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Name: Diego Contreras Morales

Enrollment: 2774616

Course Name: International environments and business operations

Professor´s Name: Gloria Pamela Cantú Quintero

Module: 1

Activity: Assignment 2

Date: 16/06/20

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? One of the advantages is the technological development and the chances of being at the forefront and cost could be that most small companies remain unaware and have nearly nothing to do with the state's economy … 2. What can it be done to reduce these costs and maximize those benefits? Marketing strategies may benefit small companies develop and influence their local society and economy. 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 one out 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? I believe the federal government ought to protect farmers' work, since the majority of the best agricultural products in Mexico end up in foreign countries because in Mexico, the products are very poorly paid, meaning the farmers look for better payment and find it outside the country, which means that the worst part of the harvest is sold in Mexican markets…

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2. Do your policies support the basic free trade philosophy? Why, or why not? Yes, because it doesn’t mess with the allowance of international trade, it only makes the Mexican retailers pay what is fair for the product which may mean the selling better quality products inside Mexican stores

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? 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. As one of the main engines of economic growth and national progress, Mexican government is defining foreign trade. Given the current volatile circumstances, the Mexican economy has developed at an average rate of 2.2 percent during the last ten years. The national economy will continue to grow in 2019 and 2020. The economic development plan of the government. This development, driven by social services and greater inclusion of capital, can be improved in the North American country by reorganizing global price chain policies, and by the personal expenditure in infrastructure and strategic industries the expenditure and export in the public sector. 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).

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The Trans-Pacific Partnership is a trade agreement between Pacific Ocean border countries such as Japan, Vietnam, Australia and Chile. In October 2015, negotiations on the Treaty were concluded and the Treaty was published to the public at the beginning of November. It is expected that the TPP will reduce trade barriers between those countries by lowering tariffs for products such as cars, food, and textiles. Nonetheless, it would do a lot more. It might mean that countries will have to adopt stricter labor and environmental rules, provide drug companies with stronger legal protection, extend the copyright protection period, provide foreign investors with new means of contesting the laws and regulations of countries and much more. Briefly, modern business transactions such as the TPP are much more than trade. We are one of the most important ways that the planet hammers out global economic laws. And the deal has become controversial for that great reason. Digital rights groups and global health advocates, for example, who don't typically focus on business issues, have advised that the deal could have a negative impact on digital innovation, and on the global fight against AIDS. Little has been said about the opportunities inherent in the parallel development of these two windows of opportunity. On the one hand, through the PPT, greater access to the markets of the Pacific basin, which are expected to be the fastest growing in the world. On the other hand, the advantages of the South of the country in geographical terms, to become a platform and interoceanic logistic bridge, as well as its vocations and productive capacities. And all this is underpinned by development poles such as the Special Economic Zones. The linkage is evident and must necessarily be considered as an essential factor in national strategic planning. The way is not to create islands of development in Puerto Chiapas, Lázaro Cárdenas, Michoacán, or the Transisthmian Corridor from Salina Cruz to Coatzacoalcos and beyond. What is needed is a comprehensive development path for the states and regions involved, for the purposes of their organic integration with the national and international economy. That is the measure of the success of these initiatives: that they generate sustainable growth and prosperity. With the PPT we will ensure preferential access to 12 of the most important economies in the world and we will cover ourselves against scenarios of increased protectionism. Most importantly, we will avoid any risk of losing relevance in global trade and in markets where we already have a significant position. The TPP implies an exportable offer of more than 150 billion dollars in sectors in which Mexico has very important competitive advantages. These include the

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automotive, electrical, electronic, agro-industrial, chemical and steel, perfume and cosmetics industries, among many others. The PPT is a key factor in the challenge of expanding productive integration in North America. It is going to help us to mount a higher value-added export of the United States, which has set the increase of these exports as a national strategic priority. In this scenario, it is important that the development of the necessary infrastructure for the Special Economic Zones is not limited to their regions but has connectivity to the logistic corridors of the center-north of the country. Let the South-South-East connect with another vital priority: to accelerate the productive integration of the North American bloc. And lastly the businesses that should be concerned about all these changes should be those who intend to export their products or those who depend on imported products coming from across the Pacific Ocean....