How does the price of oil affect mexicos economy?

Answer 1

ECONOMY

Mexico is highly dependent on exports to the U.S., which represent more than a quarter of the country's GDP. The result is that the Mexican economy is strongly linked to the U.S. business cycle, and has suffered from the economic slowdown in the United States. Real GDP grew by 4.8% in 2006, 3.3% in 2007, and 1.4% in 2008, but government officials expect the economy to contract by up to 5% in 2009.

Mexico's trade regime is among the most open in the world, with free trade agreements with the U.S., Canada, the EU, and many other countries (44 total). Since the 1994 devaluation of the peso, successive Mexican governments have improved the country's macroeconomic fundamentals. Inflation and public sector deficits are under control, while the current account balance and public debt profile have improved. As of October 2008, Moody's, Standard & Poor's, and Fitch Ratings had all issued investment-grade ratings for Mexico's sovereign debt.

Answer 2

GDP or Gross Domestic Product is one of the economic indicators used to quantify the wealth of a country. Mexico's nominal GDP during 2017 was $1.14 trillion, meaning it is among the 11th and 13th largest economies in the world. This also means that it is a regional power, which is often overshadowed by its much larger neighbor, the United States.

Answer 3

The economic and trade relationship between Mexico and the United States is quite relevant, due to Mexico's proximity to the United States, the high level of trade, and strong cultural and economic ties that connect the two countries .

Economic interactions include foreign trade and investment, as well as complex supply chains that span several industries: much of the trade between the U.S. and Mexico happens as part of a "production sharing", whereby manufacturers in each country work together to create goods. The expansion of trade has resulted in the creation of vertical supply relationships. U.S. manufacturing industries, including automotive, electronics, appliances, and machinery, rely on the partnerships with Mexican manufacturers.

Mexico is the United States' third-largest trading partner, while the United States is Mexico's largest trading partner. Mexico ranks third as a source of U.S. imports, after China and Canada, and second, after Canada, as an export market for U.S. goods and services. The United States is the largest source of foreign direct investment (FDI) in Mexico.

Trade between the U.S. and Mexico totaled an estimated of US$584 billion for 2015. The most important items traded include machinery and equipment ($195 billion), motor vehicles ($96 billion) and fuels ($34 billion). In terms of trade balance, the United States has a surplus of $9 billion with Mexico in services, while it has a deficit in terms of products with $58 billion.

U.S. FDI in Mexico totaled $108 billion. Repositories of FDI in Mexico include nonbank holding companies, manufacturing and finance/insurance. On the other hand, Mexican FDI in the United States was $18 billion. Beneficiaries include manufacturing, wholesale trade and banking institutions.

Answer 4

The economic and trade relationship between Mexico and the United States is quite relevant, due to Mexico's proximity to the United States, the high level of trade, and strong cultural and economic ties that connect the two countries .

Economic interactions include foreign trade and investment, as well as complex supply chains that span several industries: much of the trade between the U.S. and Mexico happens as part of a "production sharing", whereby manufacturers in each country work together to create goods. The expansion of trade has resulted in the creation of vertical supply relationships. U.S. manufacturing industries, including automotive, electronics, appliances, and machinery, rely on the partnerships with Mexican manufacturers.

Mexico is the United States' third-largest trading partner, while the United States is Mexico's largest trading partner. Mexico ranks third as a source of U.S. imports, after China and Canada, and second, after Canada, as an export market for U.S. goods and services. The United States is the largest source of foreign direct investment (FDI) in Mexico.

Trade between the U.S. and Mexico totaled an estimated of US$584 billion for 2015. The most important items traded include machinery and equipment ($195 billion), motor vehicles ($96 billion) and fuels ($34 billion). In terms of trade balance, the United States has a surplus of $9 billion with Mexico in services, while it has a deficit in terms of products with $58 billion.

U.S. FDI in Mexico totaled $108 billion. Repositories of FDI in Mexico include nonbank holding companies, manufacturing and finance/insurance. On the other hand, Mexican FDI in the United States was $18 billion. Beneficiaries include manufacturing, wholesale trade and banking institutions.

Answer 5

as huge oilfields centered along the Golf coast