Political Risk Mexico

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Riesgos Politicos De Mexico

Transcript of Political Risk Mexico

Analysis of the variables of political risk in Mexico

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Political RiskWhen speaking of political risk refers to potential harm to a business operation arising from political behavior, so this risk refers to the political changes or instability in the country, in this case political risk is measure for different variables that for we its variables has a percent of influence in the political risk, this variables are:1. Variables:

Levels of corruption Unemployment Terrorism Political interference Levels of crime Arm conflict Linkage to guerrillas Armed groups Drug trafficking Poverty Civil disturbance

Political Risk in Mexico

Mexico is a country of North America, Its official name is United States of Mexico, its capital is Mexico City and its national language is Spanish, the population estimate is about 118,395,054 for 2013, its currency is Mexican Peso and the total GDP is $2.2602 trillion. For this six year the president is Enrique Pea Nieto.Red risk: 80-100 %Yellow risk: 50-79 %Green risk: 10-49 %

Total Score of Mxico: 92%

At this moment Mexico is a country with a lot of problems that reflects the political risk. The citizens are dissatisfied with Enrique Pea Nieto government. The score that we give to this country is 92%, it means that they at red risk. The causes of this score are:

The government has a high level of corruption; they steal the money of the citizens and spend it in personal affairs. For example a controversial situation is the value of the house of the president is about USD 7 million and is located in the more expensive neighborhood of Mexico. Mexican population ensures that this money comes from the taxes paid In January 2015 there were 2,307,000 unemployed in Mexico which meant an increased compared to 45,000 people who had 2,262,000 in December 2014 Terrorism is an important variable that has brought many problems in this country. An important fact related to this factor was the disappearance of the 42 students of Ayotzinapa in October of 2014 and at this moment they continue missing and anybody knows anything. The levels of crime are a very important variable in this country because the citizens live it every day. The most common is the theft or assault the passer, followed by burglary-room or business. Other types are extortion, human trafficking, drug dealing, money laundering, child pornography and kidnapping, which fall into the category of organized crime The political interference in Mexico at this moment is almost zero; the government has not taken the necessary decisions to solve the major problems facing the country. Mexico currently and concerning its history has had a significant armed conflict for the country's development, this conflict has been based on drug trafficking occurring within the country and has killed a number of people meaning as is forced displacement of thousands of people in recent years. At Home operate at least seven guerrilla groups with presence in several states , the increase of guerrilla action has frieze for the return of the political party PRI, that currently belongs where president elect Enrique Pea Nieto , which is manifested as corrupt party one , who ruled by more than thirty years this country. The production of drugs and his Traffic Towards USA is a present problem, and since the first decades of the twenty century, the government during these years has tried to handle this situation, this has provoked that the drug traffickers organize in groups of conflict armed like they it are: Los Zetas, being they the dread and the image that torments the Mexico of today According to the unicef, in Mxico , 50.6 million of people were not enough income to cover their basic needs regarding health, education, food, shelter, clothing or public transport, even devoting all its resources . There is a frequent civil disturbance in Mexico, as these are made as manifestations to be against the government, as already mentioned in the president's party elected, the PRI is identified as a corrupt political party, the most significan in the last days is the massacre of the forty three students.