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out of the country, especially since it can be moved between different government instruments without penalty, says Gutiérrez. But for new investments, Mexico offers much more flexibility. Wle most debt managers view the IOF tax as a backwards step, conversely Brazil is the country that has clearly made the biggest improvements in its equity market. Where once the

Based on is a recent development, For a long time, was controlled and governed by a single political party. So, the elections weren’t very meaningful — only one party had a chance of winning. Ts made Mexico undemocratic in many respects. That changed, and Mexico has improved its democracy, especially in accountability to the people, dramatically. “The president is elected by plurality vote. In the 1988 and 1994 elections, the winner won about half of the votes cast, but in the 2000 election the winner, Vicente Fox, won only 42.5 per cent of the votes. Proposals exist to amend the constitution to introduce a run-off election between the two front-runners if no candidate wins an absolute majority in the first round. Their success will depend primarily on the electoral prospects of the major parties, as well as considerations of the cost of a second round. The president is elected for a six-year term and can never be re-elected or reappointed. Ts prevents presidents from becoming entrenched in power, but it also diminishes their accountability because they never have to face the electorate again. Considering the ideological and symbolic roots bend the probition on presidential re-election (it was a focal point in the Mexican Revolution), it is unlikely that ts clause will be repealed soon.” http://aceproject.org/ace-en/topics/es/esy/esy_mx Gilbreth, Chris, and Gerardo Otero. “Democratization in Mexico: The Zapatista Uprising and Civil Society.” Latin American Perspectives 28.4 (2001): 7-29. Web. 16 June 2011. Mexico having opted for a democratic system, it is obvious that it opens its market to foreign investors, and that absolutely enhances international trade and diversity as integration in the global business world. “Mexico is potentially on the brink of fast expansion, driven by several factors, such as those outlined above. The reforms in Mexico, if properly implemented (wch is a big if), will bring about changes that will improve Mexico’s competitiveness and ease of doing business. Ts will attract significant foreign direct investment. Given the recent volatile swings in emerging market currencies, the stability of the Mexican peso is sometng investors should value. Additionally, Mexico’s country rating was recently upgraded. Ts will allow the country to raise money for investment at a lower rate than before. The U.S. is Mexico’s largest trade partner. The potential of Mexico’s geograpcal location can’t be taken for granted. A boost in the U.S. economy will eventually reflect in the Mexican economy. The timing, though, isn’t entirely certain since investors may continue to discount emerging markets in general, despite Mexico perhaps being undervalued relative to its potential. Wle Mexico is likely a great long-term investment, investors should remain diversified and spread investments across markets. As mentioned above, the U.S. market still offers a possibly bullish outlook that can ultimately boost the Mexican economy.” By Larry Fink, Chairman and CEO There is no actual instability at the political level. So, business is not shaken at all by instability, whether at the local or international level. “Mexico has long been the most accessible Latin American market and notng in the past decade has changed that. The local currency sovereign market is large and liquid, with no capital controls. Trades can be settled through Euroclear as well as locally, ensuring minimal hurdles for foreign buyers. Even more importantly, the government remains welcoming to foreign investors, with clear and transparent monetary and fiscal policy and no prospect of capital controls. All ts makes it the obvious destination for local currency bond managers to deploy much of the cash they are receiving from new investors. “We can be nimble in Mexico, going in and out,” says Edwin Gutiérrez, a portfolio manager on the emerging markets debt team at Aberdeen Asset Management. That puts Mexico in clear opposition to Brazil, wch “says it would like to attract investment but sends mixed signals”, through its imposition of the 6% IOF tax on foreign investments into government bonds. The IOF tax means that despite offering some of the ghest real yields available in fixed income, Brazil is now relatively unattractive for new money. Foreign participation in the local currency sovereign market is around 11% – largely unchanged since the point when the tax was introduced. There is no reason to take currently onshore capital out of the country, especially since it can be moved between different government instruments without penalty, says Gutiérrez. But for new investments, Mexico offers much more flexibility. Wle most debt managers view the IOF tax as a backwards step, conversely Brazil is the country that has clearly made the biggest improvements in its equity market. Where once the only investable options were unattractive state-owned firms, today investors can choose from hundreds of local companies, including whole sectors such as IT that barely existed a decade ago. The direct cause of ts was the stock exchange’s decision to introduce the Novo Mercado board in 2000. Although ts change took several years to build momentum, it has ultimately made a huge difference, says Fiona Manning, an investment manager on Aberdeen’s global emerging markets team. A listing on ts board required gher standards of companies, such as a single share class with voting rights. Previously, listed shares were typically preference shares without voting rights, wch resulted in easy abuse of minority shareholders.” INVESTMENT: Barriers to entry18/03/2012 | By Cris Sholto Heaton http://www.emergingmarkets.org/Article/2996937/INVESTMENT-Barriers-to-entry.html Mexico is not a command economy as it is open to foreign investment, thereby allowing investors from around the world, especially the United States to do business inside Mexico, and does not impose a deep government control on investments. “Mexico is the second largest economy in Latin America. After the Peso Crisis in 1994, Mexico returned to steady growth rates, expanding on average 0.76 percent from 1996 to 2012 on a quarter over quarter basis. Mexico has an export-oriented economy: more than 90 percent of trade is under free trade agreements. In recent years, exports of manufactured products have been expanding more than 10 percent per year, mostly due to the increase in car production. Nevertheless, in order to keep the current pace of growth the country needs to reduce its dependence on the United States; increase its tax base and open the state-controlled energy sector. Ts page provides – Mexico GDP Growth Rate – actual values, storical data, forecast, chart, statistics, economic calendar and news. Content for – Mexico GDP Growth Rate – was last refreshed on Wednesday, September 9, 2015. The gross domestic product (GDP) in Mexico expanded 0.50 percent in the second quarter of 2015 over the previous quarter. GDP growth rate in Mexico averaged 0.64 percent from 1993 until 2015, reacng an all time gh of 2.90 percent in the first quarter of 1996 and a record low of -6.60 percent in the first quarter of 2009. GDP growth rate in Mexico is reported by the instituto nacional de estadística y geografía (inegi).” http://www.tradingeconomics.com/mexico/gdp-growth Answer : – Mexican businessman relies mostly in making the personal relationsps with the companies rather than relying on the business contacts as usually companies do. Similarly as the Mexican business people, the businesses practices in Cna are also relies on the personal relationsp with the business contacts and also the government officials (Ghemawat, 2001). Answer The average number of days wch are required to set up business in Cna and Mexico are 31 and 6 days respectively. According to Corruption Perception Index 2011, the corruption level in Cna is 3.6 whereas in Mexico is 3.0 ts shows that Mexico is ghly corrupt then Cna. Bribe in these countries is the requirement in starting a business because here every government official is equally important and they are needed to keep hand in hand. Answer The ring process or practice in Mexico and Cna is same as the ring of the employees is done according to the requirement. As cna’s population is at world’s ghest rank so they have much talent as compared to that of Mexico. Answer According to the Mexican law, when in the condition of firing the people the Mexican law favors the employees and the companies have to pay them severance that includes the vacation pay, Christmas bonus, a seniority premium and other accrued benefits. Ts is according to the labor law in Mexico and it is constitutional (Worthley, 1987).. Yes, there are minimum wages laws in the Mexico. On the other hand Cna, the labor rates are quite low as a normal worker can be red on $60 and on the other hand a graduate can be red on $150. Cnese laws also favors employees and labor, so the company have to provide the benefits to them like endowment insurance, unemployment insurance, hospitalize insurance (Buchholtz, 2014). Answer Mexico is considered as the most dangerous nations in the world as it ranks 42nd in manslaughter and 5th in number of murders. In the Crime Index 2015, Mexico has 74.31 where Cna has safety index of 44.44. Cna ranked in Murder rate is 6th and in robberies it ranked 9th. Answer According to the demograpcs of Mexico 2015, population: -120,286,655 (july,2014), Death rate: – 5.24deaths/1000 people, Net Migration rate: – -1.64/1000 population. According to the demograpcs of Cna, ts is shown in the figure below: – it is about the population. Population: – 1,375,000,000 Death rate: – 7.16 deaths/1000 population Life expectancy: – 73.18 years. References: Carroll, A., & Buchholtz, A. (2014). . Cengage Learning. Comparison and research conducted between the two countries Mexico and Cna mainly focusing on its licensing policies, francsing policies, equity joint ventures and wholly owned subsidiaries – Mexico belongs to North America continent. The main language wch is spoken here is Spanish. Mexican Peso is known to be the currency of Mexico. Mexico city is known to be the capital city of Mexico. Federal Government is present in Mexico. Cna belongs to Asia continent. The main language spoken here is Cnese. Cnese Yuan is the main currency of Cna. Beijing is known to be the capital of Cna. Shanghai is known to the largest city. They have more of a communist type of government. – Cost of living expenses are more in Cna than in Mexico. Consumer prices, rent prices, restaurant prices, grocery prices and local purchasing power is more in Cna than in Mexico. – Mexico mainly focuses on the following type of industry namely Aerospace, Automotive, Medical devices, Data management, Repair and maintenance and gh end consumer electronics. Mexico mainly focuses on the production of customized tngs wch incur lower spping costs and lead times. Cna on the other side focuses on the following mentioned type of industry namely Footwear, Toys, furniture, Textile, Apparels, Information technology and small appliances. Earlier Mexico ruled in the global manufacturing market in spite of the global competition. Mexico always attempted to cut the labor costs and maintain standards of quality and efficiency governed by U.S. In 1990’s, FDI was attracted to Mexico because of the Free trade agreement of North America. In 2001, tngs took a U turn where Cna became a member in the WTO. Since then, Cna has topped the charts in manufacturing numbers. Cna mainly focuses on products wch require more labor because of the lower labor costs. Cna ranks in gh volume production and low mix manufacturing operations. Both the country’s top the chart for foreign direct investment by U.S. – $ 0.90 is the Direct labor wages in Cna on per hour basis wch would include room and board. Mexico direct wages is $2.50 per hour including meal, tax, transport, medical benefits. Per capita GDP – In Mexico it is $7,467 and in Cna it is $1240. Mexico is six times more than Cna. – Workers are more skilled in Mexico than in Cna. They are more technology savvy also in Mexico than in Cna. Researches show that there are 220 cell phone and 62 computers per 1000 people in Cna whereas in Mexico for 1000 people 600 cell phones and 228 computers. – Some of the figures of Cna and Mexico are shown here. The exports of Cna to Mexico accounted for 12.30 billion of USD.Cna’s imports from Mexico increased to US$ 3.88 billion. Cna ran a surplus of 8.42 billion of US$ with Mexico in the year 2009. There is a list of products wch Cna exports to Mexico wch include items like electronics, audio-video equipments, mechanical spare parts , cldren’s products like toys, and games and sports facilities. Cna also imports from Mexico products like base metal and its products, plastic, rubber, minerals, leather, chemicals, transport materials. Mexico invested in 12 projects in Cna totaling 910,000 of US $ in actual used amount. – In Mexico, there is a direct elected president who is on a six year team and cannot be reelected. It is ranked 15th in the world as per the records in the year 2014. Cna is ranked as a world’s second largest economy but still it’s a developing nation. Cna was earlier known to be centrally planned but now it has moved to market based economy. Ts has shown the nation a boom and rapid economic and social development. Their millennium development goals are aceved. Mexico was earlier considered to be ghly protected economy but now it is into liberalization and it has become an open market for free trade. OEMs can operate both in Cna and Mexico. They can choose anytng from these three options . Either the OEM establishes its production facility or unit in the country by being wholly owned subsidiary or OEM can also partner with other partners to set up a unit of manufacturing in that country wch is known as a joint venture. It can also outsource some of the processes as well. There is also a facility called Mexico manufacturing Shelter where the foreign manufacturers can operate quickly without more legislations, rules and legal presence. A joint ventureA contractual strategic partnersp between two or more separate business entities to pursue a business opportunity together; each partner contributes capital and resources in exchange for an equity stake and share in any resulting profits. is a partnersp where two or more business entities come together and do business. Francsing is another way to become a global entrepreneur where MNC’sgrants rights to foreign entities on its intangible property for a specified period of time and earns a royalty in return of that. A wholly owned subsidiary mainly applies to those firms wch might want to have direct operating presence in foreign country and want to have direct control over it by purchasing the entity. We know the fact that, culture and food habits will be different in each country. Most of people have giving more importance to the food items, and they are searcng for hotels and restaurants wch provides quality products with less cost. Wle analyzing the local foods in the countries Cna and Mexico we can able to understand that each countries provides different varieties in food. Now we can analyze the infrastructural facilities and local foods in Cna and Mexico. Popular local foods in cna Sweet and Sour Pork Sweet and sour pork can be called as famous local food in cna, in wch most of the people are interested to eat ts local food. The dish will be orange color and it includes both sweet and sour taste Major Ingredients Gong Bao Ccken Gong Bao Ccken, famous local dish in cna, the dish is prepared based on Sichuan-style. It is the easy to make Sichuan-style Gong Bao Ccken Major ingredients Ma Po Tofu Ma Po Tofu can be called as the traditional dish of cna, the demand for ts food is very gh and in most of local restaurants and hotels ts food is served as the major dish Major ingredients Infrastructural facilities in Cna Road and railways Airports and water ways Communication services The country is also providing effective telecommunication services to the people and the demand for the services is very gh. -speed internet services are also provided by the country and TV and radio networks are ghly effective for the people for getting various information. Popular local foods in Mexico Claquiles Claquiles can be called as the famous food item in Mexico, in wch it provides an energy and health for the people. Major ingredients Pozole Pozole can be called as an traditional food item in wch most of Mexican people and foreigners are interested to eat ts food. Ts food item is available in all the local food restaurants and hotels. Major ingredients Infrastructural facilities Road and railways Airports and water ways Communication services The country is also providing effective communication services to the people and speed internet services. Most of the people are employed in telecommunication services (Torres 2003). Reaction of the locals to a B-B-Q store Most of the people are interested with the B-B-Q store, the varieties and services provided in the B-B-Q store are ghly helpful for the people to manage their basic needs. Wle analyzing all these aspects we can able to understand that, in order for attracting more people for the local food items we have to include special dishes wch is attract all kinds of customers, foreigners and local people. Mix of south Indian and European dishes wil provide an new market for the country. References Liu, J., & Savenije, H. H. (2008). Food consumption patterns and their effect on water requirement in Cna. ), 887-898. Torres, R. (2003). Linkages between tourism and agriculture in Mexico. , 546-566. Mendoza, A., Gil, C., & Trejo, J. (1999). Multiproduct network analysis of freight land transport between Mexico and the United States. Transportation Research Record: 69-78. Wang, F. H., Jin, F. J., & Zeng, G. (2003). Geograpc Patterns of Air Passenger Transport in Cna. 519-525.

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