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Mexico Growth

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Mexico Growth

Recently, Mexico has experienced the economic growth. Despite such problems as bribery, drug trafficking and numerous faults in every branch of government, the country is slowly but steadily becoming an advanced nation. Multinationals, which are mostly connected with the car industry, open new factories and require skilled workers. More and more young people come to understanding that it is possible to find a job after graduation. While studying, people invest in their future, because the salary in multinational companies is higher than in companies situated near the frontier. Thus, people enter universities and take extra classes to study foreign languages. In their turn, multinationals are interested in qualified professionals and agree to pay for additional courses for their employees. The government supports such companies by helping them to choose among applicants.

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Multinationals are attracted to Mexico because working with China has become less profitable; Chinese labor is more expensive than Mexican. Besides, it is easier and much cheaper for multinationals to buy land, build factories and hire employees in developing countries. Consequently, this results in many advantages for such countries, particularly, in the economic development.

Thus, foreign investment has a great impact on Mexican economy, including such spheres as the level of employment, advance in high technologies, growth of the gross domestic product, and quality of education. Foreign investment also encourages business and changes peoples lives for the better. On the other hand, the stronger the economy is, the more difficult it is to support the existing level of crime and corruption: crime and notoriously weak justice system costs 8 to 15 percent of the countrys GDP (Cave n.pag.). Corruption is very convenient for the upper class as it makes it possible to avoid taking responsibility for the breach of law or tax evasion. The lower class has its own problems to solve, namely what to eat and what to wear. Unfortunately, most of these people are not educated enough to change the situation in the country. However, the percentage of the middle class people becomes higher with the economic growth. Additionally, the middle class is concerned about the authority. Eventually, this will lead to the decrease of corruption and changes in the authority and legislation.

New possibilities increased the level of emigration to Mexico. As a comparison, several years ago, people had been fleeing from Mexico as far as they could. The low taxes and ability to evade the law attract foreigners. Now business executives and analysts from around the world come to Mexico every day to assist with the opening of companies. They rent apartments and contribute into the housing market. They also represent different cultures and provoke the need for the emergence of new spheres of business. For instance, now it is profitable to serve Japanese food, or open appreciation societies for Korean pop music.

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New establishments provide the country with new jobs. Such companies as Nissan Motor, Honda Motor, Toyota Motor, Mazda Motor, Volkswagen AG, BMW AG, and Daimler AG have plenty of vacant working places. Thus, educated employees are able to receive a compatible salary and have a secured job. The problem is that jobs connected with automobile manufacturing and utilities almost do not require womens labor. Besides, those who do not have a degree can work as unskilled laborers at first. In the future, an unskilled laborer can continue studying and get a higher position in a company. Multinationals give people the opportunity to live better, so most people would do their best to succeed in employment.

The flow of foreigners and creation of new ventures cause the development of science and emergence of new technologies. The economic growth will help to grant money for buying necessary materials and devices for the conduction of experiments. However, now Mexico spends 0.4 percent of the gross domestic product on research and development (Cave n.pag.).

The flow of foreign investments influences the gross domestic product and makes it higher. Thus, the number of new ventures producing goods increases with the appearance of the middle class.

Nowadays, the level of unemployment in Mexico is still structural and very high. Undoubtedly, multinational companies help to solve this problem. However, there are still few people who have the required skills. Further education has become more popular among young people, but universities in Mexico do not cover all qualifications. People from the lower class hardly manage to finish high school. Thus, they are not able to afford entering the university. According to Cave, only 36 percent of Mexicans between 25 and 64 have earned the equivalent of a high school degree (Cave n.pag.). However, if there are a lot of vacancies, the government should facilitate entering institutes and universities for people to acquire enough knowledge and skills to work in multinational companies.

It should be noticed that authority helps unemployed people who are willing to work by providing special public training programs. By taking part in such a program, a person has more chances to meet the requirements of a company and pass the interview.

The growth of the economic level in Mexico is caused by the big flow of foreign investments. Multinational companies see prospects in the cooperation with Mexico. By building new factories and creating new work places, multinationals enrich Mexicans and give the chance for the middle class to exist. Mexicans views and beliefs have changed; now they understand that this is reasonable to get higher education instead of migrating to other countries.

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