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Its an okay Paper With some tweaking it could be really good - Mexico has established itself as one of the biggest emerging markets in the world today It has exhibited many of the signs of a high growth economy offering several advantages to prospective investors Some highlights of the Mexican economy include single-digit inflation a balanced public budget real economic growth presently at a rate of 12 percent a deregulated economy and a favorable investment climate Risk Management June 94 P32 Mexico also possesses a strategic geographic location as a gate way to Latin American markets Mexico is among the fastest- growing export markets for the United States In 1985 Mexico became the third largest market for total US exports behind Canada and Japan In 1992 Mexico surpassed Japan as the second largest export market for US manufactured goods Mexico now accounts for 1 out of every 10 of total US exports After the passing of NAFTA bilateral trade was quite balanced in 1994 with the US registering a surplus of 13 billion virtually unchanged from 1993 However there was a sharp increase in trade opportunities as both import and export growth exceeded 20 percent One-fifth of the total trade that occurs between the United States and Mexico was created in 1994 One of the major sectors that holds a large promise for the US manufacturers is that of the automobile industry The Mexican market for auto parts is expected to grow by 24 percent from 1994 levels to 169 billion in the year 2000 It is also expected that NAFTA will help increase the US export share of the Mexican market to around 70 percent by the year 2000 In the long run Mexicos location could profit the US industries that establish themselves there through an expanded free trade area in Latin America which could include Argentina Brazil Venezuela
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