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Institute of Management STUDIES (2017-19) : International Finance

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INSTITUTE OF MANAGEMENT

STUDIES(2017-19)
INTERNATIONAL FINANCE

MBA(FA)
OVERVIEW OF STRATEGIC ANALYSIS OF INTERNATIONAL BUSINESS

OF MEXICO

SUBMITTED TO:- SUBMITTED BY:-


DR. YAMINI VIPIN KUMAR JAIN 64218

KARMARKAR KARUNA KARNWAL 64145


Introduction
• Mexico is a federal republic in the southern half of North America. Mexico has
the fifteenth largest nominal GDP and the eleventh largest by purchasing power
parity. 
• Mexico, officially the United Mexican States, is a country in the southern portion
of North America. It is bordered to the north by the United States; to the south and
west by the Pacific Ocean; to the southeast by Guatemala, Belize, and the
Caribbean Sea; and to the east by the Gulf of Mexico. Covering almost 2,000,000
square kilometers, the nation is the fifth largest country in the Americas by total
area and the 13th largest independent state in the world.
• Mexico is rich in natural resources, like oil, silver, copper, and agricultural
products. Its economy boasts a rich diversity of agricultural crops, highly
productive oil fields, a growing manufacturing base, as well as strong trade with
the United States and Canada.
Economic overview :-
GDP
YEAR GDP PER GDP (USD)bn INFLATION UNENPLOY- EXCHANGE
CAPITA (USD) RATE % MENT RATE RATE (USD)
2015 9654 1168 3.14 4.0 17.18
2016 8804 1076 2.60 3.4 20.73
2017 9325 1152 5.35 3.1 19.65
2018 10021 2199 5.04 3.44 19.22

Balance of payment
Year Current a/c Government debt

2016 -19.35 450.2 bn$

2017 -15.31 445.8 bn$


• Exchange rate policy of
Mexico
The Foreign Exchange Commission, made up of
officials from the Ministry of Finance and Banco
de México, is responsible for foreign exchange
policy in Mexico. At the end of 1994, the
Commission determined that the exchange rate
would be determined by market forces (floating
exchange rate/free float regime). This section
includes indicators and data on operations most
frequently used by exchange rate analysts.
MAJOR MNCs IN MEXICO :-
1.América Movil :-América Móvil is a telecommunications company with a market share above 70%.
Market Cap.: MX$ 922.16 Billions – Stock Symbol: AMXL
2.Walmart de México:-Walmart de México also known as Walmex, is the largest subsidiary of Walmart
outside the United States Market Cap.: MX$ 870.99 Billions – Stock Symbol : WALMEX
3. Fomento Economico Mexicano :- operation as FEMSA, is a multinational beverage and retail
company. Owning 48% of Coca-Cola FEMSA, FEMSA is also involved in retail.
Market Cap.: MX$ 581.12 Billions – Stock Symbol: FEMSAUBD
4.Grupo México:-Grupo :- is the largest mining company from Mexico, also involved in rail transportation
and infrastructure through its subsidiary, GMexico Transportes. 
Market Cap.: MX$ 324.44 Billions – Stock Symbol: GMEXICOB
5. Grupo Financiero Banorte:- commonly known as Banorte, is a leading financial institution in Mexico. 
Market Cap.: MX$ 265.08 Billions – Stock Symbol: GFNORTEO
MAJOR EXPORT & IMPORT
EXPORT - $406.5 billion (2017 ) IMPORT-$417.3 billion (2017 )
• Export goods- • Import goods -
automobiles, electronics, televisions, compute
metal working machine, steel mill
rs, mobile phones, LCDs, oil and oil
products, agricultural machinery, metals, repair
products, silver, fruits, vegetables, coffee, 
parts for motor vehicles, aircraft, and aircraft
cotton.
parts, oil production equipment
• Export partners- • Import partners-
• US-80.3%,
• US-49.0%,
• Canada-2.7%, • China-16.6%,
• China-1.5%, • Japan-4.4%,
• Spain-1.5%, • Germany-3.4%,
• Brazil-2.1% • South Korea-3.4%
MEMBERSHIP IN INTERNATIOANAL ORGANISATION
1. OPANAL – Agency for prohibition of nuclear weapons in Latin America and the
Caribbean
2. CAN- Andean Community of Nations
3. WTO- World trade organization
4. GATT- General agreement on tariffs and trade
5. APEC – Asia-pacific Economic Cooperation
6. BIS – Bank for International Settlements
7. NAFTA – North America Free Trade Agreement
8. OECD – Organization for economic Cooperation and Development
9. UN- United Nations
10. G8+5- founded in 2005
11. G20- founded 26th sept. 1999
12. Pacific Alliance.
Contribution in international trade
• Mexico exported approximately $US 406 billion
worth of goods.
• The leading Mexican export went to the USA and
was motor vehicles. It was valued at $US50.5 billion.
• Mexico imported approximately $US 417.3 billion
worth of goods.
• The leading Mexican import was from USA and was
motor vehicle parts. It was valued at $US23.8billion.
• Mexico is the 12th largest exporter in the world. In
2017, the United States received 79 percent of
Mexico's exports. Trade with the United States and
Canada has tripled since NAFTA's signing in 1994.
More than 90 percent of Mexico's trade is under
12 free trade agreements. Mexico has
agreements with 46 countries, more than any other
nation.
Future in international business:-

• Mexico grew from the ninth to the seventh largest auto manufacturer in the


world between 2010 and 2015. It's the fourth largest auto exporter. It recently
surpassed Japan as the second-largest U.S. auto parts exporter.
• Mexico is the world's eighth largest producer of oil, at almost 3 million barrels
per day.
• Mexico's trade agreements allow its manufacturers duty-free access to 60
percent of the world. That benefit attracts foreign factories. 
YO U
N K
H A
T

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