
international trade according to the theories we reviewed? Write a quick
analysis covering all of these elements (if applicable): what’s Mexico’s
best economic interest; absolute or comparative advantages; specialization in
production of goods; efficiency and supply chains; unrestricted and
unregulated trade; National gains from trade and economic growth; Mexico’s
factor endowments and domestic demand; economies of scale; the role of
firms and private companies; what is next in the foreseeable future.

The plan of action is favorable for Mexican population and other business looking
to invest in Mexico, this will help boost the incrimination of the nations exports and
will be recognized by other countries as a skilled and hardworking country, making
others want to invest and open businesses in Mexico.

4. Case. The governor of the Mexican state you currently live in wants to know what
this Trans-Pacific Partnership is all about, and why is it relevant to the state’s
economy. Then, let’s just suppose that the governor just hired you to answer that
question, very concisely, in a one-page document that covers these three sections:
a. What is the TPP, and why is it important for Mexico to partake in it?
1. For guidance, please check out the attached documents and
hyperlinks.

The Trans-Pacific Partnership TTP is a secretive, multinational trade


agreement that threatens to extend restrictive intellectual property laws across
the globe and rewrite international rules on its enforcement. Mexico is in a
position to help determine what those regulations consist of rather than having
to adjust to a global playbook that has been imposed upon it,

b. To what extent is the TPP relevant to that specific state’s economy?

It is very important that Mexico gets known for its hard work and fast-growing
economy. It will open new markets and will have foreign companies wanting to
invest in Mexican soil due to the fact that it may be cheaper to produce their
products maintaining the company’s economy balanced while Mexico’s
economy is being increased with all the investments done.
Reporte
c. Which local industries and big firms within the state should be
concerned with the economic impact of the TPP? Frame your analysis in
terms of local comparative advantage, the specialized production of goods
across the state, and some examples of local economies of scale (if
applicable).

There are car manufactures here in the state and it faces with huge
competitors with huge companies representing a huge challenge for the car
manufacture in the state and for mexcio in the TTP, they must seek a balance
in terms of trade with the TPP members by defining and ensuring that key
sectors and industries in the Mexican economy are even more competitive.

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