The impact of globalization on the United Mexican States

Globalization is good for Mexico, yet not for all Mexicans


Essay, 2005

12 Pages, Grade: 1,0


Excerpt


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 trade1,2, 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”3, as a reaction to “a severe balance of payments crisis”4. 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”5, 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”6 with “no serious macroeconomic problems at the horizon.”7,8

So, generally and superficially speaking, Mexico is seemingly looking at a bright future in economic terms.9

Having this said, one has also to consider that integration and globalization are based on quickly developed and implemented trade developments, slowly followed by sociopolitical and cultural effects.10

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”.11

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.12,13

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. Firstly, there have been structural adjustments taking place in Mexico, both interiorly and externally.

Mexico has constantly been restructuring both its economic relations to its neighbours, esp. the United States, and its inner structure of industries. After becoming member of the OECD14, “in 1985, Mexico joined the General Agreement on Trade and Tariffs (GATT)”15, “in 1989, [they] eased restrictions on the right of foreigners to own assets in the country”16, which were even extended by NAFTA in 1994.17 Generally, the “Estados Unidos Mexicanos” are member of two significant trade organizations, namely the North American Free Trade Agreement and the World Trade Organization (WTO)18, currently standing at the edge to signing an agreement for participation in a free-trade zone with the European Union.19

Mexico is reported to be “now as closely tied to the U.S. economy as it has been at any point in its history.”20 Approximately 90% of Mexican export activities and three quarter of imports are related to the northern neighbours.21

Increases in trade with the USA and other countries as well as an increase in total trade volume could be noticed.22,23,24,25

Naturally, this new trend means a stronger interaction with other countries not only on economic fields, but also on cultural ones. That again has different significant influences on culture in the host country, e.g. either a global mixing and, frequently, westernization in terms of language, fashion or food26 or, notably, a “local nationalism sprout”27,28 or even both simultaneously.

Mexican economy was indeed growing due to the new openness of the market. But whereas on joining NAFTA in 1994, Mexicans were hoping for an entry pass into the First World (without plenty of discussions about globalization on principle)29, they had to give up that dream for the time being because of the 1995 peso crisis which led to constantly high rates of poverty and unemployment.30

[...]


1 Wikipedia. Sept. 26th, 2005. Globalisierung (Available at: http://de.wikipedia.org/wiki/Globalisierung; visited on: Sept. 27th, 2005)

2 Von Plate B. 2003. Grundzüge der Globalisierung. Informationen zur politischen Bildung: Globalisierung. (Chapter 1: pages 3-6)

3 Weltpolitik. March 24th, 2004. Die Auswirkungen der Globalisierung auf die Länder des Südens (Available at: http://www.weltpolitik.net/Sachgebiete/Globale%20Zukunftsfragen/Entwicklungspolitik/Analysen/; visited on: Sept. 25th, 2005) 4 National Bureau of Economic

4 National Bureau of Economic Research. Gordon H. Hanson (University of California, San Diego). July 2005. Globalization, Labor Income, and Poverty in Mexico (Available at: www.nber.org/papers/w11027; visited on: Sept. 25th, 2005)

5 Business Mexico Magazine. Camila Castellanos. 2003. Foreign Interest (Available at: http://www.mexconnect.com/mex_/travel/bzm/bzmtop50-99.html; visited on: Sept. 25th, 2005)

6 The Economist. Sept. 22nd 2005. Mexico (Available at: http://www.economist.com/markets/displayStory.cfm?story_id=4424900, visited on: Sept. 27th, 2005)

7 ibidem

8 see Picture 1 in the appendix

9 see Picture 1 in the appendix

10 Conseil de l’Audiovisual de Catalunya. Laura Márquez Elenes. 2003. Mexico in the face of globalization (Available at: www.audiovisualcat.net/publicationsing/Q14mexic.pdf; visited on: Sept. 18th, 2005)

11 National Bureau of Economic Research. Gordon H. Hanson (University of California, San Diego). July 2005. Globalization, Labor Income, and Poverty in Mexico (Available at: www.nber.org/papers/w11027; visited on: Sept. 19th, 2005)

12 Weltpolitik. March 24th, 2004. Die Auswirkungen der Globalisierung auf die Länder des Südens (Available at: http://www.weltpolitik.net/Sachgebiete/Globale%20Zukunftsfragen/Entwicklungspolitik/Analysen/; visited on: Sept. 25th, 2005)

13 National Bureau of Economic Research. Gordon H. Hanson (University of California, San Diego). July 2005. Globalization, Labor Income, and Poverty in Mexico (Available at: www.nber.org/papers/w11027; visited on: Sept. 19th, 2005)

14 Associazione studenti/esse sudtirolesi. Thomas Viehwender. 2002. Mexiko. Das Musterbeispiel (Available at: http://asus.sh/mexico.236.0.html; visited on: Sept. 17th, 2005)

15 National Bureau of Economic Research. Gordon H. Hanson (University of California, San Diego). July 2005. Globalization, Labor Income, and Poverty in Mexico (Available at: www.nber.org/papers/w11027; visited on: Sept. 19th, 2005)

16 ibidem

17 ibidem

18 Conseil de l’Audiovisual de Catalunya. Laura Márquez Elenes. 2003. Mexico in the face of globalization (Available at: www.audiovisualcat.net/publicationsing/Q14mexic.pdf; visited on: Sept. 18th, 2005)

19 Business Mexico Magazine. Camila Castellanos. 2003. Foreign Interest (Available at: http://www.mexconnect.com/mex_/travel/bzm/bzmtop50-99.html; visited on: Sept. 25th, 2005)

20 National Bureau of Economic Research. Gordon H. Hanson (University of California, San Diego). July 2005. Globalization, Labor Income, and Poverty in Mexico (Available at: www.nber.org/papers/w11027; visited on: Sept. 19th, 2005)

21 ibidem

22 Embassy of Mexico in Berlin, Germany. SecoFi-Banco de México. May 2000. Handelsbilanz Mexiko – Kanada (Available at: http://www.embamex.de/economia/canada2000.html; visited on: Sept. 27th, 2005)

23 Embassy of Mexico in Berlin, Germany. Statistisches Bundesamt. May 2000. Handelsbilanz Mexiko – Deutschland (Available at: http://www.embamex.de/economia/deutch2000.html; visited on: Sept. 27th, 2005)

24 Embassy of Mexico in Berlin, Germany. Banco de México. May 2000. Handelsbilanz Mexiko – USA (Available at: http://www.embamex.de/economia/usa2000.html; visited on: Sept. 27th, 2005)

25 Embassy of Mexico in Berlin, Germany. Banco de México. May 2000. Mexiko: Handelsbilanz (Available at: http://www.embamex.de/economia/han-b99.html; visited on: Sept. 27th, 2005)

26 Wikipedia. Sept. 26th, 2005. Mexiko (Available at: http://de.wikipedia.org/wiki/Mexiko; visited on: Sept. 28th, 2005)

27 Conseil de l’Audiovisual de Catalunya. Laura Márquez Elenes. 2003. Mexico in the face of globalization (Available at: www.audiovisualcat.net/publicationsing/Q14mexic.pdf; visited on: Sept. 18th, 2005)

28 “Mexico” in Jolly A. 1998. Doing business with Latin America. Pages 150 – 161. Kogan Page. London, UK.

29 Global Development and Environment Institute, Tufts University. Eliza Waters and Tim Wise. February 2001. Community Control in a Global Economy: Lessons from Mexico’s Economic Integration Process (Available at: http://ase.tufts.edu/gdae/policy_research/CommControl.PDF; visited on: Sept. 26th, 2005)

30 ibidem

Excerpt out of 12 pages

Details

Title
The impact of globalization on the United Mexican States
Subtitle
Globalization is good for Mexico, yet not for all Mexicans
Course
Cross-Cultural Management
Grade
1,0
Author
Year
2005
Pages
12
Catalog Number
V89967
ISBN (eBook)
9783638071383
ISBN (Book)
9783640099122
File size
458 KB
Language
English
Keywords
United, Mexican, States, Cross-Cultural, Management, Globalisierung, Globalization, Mexiko, Auswirkungen, Mexikaner, Outsourcing, Auslagerung
Quote paper
Dipl.-Kfm. B.B.A. Cyril Alias (Author), 2005, The impact of globalization on the United Mexican States, Munich, GRIN Verlag, https://www.grin.com/document/89967

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