Mexico had a history of repeated financial crises with high inflation leads to a deficit with volatile capital inflows that. Culminating in significant write-downs Concerns that this pattern could be repeated in the future. In the years before 1980, the Mexican government had put in place a command and control economy with an extensive set of rules by which they intervened in the economy constantly and with discretion. Governments crea … Read more »

Mexico had a history of repeated financial crises with high inflation leads to a deficit with volatile capital inflows that. Culminating in significant write-downs Concerns that this pattern could be repeated in the future. In the years before 1980, the Mexican government had put in place a command and control economy with an extensive set of rules by which they intervened in the economy constantly and with discretion. Governments created entry barriers to foreign investment and imports and put in place, the existing price controls Mexican companies protected. After 1980, opened a number of trade and investment reforms of the economy. Nevertheless, many expressed the view that Mexico’s reform movement under President Fox (2000-2006) stalled, and that extensive government intervention continue to stifle competition. Exhibits present macroeconomic data and World Bank Investment Climate Indicators. A number of challenges now Mexico, including the U.S. financial crisis and recession, competition with China, appropriate monetary policy, opening to foreign oil companies and an increase in corruption and violent crime.
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from
David W. Conklin,
Danielle Cadieux
Source: Ivey Publishing
4 pages.
Release Date: 9 December 2008. Prod #: 908M84-PDF-ENG
Mexico’s economy in 2009 HBR case solution

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