Effects of Economic and Socioeconomic Forces
Ã¢ÂÂ¢ Choose one newly industrializing countries mentioned in the text (p. 102
International Business) Referenced below.
Ã¢ÂÂ¢ Choose a product you think would be suitable to export to the country you chose based solely on that country's location, climate, topography, and natural resources.
Ã¢ÂÂ¢ Answer the following questions: What effect might the economic and socioeconomic forces within that country have on the product's potential? Explain the rationale behind your decisions.
My chosen country is Mexico, and my chosen product is agricultural machinery.
Since all trade barriers have been lifted beginning 1994 through 2008 between the U.S. and Mexico, Mexico would be an ideal trading partner. "Under the NAFTA, all non-tariff barriers to agricultural trade between the United States and Mexico were eliminated. Ã¢ÂÂ¦This allowed for an orderly adjustment to free trade with Mexico, with full implementation beginning January 1, 2008" (United States Department of Agriculture, 2008).
Mexico has had significant economic improvements in the agricultural segment in the areas of irrigation to expand croplands, and the climate is favorable for growing crops that would be in need of imported agricultural equipment. As of 1996, nearly half of Mexico's land was officially deemed as agricultural; yet, only about 12% of Mexican land is actually being cultivated. Tim L. Merrill, T. M. & MirÃÂ³ R. (1996)... "Government extension programs have fostered the wider use of machinery, fertilizers, and soil conservation techniques".
Imported agricultural machinery would help boost the Mexican economy. Wealthier agriculturists (large industries) would be able to afford U.S. exported agricultural equipment to expand their own business. The newer technologically advanced equipment would help lower labor cost and boost output production.
In turn, large industries would be able to afford to resell their older refurbished equipment to poorer agriculturists (local farmers) at affordable...