Mexico Pest Analysis Essay

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Mexico PEST Analysis

Executive Summary
Mexico has resulted in recent years as one of the most promising emerging economics nevertheless the downturn occurred in 2009 under the influence of the crisis in the United States. In 2010 the economy has restarted its growth trend, which according to the forecast will bring the Country among the elites of world economy. This short paper explains the fundamental factors determining Mexico economic growth using the PEST Analysis Framework. In particular it focus on how International Business activities has contributed to economic development of the Country, offering also an once-over on the main industry involved in this process.

Mexico PEST Analysis
Introduction
Approaching the research …show more content…
In particular the main manufacturing industries are automotive and oil. The first is considered one of the best export platforms to meet global demand for smaller, cheaper cars, and motor and in next four years could experience a significant period of growth thanks to announced investments of US$4.4 billion (Euromonitor International, September 2011). The oil industry generates over 10% of the country's export earnings and 40% of all government revenue. Pemex, the state oil company, is the world's fifth largest oil company. However even if it still remain a monopoly of the Government for its fundamental importance for Mexican government budget, in 2008 the energy reform passed by the Mexican Congress gave the company more budget autonomy and transparency (Library of Congress, July 2008).
Tourism is also an important sector, providing employment for more than 13% of the work force, but in recent years suffered several problems which resulted in a fall of revenues by 4.5% in 2010 (Euromonitor International, September 2011).
S – Social Environment
Mexico is the most populous Spanish-speaking country in the world and the second most-populous country in Latin America after Brazil (Bureau of Western Hemisphere Affairs, December 2010). Its population has grown at an average rate of 1.3% from 1990 to 2010, when Mexico counted 109.0 million people. Population growth is
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