Mexicos Economy 2009 Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Mexico had a history of repeated financial crises, high inflation leads to current account deficits with volatile capital inflows, leading to a significant devaluation. Problems persist, this pattern can be repeated in the future. In the years preceding 1980, the government of Mexico in place of the command and control of the economy with an extensive set of rules through which it intervened in the economy on a regular basis and with discretion. The Government has created barriers to foreign investment and imports and implement price controls that protect existing Mexican companies. After 1980, a number of trade and investment reforms opened the economy. However, many felt that the reform movement in Mexico stalled under President Fox (2000-2006) and extensive government intervention continued to stifle competition. Exhibits of macroeconomic data, as well as the World Bank's investment climate indicators. A number of problems now faced by Mexico, including the U.S. financial crisis and recession, competition from China, the appropriate monetary policy, opening up oil production to foreign companies and the growth of corruption and violent crime. "Hide
by David W. Conklin, Daniel Cadieux Source: Richard Ivey School of Business Foundation 4 pages. Publication Date: December 9, 2008. Prod. #: 908M84-PDF-ENG