City Analysis

The current population of Mexico City is 8.85 million. Mexico city is not part of any of the 31 states in Mexico, but is considered a federal entity. This federal entity would be a National Metropolis on the hierarchy of Central Places. There are two large regional cities around Mexico City that contain just over one million people in each: Ecatepec de Morelos (1.6 million) and Nezahualcóyotl (1.11 million). Melchor Ocampo (50,000 people) and Tepotzotlán (88,000 people) are towns around Mexico City. The map shown below, from www.citypopulation.de, is of cities and towns indicated by population. The larger and more pink the symbol is (and if it has a black dot) the more populated the location. 

                       http://www.citypopulation.de/php/mexico-mexico.php

Mexico City is home to 21% of the entire country's GDP. Many of the higher income jobs may be found in Mexico City and larger surround areas than in the towns like Melchor Ocampo. Since Mexico City is largest in the entire country of Mexico (and also the largest in North America), there is not much that can't be found. It may be difficult for people to buy freshly picked crops like those in smaller areas, though it is common to see street vendors. 

Vehicle Market Executive

EGT Consulting has examined Mexico as a potential location to expand the motor vehicle market. Firstly, the GDP of Mexico is expected to rise 3.5% within the next year. With this increase in growth, GDP per capita will rise as well. An increase in GDP per capita will in turn allow citizens to afford more. However, the GDP per capita currently is only $15,300. An amount of at least $30,000 is recommended for a four-door sedan, and therefore, motor scooters may be the best fit for Mexico. 

On the other hand, in larger cities in which infrastructure is more developed, taxis and buses are more common. Cars are common seen on these roadways as well. Mexico City in particular, is a well developed city and contains most of the wealth in Mexico. With many ports nearby, it would be easy to transport four-door sedans to Mexico City and other developed cities in which infrastructure is well developed. 

Agricultural fires in Mexico

Source: NASA

    Fires have been spotted by NASA in Guerrero, Colimo, Jalisco, Oaxaca, and other areas along the western border of Mexico. Due to the location, it was determined that the fires were set deliberately in order to manage the land where they occurred. The issue with this is that although it helps restore nutrients in the soil, when farmers burn the land, it causes the quality of the air to decrease.
    When the crops are burned, the land is enhanced with nutrients to better the growth of crops in the future. However, the quality of the air degrades, which in turn can affect cycles in the environment (water cycle, etc.) that allow the crops to be grown in the first place. This issue applies to the economic concept of National Income (GDP = C + I + G + NX). Major crops such as corn, beans, and fruit that are grown in these areas are common exports. Exports are one of the major sources of income for Mexico. If the crops are being burned, there is a short term loss of income for the country. In the long run, however, the the enhanced soil will allow crops to grow more efficiently and increase the amount able to be exported. More exports increase GDP.
    Seasonal changes can cause a lack of growth of the crops. Also, the cycle of burning the crops and allowing them to grow again can be detrimental to the air quality and environmental cycles that rely on the air. To resolve this issue, environmental policies should be set in place. Environmental policies would help protect crops and the air quality. Other options include using fertilizers and other measures to increase crop growth rather than burning the land. Although there are some negative consequences to using fertilizers, they may be seen as less detrimental than burning crops to enhance the land. These policies could not only be beneficial environmentally, but also could better the exports from the country.

"The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger" by Marc Levinson

1. A selection from this chapter that I found interesting was when Levinson explained how the containers are organized on the ship. Most people would not think about how much thought goes into organizing the containers. "They have ensured that the refrigerated containers are placed in bays with electrical hookups, and that containers with hazardous contents are apart from containers that could increase the risk of explosion," (p. 6). With the great amount of containers on these ships, it amazes me how organized they are with them all in such a fast process. The advances in technology contribute greatly to the ability to organize these containers so efficiently. 

2. Levinson claims that containers not only saved time, but also lowered cost of shipping. Containers are able to organized quickly and efficiently, saving a lot of time. Therefore, countries feel more comfortable buying from another country that provides a good at a reasonable price, even if it is at a great distance, because time and cost of shipping are low. With that being said, Levinson sees a clear contribution to globalization from "containerization". 

3. As Levinson states, consumers win in the sense that there are a wider variety of choices from the global trade made available by containers. However, they are also at a loss because if these consumers are workers, they are part of the competition of employers who seek the cheapest labor. "In 1956, the world was full of small manufacturers selling locally; by the end of the twentieth century, purely local markets for goods of any sort were few and far between." This shows that producers of local goods are at a loss. With the use of containers, consumers receive more choices with worldwide goods. Some producers, though, like large manufacturers, win in this situation because their business can easily spread internationally. 

(source: Google images)

"Obama meets with Mexico's Peña Nieto, vows to boost trade"

Article posted: May 2, 2013
Author: Kristin Deasy

http://www.globalpost.com/dispatch/news/regions/americas/mexico/130502/obama-meets-mexicos-president-pena-nieto-live-video

Barack obama and President Enrique Peña Nieto met in Mexico City this past Thursday. Peña Nieto announced that future measures will be taken in order to increase trade and educational cooperation, and address immigration issues. As of now, US is Mexico's number one economic provider and Mexico is the third largest partner of trade for the US. Therefore, growth in Mexico will mean growth in America. By cooperation between the US and Mexican economies, Peña Nieto claims, "we can make a more productive, a more competitive region,". Educational and social reforms will be made in Mexico as an approach to the growing drug problem of the country. As for immigration, there is a new reform bill currently in the US Congress and Peña Nieto did not make many comments on the issue. 

In class, we have discussed the arbitrage opportunity. Mexico has the US as their number one economic provider over many other countries. It may be due to the location of the country and the fact that they are neighboring locations. Transportation wise, railroads, sea ports, and airports of Mexico provide several opportunities for the US to trade easily with them. The ability to trade between the US and Mexico so smoothly will make it easier to increase trade between the two and better the economies of both. 

I think the need for increase in trade was to encourage growth of the Mexican economy. However, the topics of immigration and educational reforms were brought into conversation because they have been growing issues of the country. Drug use and immigration both affect the US, so it was crucial for the leaders of both countries to address the issues. I believe educational reforms will have reduce the drug issue in the long run. More education and staying in school will keep children from getting involved with drugs at a lower age and take them down a more positive path than illegal drugs. Education reforms may also allow more opportunities for Mexicans in their own country rather than having to illegally immigrate to the US. 

Transportation

1. One of the largest ocean ports in Mexico is the Port of Veracruz. Made in the beginning of the 20th century, it now brings in over 16.1 million products a year, which makes the port of Veracruz is the oldest and largest port in Mexico.
    Other major ports of Mexico include Guaymas, Topolobampo, Mazatlan, Manzanillo, Tampico, and Pajaritos.

(Port of Veracruz)

2. Passenger rail systems are a popular way of transportation depending on where in Mexico an individual is located. In Mexico City, the STC is the second largest metro system in North America and has 195 ports, 115 of which are completely underground. Other passenger trains in Mexico include Expreso Maya, Chihuahua al Pacifico, and "Tequila Express", all of which are tourist trains. Freight trains include the Ferromax and the Kansas City Southern de Mexico in northeastern Mexico.
   The highway and road network in Mexico is like the US in that east/west highways are even numbered and north/south highways are odd numbered. These roads are maintained and created by the federal government in Mexico. Some roads require a toll, though there are less than there are in the US.

(STC Metro)

3. Mexico has about 1,834 airports, ranking 2nd in North America and 3rd in the world. Airports are commonly found in major cities for international tourists like Cancun, Manzanillo, Mexico City, and Oaxaca. The Manzanillo International Airport, as I remember from my travels, was pretty small compared to most. In order to get inside the airport, we exited the plane onto the runway and then made our way inside (something I was not used to by any means coming from most big airports in the US). Some national airports include Zamora National Airport and Nuevo Casas Grandes National Airport. 

   

(Manzanillo Airport)