The Impact of Multinational Corporations on Mexico Essay

The Impact of Multinational Corporations on Mexico Essay

Length: 1099 words (3.1 double-spaced pages)

Rating: Strong Essays

Open Document

Essay Preview


Latin America has seven big economies Brazil, Mexico, Argentina, Venezuela, Colombia, Chile and Peru. The largest economy can be shown as Brazil. Mexico is the second largest economy in Latin America and expanded at a strong pace for most of 2011 but started to show signs of slowly decelerating. Result to that seems to be multinational firms. The multinational firms set up their factories to Mexico to reduce the cost of production. Although the multinational firms seem to be helping the Mexico economy, they also harm the domestic firms. The question has to be asked that how does production of manufacturing goods & services by domestic or multinational affect a country’s economy?
First of all, we have to mention about the Mexico’s economy briefly. Mexico locates in the Central America and has GDP over one trillion. Some of the countries locate in Central America as well as Mexico, are Guatemala, Panama, El Salvador, Honduras, Nicaragua and Belize. These countries are very poor in GDP and very low income compared to Mexico. Mexico also has a higher income level refer to the GDP per capita. Mexico’s GDP growth over the last year is 4%. What is GDP and why is it so important for a country? GDP represents the output of all final goods& services produced in an economy during a year. It is important because it reflects the situation of economy by all final goods& services produced in an economy so that the governments can foresee the economic situation of a country. There is also another variable that can show economic evaluations which is GNI. According to World Bank, Mexico’s GNI is also over one billion however since their population is high, GNI per capita is less compared to the other Latin American Countries. GNI per capita i...


... middle of paper ...


...m competition by the Mexican government through tariffs are no longer protected. Because a very large percentage of Mexican manufacturers are small with fewer than 250 workers, some of them have not been able to withstand the pressures of competing in an international marketplace. However, the increase in manufacturing output over the past 5 years suggests that the surviving manufacturers are doing well.


Works Cited

• Retrieved data on 5 May, from www.worldbank.org
• Retrieved data on 5 May, from http://www.nationsencyclopedia.com/economies/Americas/Mexico-OVERVIEW-OF-ECONOMY.html
• Retrieved data on 6 May, from http://geo-mexico.com/?tag=trade
• Retrieved data on 9 May, from http://www.iie.com/publications/chapters_preview/332/06iie3349.pdf
• Retrieved data on 9 May, from http://www.nationsencyclopedia.com/economies/Americas/Mexico.html#ixzz2TF51a352

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

The Multinational Firm : Strategic, Organizational, And Organizational Structures

- The multinational firm possesses certain kinds of advantages that set it apart from purely domestic firms. And there are lots of management strategies and organizational structures involved in maximizing its advantages relative to local firms in the foreign countries in which it operates, because there are lots of sociopolitical issues that it needs to attend to in order to successfully operate in a foreign market. Increased attention to the fundamental economic, strategic, organizational, and sociopolitical principles of multinational management is proposed as the best way to avoid the costly mistakes that may be made because of the greater speed of international business resulting from gl...   [tags: Multinational corporation, Globalization]

Strong Essays
2415 words (6.9 pages)

Essay on Multinational Corporations : Mncs Or Transnational Corporations

- Multinational corporations also called MNCs or transnational corporations, it is a registered company that operates in multiple nations. “A multinational is a firm has its headquarters in one country and branches, manufacturing or assembly plants in others. In other words, it is mot just an exporter. It has business operations in several countries.” (Surridge, 2014) To be more simply, any company that gained a quarter of company’s revenue comes from domestic are called multinational corporations....   [tags: Multinational corporation, Corporation]

Strong Essays
1400 words (4 pages)

The Impact of Multinational Corporations (MNCs) on Developing Countries Essay

- Introduction Multinational corporations (MNCs) are huge companies that operate in several parts of the world. MNCs are truly to be global in nature as these conduct tasks with no single national emphasis. These corporations have the ability to stimulate the flow of investment, technology and profits in the countries in which their subsidiaries reside. Multinational corporations are mobile in nature, as they tend to establish companies in countries where conditions are most favorable to their business operations....   [tags: Multinational Corporations (MNCs)]

Strong Essays
963 words (2.8 pages)

The Impact of Multinational Corporations (MNCs) on Developing Countries Essays

- Multinational enterprises date back to the era of merchant-adventurers, when the Dutch East India Company and the Massachusetts Bay Company traversed the world to extract resources and agricultural products from colonies (Gilpin 278-79). While contemporary multinational corporations (MNCs) do not command the armies and territories their colonial counterparts did, they are nevertheless highly influential actors in today’s increasingly globalized world. Gilpin discussed the MNC’s evolution through the lenses of a number of business economic theories....   [tags: Multinational Corporations (MNCs)]

Strong Essays
1004 words (2.9 pages)

Globalization And Globalization Of Multinational Corporations Essay

- Word Count: 2660 Globalization Technology is a huge part of today’s society and it is helping the world come together in many ways. Because of technology, and what it is capable of, our world is becoming globalized. Because of globalization, multinational corporations are quickly changing how they do business and this is impacting how financial management is conducted. For a better understanding, this report will discuss the pro’s and con’s that technology has on the globalization of multinational corporations, as well as how it is changing MNC’s financial management....   [tags: Globalization, Multinational corporation]

Strong Essays
2779 words (7.9 pages)

Multinational Corporations and the Destruction of the Family Essay

- The pursuit of the bottom line is the goal of many businesses of a variety of sizes. The ability to buy cheaply, sell dearly and minimize costs across the board gives businesses an edge that allows them to create vast amounts of wealth for those with a stake in the business or corporation, but at what cost. Multinational corporations create great deals wealth but they propagate social and cultural inequality, poverty and environmental damage at rates to rival their gains. Multinational Corporations wield incredible amounts of political and economic clout, clout that allows them to manipulate a region without fear of recourse on the part of the localities in which they reside....   [tags: Multinational Corporations (MNCs)]

Strong Essays
1560 words (4.5 pages)

The Impact Of Globalization On Multinational Corporations Essay

- Globalization has been a major impact when it comes to the Global economy, which is changing every day. Globalization has enabled many businesses to outsource their corporation across their home country border in order to increase their wealth and maximize their production at a lower cost. The outsourcing as cause these businesses to become Multinational corporations (MNCs), which are becoming major contributors to many nations global economy. Multinational corporations can be seen as a global crisis because of the results of globalizations....   [tags: Globalization, Corporation]

Strong Essays
1479 words (4.2 pages)

International Factors and Multinational Corporations Essay

- Regional Trade Agreements and Global trade liberalization are common terms that are used to analyze different market structures in the market. According to international economics, RTAs (Regional Trading Agreements) are the agreements in which members give each another privileged treatment with respect to the extent by which the trade barriers have been established. On the other side, Global Trade liberalization is a general term referring to the depletion of trade boundaries globally to ensure free trade among all state....   [tags: Multinational Corporations (MNCs)]

Strong Essays
1712 words (4.9 pages)

History of Multinational Corporations Essay

- The progression and evolution of international business has played an integral role in the overall development and progress of the world economy, culture, and politics. The multinational corporation was an essential part of this process and has roots as far back as the 15th and 16th centuries in Western Europe, specifically in the nations of England and Holland, during a period known as mercantilism. This was a time of unprecedented global exploration, colonization, and other imperialist ventures....   [tags: Multinational Corporations (MNCs)]

Strong Essays
2012 words (5.7 pages)

The Importance of Multinational Corporations Essay

- What are MNCs. Multinational corporations (MNCs) are another type of nongovernmental actor and are private businesses headquartered in one state that invest and operate extensively in other states. They are sometimes called transnational corporations or international corporations. Much controversy surrounds MNCs. There are many individuals and organisations who have critical and negative views about MNCs, and then of course there are those who support them. MNCs generate enormous global sales -- approximately $5.2 trillion pa....   [tags: Multinational Corporations (MNCs)]

Free Essays
882 words (2.5 pages)