Economic Life

Agriculture and Extraction

Mexico is one of the top producers of crops in the world.

Crop production accounts for 50% of Mexico's agricultural output, and is the most important agricultural activity in Mexico. Fruits and vegetables are the most economically significant agricultural products exported by Mexico, due to the climate and land encompassed by the region.

Livestock on the other hand accounts for about 30% of Mexico's agricultural output. The livestock most predominantly produces eggs, milk, poultry, and beef. The northern part of Mexico has been considered the most important ranching area in the country since the Mexican War of Independence.

Mexico is a major oil producer and exporter. Mexico is the 6th largest crude producer of oil, and the 10th largest exporter. Declining reserves and production along with a gradual increase in consumption could turn Mexico into a net oil importer within the next decade.

Manufacturing and Service Industries

There are a variety of major manufacturing industries in Mexico, these industries include:

Aerospace
One of the three largest industries manufacturing in Mexico today. This industry has proven to be extremely lucrative and will create more than 35,000 jobs over the next five years. Mexico has become the location of choice for aerospace companies seeking a low-cost manufacturing footprint in North America.

Automotive

Automotive is rapidly growing in Mexico. Large auto companies, such as Nissan and Mazda, are fueling this growth by establishing manufacturing plants throughout the country. Mexico could be considered one of the most diverse automotive markets in the world.

Clean Energy
Solar and wind turbine industries are two of the many growing industries manufacturing in Mexico. The solar industry in Mexico is viewed by analysts as possibly the best location in North America due to the area of land in hot sunny regions, its extensively diverse labor pool, and its proximity to the United States. If less than one percent of Mexico's land was developed for the purpose of solar energy, it could provide enough power to sustain the entire nation.

Electronic

With a majority of Mexico's electronic production located near the United States border, the electronics industry was one of the first to begin manufacturing in Mexico. Tax incentives, training programs and special agreements has been the driving factor behind Mexico manufacturing. With programs to help the growth of manufacturing, a well-trained, young workforce is available to companies who want to manufacture in Mexico.

Industrial
Similar to the electronic manufacturing, industrial manufacturing plants are mainly located near the U.S. boarder for easy exportation. This includes assembling components and manufacturing raw materials.

Textiles

Textile manufacturing in Mexico accounted for many maquiladora operations along the border until the late 1990’s and early 2000’s. Specialty textiles for the filter, automotive and medical device industries continue to expand in Mexico. More textile manufacturers are once again exploring Mexico as a viable option due to hyperinflation in China. Now that the minimum wage in Mexico is competitive with China, clothing manufacturers are “re-shoring” their operations back to Mexico.

The manufacturing industries of Mexico are all quite competitive and rapidly growing throughout the nation. Among the industries listed Electronics, Medical Devices, and Metal Mechanics are also large manufacturing industries in Mexico.

Economy and Development

The expansion of economic activity will rely on growth of private consumption and investment, with an increase in manufacturing exports following the significant real exchange rate adjustment and robust growth in the U.S. eventually providing additional support.

A complicated global environment will continue to weigh on Mexico’s economic growth prospects. The Mexican authorities have already signaled their commitment to appropriate fiscal and monetary policy tightening aimed at maintaining macroeconomic stability.

Main Challenges

Today, Mexican manufacturers compete head-to-head with China's, often in the same product lines, and despite Mexico's strategic geographic advantage close to US markets, Chinese labor costs and production volumes are making it difficult for Mexico to preserve it share if US and global markets.

Mexico has nine years left of proven oil reserves, and average daily production is falling steadily. This trend casts a worrisome shadow on the country's fiscal future, as oil revenues have traditionally accounted for some 40 percent of the government's budget.

Ninety percent of Mexico's exports and 70 percent of its imports go to and come from the United States, while some 65 percent of Mexico's foreign direct investment comes from US investors. If the American economy goes south, Mexico will not stand an independent chance.

Internet Sources:

http://www.nationsencyclopedia.com/economies/Americas/Mexico-AGRICULTURE.html

http://www.resourcegovernance.org/countries/latin-america/mexico/extractive-industries
http://www.napsintl.com/manufacturing-in-mexico/industries-in-mexico/
http://www.worldbank.org/en/country/mexico/overview

Strong Cultural History and an Unstable Government

Ethnic Make-up of Mexico

The Ethnic Make-up of Mexico is categorized into four different Ethnic groups.

These racial background includes Mestizo (Indigenous-European "Spanish" Hybrid), White, Indigenous, and other. A combination of Spanish influence onto the cultural practices of ancient people living on Mexican land created the present day ethnic diversities.

This graph shows the proportion of ethnic groups in Mexico as of 2012.

Mestizo (Ameridndian-Spanish)

62%

Predominantly Amerindian

21%

Amerinidian

7%

Other (mostly European)

10%

Although the majority of wealth and power in Mexico resides in the Mestizo population, Indigenous people are maintained through rural separation and have many spiritual practices based on traditional beliefs through customs and rituals.

Ethnic Conflicts

Since the early 1990's organized groups of indigenous peoples of Mexico have made efforts to make themselves more recognized by the larger majority of European mixed ethnicities. They request equal land agreements as well as historical recognition for the development of present day Mexico. Since then, tensions have leveled out with the advancements of globalization. Major conflicts are now contributed to the domestic disputes of drug-cartels and law enforcement agencies.

Religious Landscape

Mexico has no official, as the constitution guarantees separation between church and state. However, more than nine-tenths of the population are at least affiliated with Roman Catholicism.

During the Spanish conquest and colonization of Mexico, Roman Catholicism was established as the dominant religion of Mexico. It is the nation with the second largest Catholic population, behind Brazil and before the United States.

Although Catholicism represents the largest population of religious Mexican people, there are other religions throughout the country which are regularly practiced within its borders.

 

The graph to the left shows the religions with the largest numbers of followers, the top three include:

Roman Catholic

75%

Unspecified

13%

Other

7%

Protestants and people of no religious affiliation also comprise the majority of beliefs in Mexico.

Religious Issues

Although there have been religious disputes in the past, mainly concerned with the techniques of Spanish domination in early settlements of Mexico, the present day practices of different religions is widely accepted. The syncretism of indigenous practices and European Catholicism fused together to blend present day culture and past traditions.

Form of Government

Mexico, or Estados Unidos Mexicanos; which translates to the United States of Mexico, is a federal republic operating under a centralized government. Governmental powers are divided between executive, legislative, and judicial branches. The president is elected by popular vote for six-year terms and holds great discretionary power. Mexico's current president is Enrique Peña Nieto.

Power and leadership are attained through the management of personal relations, which are ruled by principles of loyalty, trust, and reciprocity. In recent years, academic credentials and technocratic knowledge have become more important than political and electoral experience.

Presidents of the past in Mexico have been known for acquiring power based on their networking abilities and family ties. A lot of media corruption and secrets from the public help political leaders achieve higher positions in office.

Political Situation

Since the late 1900's increased drug-related violence has been of major concern. Ordinary citizens and authorities are unsatisfied with public security and demand more effective policies from police and judiciary systems. This control over public safety is widely recognized as a problem created by unresolved high-profile political assassinations and corruption.

Internet Sources:

http://www.questconnect.org/mexico_cc_ethnic.htm#Groups

http://www.statista.com/statistics/275439/ethnic-groups-in-mexico/

http://banderasnews.com/0707/eded-racesofmexico.htm

http://www.sunofmexico.com/zapatista_force_zapata.php

http://www.mexinsider.com/religion-in-mexico.html

http://www.everyculture.com/Ma-Ni/Mexico.html