Name: Alexandra Margarita Martínez Hernández Id : 2820011

Course name: Professor’s name:

International environments and Alejandro José Jiménez Solano
business operations
Module :1 Activity: 2

Date: February 6, 2020

Bibliography:

Answer these questions:

1. Mexico has always portrayed itself as one of the most pro-trade countries in
the world. For instance, we have a free trade agreement with the United States
and Canada, and another one with the European Union. We are active
members of the WTO, the OECD, the APEC, the Pacific Alliance, and have
also signed multiple bilateral agreements with many nations, most of them
deemed “strategic”. Answer the next two questions in your own words:
1. What are the potential costs and benefits of adopting such a free
trade strategy?

World trade has grown tremendously in recent years and all this thanks to
technological advances that have streamlined the means of payment,
distance negotiations, insurance, etc. And it has also grown by free trade
agreements and agreements that are signed between companies, nations
and groups of nations either regionally or globally.

2. What can it be done to reduce these costs and maximize those

benefits?

Low the customs duty, because with these the products imported from other
countries will be cheaper.

2. Drawing upon the new trade theory and Porter's theory of national
competitive advantage, outline the Mexican case for one of these national
industries: (1) oil and petrochemicals, (2) agriculture and foods, (3) mining, (4)
manufacturing, (5) automotive, (6) entertainment and sports. Choose only
oneout of the six, and answer:
 1. What kind of trade and economic policies would you
recommend that the federal government adopt in order to build
national competitive advantage in that specific industry?

Mexico have fertile land ang have a big production in agriculture so, I would
do a trade with other countries that doesn’t have enough fruit production to
satisfy their people.

2. Do your policies support the basic free trade philosophy? Why,

or why not?

Yes, because it will help to grow the Mexican economy.

3. Read Objective 5.3 of Mexico’s current Plan Nacional de

Desarrollo(attached).
1. What’s in there? How does the Mexican government frame the
issue of international trade according to the theories we reviewed?

The purpose of Plan Nacional de Desarrollo is that the trades get finalized
and that they get concretized in the way it has to be, following them to the
letter.

2. Write a quick analysis covering all of these elements (if

applicable):what’s Mexico’s best economic interest; absolute or
comparative advantages; specialization in production of goods; efficiency
and supply chains; unrestricted and unregulated trade; National gains from
trade and economic growth; Mexico’s factor endowments and domestic
demand; economies of scale; the role of firms and private companies; what
is next in the foreseeable future.

The economic interest in here is the agriculture, all the fruits and vegetables
that are send to other countries benefit Mexico to the economy.

We take advantage in these because the weather is very positive to this

situation.

4. The governor of the Mexican state you currently live in wants to know what
this Trans-Pacific Partnership is all about, and why is it relevant to the state’s
economy. Then, let’s just suppose that the governor just hired you to answer
that question, very concisely, in a one-page document that covers these three
sections:
 1. What is the TPP, and why is it important for Mexico to partake in
it?
1. For guidance, please check out the attached documents and
hyperlinks.
2. To what extent is the TPP relevant to that specific state’s
economy?
3. Which local industries and big firms within the state should be
concerned with the economic impact of the TPP?Frame your analysis in
terms of local comparative advantage, the specialized production of goods
across the state, and some examples of local economies of scale (if
applicable).

The TPP (Trans-Pacific Partnership) is composed of 12 countries: New Zealand,

Peru, Vietnam, Australia, Singapore, Brunei, Malaysia, Mexico, Chile, Canada,
Japan and the United States. The purpose is to solve issues that affects the global
commerce and investments.

It is important because it gives the opportunity to get to know to foreign and new
markets, also to companies that can invest in the country, so with these the
economy increases.

With these trades will be easier to import and export, also the products would be
cheaper and more affordable.