Comprehensive Analysis Outline Team A: Jaime Borgarin, Julian Contreras, Ibeth Sanchez MGT/448 Global Buisness Strategies May 11, 2012 Professor Quinton Murphy I. Region Analysis A. Regional Alliances and Economic Integration 1. NAFTA 2. United States B. Physical Environment and its Affect on Trade 1. Close Proximity to the U.S. 2. Access to Oceans C. Political Stability 1. Authoritarian Law 2. Democratic Desires D. Economic Conditions 1. Weak Economy 2. Weak Financial Markets E. Finance Options Available 1. Foreign Owned Banks F. Social Health and Environmental Conditions 1. Little Regulation 2. Pollution G. Terrorism Threats 1. Lack of Terrorism 2. High Rate of Violent Crimes 3. Drug Trafficking
II. Country Analysis A. Political stability
1. Relatively low geopolitical and domestic political risks in Mexico will increase over the long-term.
2. The war on terrorism has already tightened US border security and immigration rules, opening an important social safety valve for Mexico.
3. Hardening US counter-drug policy in Mexico could heighten already high social tensions.
4. Domestic political risk will increase by continued weak governance.
B. Economic conditions
1. Economic growth will remain around one percent this year and next year.
2. The chances of a sharp economic downturn are a concern with the weakened economy.
3. High fiscal risk, as measured by the public sectors growing debt burden, will remain high over the long-term.
