The impact of globalization on the United Mexican States

Essay from the year 2005 in the subject Business economics - Miscellaneous, grade: 1,0, Hogeschool Rotterdam (Rotterdam Business School), course: Cross-Cultural Management, language: English, abstract: Mexico has gained increasing significance in both regional and international business, due to the phenomenon generally known as globalization or mundialización, as Mexicans prefer to name. Globalization is explained as an increase of international economic and socio-cultural relations, especially in terms of supra-regional trade , , driven particularly by technology and media. In 1982, Latin America has started executing a wide opening of its markets and a 'quick liberalization of the latter' , as a reaction to 'a severe balance of payments crisis' . Over the years, its geo-strategic position between North and South America as well as the globalization 'have made Mexico the darling of the international business community' , at least one of the many beneficiaries in Latin America, Asia and Eastern Europe. Most recently, 'The Economist' certified Mexico's economy to be 'in good shape' with 'no serious macroeconomic problems at the horizon.' , So, generally and superficially speaking, Mexico is seemingly looking at a bright future in economic terms. Having this said, one has also to consider that integration and globalization are based on quickly developed and implemented trade developments, slowly followed by socio-political and cultural effects. Yet, the economic rise following the measures mentioned above has had several drawbacks, such as 'three currency crises, [...] the most recent of which occurred in 1995 following a large devaluation of the peso'. Effects of the integration development of the previous two decades were presented as mainly positive in the public, especially by lobbyists and groups favouring the current trends. However, there has been a large group of losers, which has not participated in the economic upswing of the country yet and probably will not for quite a long period of time. As a proof, one can consult different statistics about poverty increase in the country. , So, finally I want to analyse and, by weighing pro and contra arguments, possibly prove the thesis that there have been many advantages created and put into action by globalization, but that many Mexicans have not yet been included into the advantages of it yet. In order to carry this out, I am going to look closer at different forces of globalization acting upon Mexico as well as the different stakeholder groups representing the various interests involved nowadays in the overall development of the country.