The paper "Market Environment of Mexico" is a brilliant example of a term paper on marketing. Mexico is a country with a population of more than 103 million with a growth of 1% annually. The country’ s Gross Domestic Product amounted to 768.4 billion USD while GNI value accounts for 7310 USA. Mexico has been practicing the free market economy system. After the economic crisis in 1994, the country with its free-market economy system aims to alleviate poverty. Mexico has been struggling with the policy of economic structural reform. The country has been facing low inflation that contributed to middle-class credit consumption increase.
In addition, income increase in the middle-class population has contributed to the stability of the economy in the country. That is why Mexico has been ranked as the second-highest middle-income country in the Latin America world in terms of its Gross Domestic Product. However, the country has been facing inequality distribution of income. 20% of high-income earners is equivalent to 55% of the total population. Due to this income distribution gap between rich and poor has been existing for decades.
Thus the government has to solve the problem of the income gap. Since 1995 after the economic crisis, about 50% of the country's population lives in the area of poverty. The country has engaged with the North American Free Trade Agreement (NAFTA) for ten years, and it also belongs to the Organization for Economic Cooperation and Economic Development (OECD). I. Economic Environment With the highest per capita income in Latin America, Mexico is firmly established as a middle-income country, but it still faces huge gaps between rich and poor, north and south, urban and rural (World Bank, 2006). Population Mexico has a population of about 104 million people with a growth rate of 1 percent.
The population aged 65 and over the ratio to the total population is 5 and it is estimated to be 7 in the year 2020. The aged population is about 10 to the total labor force with a focus of 13 in 2020. According to census data, the foreign-born population is about 1 million in 2000. Table 1. Population Year 2000 2001 2002 2003 2004 2020 Subject Evolution of the population 98,658 2 2 100,051 1 . . 101,398 1 2 102,708 1 . . 104,000 1 . . . . . . . . Aging societies 5 10 . . . . . . . . . . . . . . . . 7 13 Immigrant population Foreign nationals as a percentage of the total population 0 . . . . . . . . . . Foreign-born population, according to census data, circa 2000 1 . . . . . . . . . . Source: OECD (2006) Economic System The country has practiced a free market economy system.
Due to its free-market economic system, the country has been ranked in the upper-middle-income country with the highest per capita income in Latin America. It is the largest economy in the world in terms of Gross Domestic Product.