This paper analyzes the degree of Mexico’s global integration focusing on trade, ignoring other characteristic aspects of globalization, for example, migration and free capital mobility. Specifically, three aspects of international trade will be taken as indicators of globalization grade: Trade strategy, tariff level, and openness ratio. Finally, the main research questions that this paper poses are the following: Can Mexico be seen as a more globalized country today when we compare its trade policies in the period between 1877 and 1911 and the 21st century? Or did Mexico fall under the recent “wave of protectionism”?
In economic history, the period right before World War I, which is frequently known as the first wave of globalization, is the time when most of the developed economies went through a trade liberalization process. On the one hand, this fact makes it interesting to look at Mexico during the Porfiriato (1877-1911), since the country was also experiencing a pro- found reformation of its economy after 300 years of colonialization history and decades of turbu- lences after independence. During recent years, principally after the global financial crisis in 2007- 2008 on the other hand, the voices of trade protectionism became lauder, especially considering the use of tariffs as a political sanction of the current President of the United States, Donald Trump (Kommerskollegium, 2016, p. 2; Bundesverband der Deutschen Industrie, 2020). Therefore, this paper aims to briefly investigate if the new “wave of protectionism” also reached Mexico.
Table of Contents
1. Introduction
2. Brief historical background of the Mexican modern economy until 1877
3. Trade policies in Mexico 1877 – 1911
4. Trade policies in Mexico in the 21st century
5. Comparison between the two periods
6. Conclusion
7. References
8. Appendix
Objectives & Research Scope
This paper examines the evolution of Mexican trade policies by conducting a comparative analysis between the era of the Porfiriato (1877–1911) and the 21st century to determine the degree of global integration and the country's susceptibility to protectionist trends.
- Evolution of trade liberalization strategies in Mexico.
- Assessment of tariff levels and their role in fiscal policy.
- Evaluation of the openness ratio as an indicator of global integration.
- Comparison of multilateralism versus regionalism in trade relations.
- Analysis of the impact of major trade agreements such as NAFTA.
Excerpt from the Book
3. Trade policies in Mexico 1877 – 1911
The period between 1860 and the first World War is known as the first wave of globalization. During this period the worldwide trade flows increased rapidly while the international capital flows were also relatively free. The first wave of globalization represented an expansion in terms of international integration and liberalization policies after a period markedly characterized by protectionist trade policies. The leading economy at that time was Great Britain with periods of rapid growth since the country could exploit the manufacturing and transportation technology developed during the industrial revolution. One of the fundamental steps taken for free trade within Europe was the free trade pact within Great Britain and France in 1860. Calculated over the entire 19th century the trade flows within Europeans countries boosted by a growth rate of 40%. But the first globalization wave was not only a European phenomenon. North America was also strongly affected by this wave of internationalization (Johnson, n.d.). Simultaneously, the gold standard system also turned trade patterns more predictable, making exchange rates less volatile and thus benefiting trade flows especially between Europe and the United States.
Throughout all Latin American countries, liberalism was strongly related to increased exports (Russell, 1977). The period between 1870 and 1911 is historically known as the “Latin America Golden Age”, a time characterized by political stability, economic growth and stable trade partners since no major conflicts took place neither in Europe nor in Latin America. Although the exports of the main Latin American economies were primarily based, modest industrialization began to develop (Cardoso & Helwege, 1995, p. 40 et seqq.).
Summary of Chapters
1. Introduction: Presents the scope of the study, comparing Mexico's global trade integration during the Porfiriato and the 21st century to address potential shifts toward protectionism.
2. Brief historical background of the Mexican modern economy until 1877: Analyzes the colonial economic structures, the impact of independence, and the transition toward early modern economic policies before 1877.
3. Trade policies in Mexico 1877 – 1911: Evaluates the trade strategies, tariff levels, and the expansion of infrastructure like railways that facilitated integration during the Porfiriato.
4. Trade policies in Mexico in the 21st century: Discusses Mexico's re-orientation toward global markets, the role of NAFTA, and current trade agreements in the context of the third wave of globalization.
5. Comparison between the two periods: Synthesizes the differences and continuities in trade strategies and openness between the 19th century and the contemporary era.
6. Conclusion: Summarizes that Mexico is more globalized today despite historical dependencies, and notes that it has resisted recent global protectionist trends.
Keywords
Globalization, Trade Policy, Porfiriato, Mexico, NAFTA, Protectionism, Tariffs, Openness Ratio, International Trade, Economic History, Export-oriented Strategy, Regionalism, Multilateralism, Foreign Direct Investment, Liberalization.
Frequently Asked Questions
What is the core focus of this research paper?
The paper investigates and compares the Mexican trade policy and its integration into the global economy during two distinct historical periods: the Porfiriato (1877–1911) and the 21st century.
What are the primary thematic areas explored?
The study focuses on three key trade indicators: trade strategy, tariff levels, and the openness ratio, while contextualizing these within the broader historical waves of globalization.
What is the main research question of this study?
The research asks whether Mexico can be considered a more globalized country today compared to the Porfiriato era, and whether the country has succumbed to the recent "wave of protectionism."
Which scientific methods are utilized?
The author uses a comparative historical and economic analysis, utilizing trade data, tariff records, and trade-to-GDP ratios to evaluate the degree of openness across the two centuries.
What does the main body of the text cover?
It covers the historical transition from colonial economic structures to the Porfiriato, the shift toward neoliberal policies in the 1990s, the significance of NAFTA, and a detailed cross-period comparison.
Which keywords best describe this work?
Key terms include globalization, trade policy, Porfiriato, Mexico, NAFTA, protectionism, tariffs, and openness ratio.
How did the construction of railways impact trade during the Porfiriato?
Railways were critical in lowering transport costs to harbors and borders, specifically facilitating increased trade and commercialization with the United States.
What were the primary motivations for Mexico's trade liberalization in the 1990s?
The motivations included improving living conditions, reducing dependency on the US market, and expanding market access globally through agreements like NAFTA.
Did Mexico follow the recent global trend of protectionism?
No, the study concludes that Mexico did not opt for protectionist measures in terms of applied duties and maintained a steady or increasing openness ratio in recent years.
- Arbeit zitieren
- María Belén Ortíz Torres (Autor:in), 2020, Globalization and trade policies in Mexico. Comparison of two periods 1877-1911 and the 21st century, München, GRIN Verlag, https://www.grin.com/document/992298
