CANADA MEXICO

Group 5:
Akshay Vij 123005
Amber Miglani 123006
Arushi Gupta 123015
Gagandeep Singh 123018
Karan Chopra 123025
Kiran Kumar.P 123028
Madhav Garg 123031
Raunak Shivani 123122
Country Profile
United Mexican States
● Capital: Mexico City

● Population: 123 Million

● Economy : Developing

● Area: 1.96 Million sq km

● Major Language: Spanish

● Major Religion: Christianity

● Currency: Peso
POLITICAL FACTORS: Multi-party system
● Federal republic ● The institutional revolutionary
● Elections every six years party(PRI)
● President is elected from popular vote ● The national action party(PAN)
● The party of democratic
● Elections don't meet international anti
revolution(PRD)
corruption standards

ELECTION RESULTS
Candidate Party
Andrés Manuel López Obrador National Regeneration Movement
Ricardo Anaya National Action Party
ECONOMIC FACTORS:
● Steady economic growth between 1.2-2.5 since the passage of NAFTA
● Increase in exports from 8.56 percent of Mexican GDP in 1993 to 36.95 percent in 2013 thereby
leading to a decrease in Mexican trade deficit
● Foreign investment increased greatly with billions of dollars yearly being invested in Mexico
● In 2016, Mexico government's revenue was
MXN 4520.20 billion whereas the expenditure

was MXN 5083.01 billion

● Mexico is the United States second-largest
export market and third-largest trading partner.
● Mexico’s GDP is estimated at 1.15 lakh crores
USD (2017) with services comprising major
share at 64% followed by industry at 31%
of GDP
● Barrier to competition/private oligopolies
SOCIAL FACTORS:
● Mexico is the most populous Spanish-speaking country in the world
● Americanisation of Mexican culture with reduction of tariffs on American
products
● Rise of middle class income group due to rise in manufacturing sector in
Mexico
● According to a 2006 World Bank report, enrolment at primary level schooling
is universal which has helped in reducing illiteracy
● Median age is expected to be 27 years and life expectancy at 77 years
● Existence of a large small-business sector and availability of skilled labor
TECHNOLOGICAL FACTORS:
● New research universities, and research institutes, such as National Autonomous
University of Mexico, were established in Mexico.
● Mexico is Latin America's largest exporter of high-technology goods (aerospace,
pharmaceuticals, computers)
● In 2008 Mexico surpassed China, South Korea and Taiwan to become the largest
producer of smartphones in the world
● Mexican government is putting great emphasis on nanotechnology and
biotechnology
● Greater emphasis on clean technologies and renewable energies
● In 2011, Microsoft opened a technology centre in Mexico city- first microsoft
centre in Latin America
LEGAL FACTORS:
● NAFTA eliminates or lessens restrictions on many kinds of investment by U.S. and Canadian
citizens and businesses in Mexico. Areas where increased opportunities for investment have been
created include automotive goods, energy-related services and goods, transportation services, and
financial institutions.
● When NAFTA became effective on January 1, 1994, Mexico immediately removed investment
restrictions to allow "NAFTA investors" to invest up to 100 percent in Mexican "national suppliers" of
parts. Up to 100 percent foreign ownership of other auto-parts businesses was allowed as of 1999.
● Pursuant to NAFTA, the Mexican state reserves to itself exclusive control of investments in oil, gas,
refining, basic petrochemicals, electricity, and nuclear energy. But NAFTA creates opportunities for
NAFTA investors in "non-basic" petrochemical goods and in cogeneration and independent power
production.
● New opportunities for investment in bus and trucking services were created under NAFTA, also. As
of 1997, Mexico allowed NAFTA investors to hold up to a 49 percent investment in bus companies
and truck companies that provide international cargo services.
● Under NAFTA, Mexico allows financial institutions organized according to the laws of the United
States or Canada to establish such institutions in Mexico. Certain market share limitations were
applied initially, but they were phased out by the year 2000
ENVIRONMENTAL FACTORS:
● Mexico has ratified more than 78 International Labor Organization
conventions and 7 of the 8 fundamental labor rights conventions.The
motivation behind these conventions is to guarantee the labor standards all
around (Conventions and Standards, 2016). Therefore, The Union leaders in
Mexico have strong power and because of the issues in these Unions
workers can be helpless without important consideration.
● Large scale business projects should be taken forward with appropriately
having counseled the communities.
● Mexican government is additionally creating open arrangement concerning
this issue. Some part of the new reforms are aimed to have more responsible
energy regulations.The objective is to have clean technology and control the
safety of hydrocarbon sector.
 Country Profile
CANADA
● Capital: Ottawa

● Population: 37 Million

● Economy : Developed

● Area: 9.98 Million sq km

● Major Language: English,

French

● Major Religion: Christianity

● Currency: Canadian Dollar

● Canada’s economic freedom score is 77.7
● 9th freest Country in the 2018 Index.
● Canada ranks 1st for its business operating environment, which considers key
indicators such as foreign trade and exchange regimes and controls and policy
towards private enterprise and competition.
● Canada is ranked 1st among 32 countries in the Americas region, and its
overall score is well above the regional and world averages.
● Canada’s economic competitiveness has been sustained by strong rule of law
and the solid institutional foundations of an open-market system.
● The government is pushing ahead with massive infrastructure spending,
including through a proposed infrastructure bank, and accelerated growth rates
are enhancing government revenue.
● Canada’s business environment ranks 9th(According to study by Grant
Thornton)
● Ranks 16th worldwide in terms of Inward FDI
● Canada has 6 strong sectors of primary industry: renewable energies (mainly wind), forestry sector,
hydrogen and fuel cells, mines, metals and minerals, fishing, oil and gas.
● The manufacturing sector represents approximately a third of the GDP.
● Canada is a country open to outside and trade represents more than 60 % of its GDP.
● The United States takes about 80% of Canadian exports.
● Its other main trading partners are the European Union, Japan, China and Mexico.

Breakdown of Economic Activity By Sector Agriculture Industry Services

Employment By Sector (in % of Total Employment) 2.5 21.6 75.9

Value Added (in % of GDP) 1.6 31.8 66.5

Value Added (Annual % Change) -9.5 -10.1 0.6

Index Of Economic Freedom

Canada is ranked 9th in the world with a score of 77.7 in the index of economic
freedom.

This is determined on 4 factors-

● Rule of Law
● Government Size
● Regulatory efficiencies
● Open markets
1) Rule of law
contd….

All variables in Rule of law in Canada is much higher than the world average.
Government Size

Both the variables related to the government policies coincide with the world
average or are favourable.
Regulatory efficiencies
contd...

The residents of Canada have greater freedom to do business and better labour
wages and incentives compared with the world average
Open markets
contd….

Canadian people have better autonomy to do business, investment and other trade
related activities as compared to the world
NAFTA
● The free trade agreement between the U.S., Canada and Mexico had
essentially the same objectives for the latter two countries: to have broader
and securer access to their main market and create a more favorable
environment for an outward-oriented economic growth.
● The North American Free Trade Agreement (NAFTA) had, however, two
positive effects on Canada-Mexico relations:

1)It created more dynamic trade relations between the two countries

2)It played the role of a cooperation catalyst, transforming a friendly

relationship into a strategic partnership.
References:
https://www.investmentmap.org/competitorCountry.aspx?selCtry=CAN&selInds=T
T&selOpt=&selYear=

https://www.globaltrade.net/f/business/Canada/Business-Environment.html

https://www.heritage.org/index/country/canada

https://www.globaltrade.net/f/business/text/Canada/Business-Environment-
Canada---Overview.html
Thank you!