Doing Business

Doing Business in Mexico 2015

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5 Doing Business in Mexico 2015 Cultural and social life Mexico City is considered the most important center of Mexico's very active cultural life, particularly as regards art, museums, theaters, musical organizations, book publishers, and libraries. Similar facilities, although less numerous, are also available in the other principal cities and state capitals. There has been an increasing trend toward participation in many types of sports, and facilities for spectator sports are widespread. National tourism by automobile, bus and airline has become a major part of the overall travel industry, particularly during school vacation periods. The many resorts on the coastlines and in the interior, as well as Mexico's numerous colonial cities, typical town and archaeological sites are the preferred destinations. Foreign tourism has also been increasing, with Mexico becoming one of the world's preferred tourist destinations in the 14th place (source: Sectur). The Economy General description Mexico has a mixed economy, with the government, its agencies and government-owned or -controlled companies expected to reduce their traditionally dominant position in the areas of telecommunications, public utilities and petroleum. This would be more evident as Mexico is gradually changing with the energy and telecommunications reforms. Private enterprise is the principal factor in manufacturing, mining, commerce, entertainment, and the service industries, including construction and tourism. During the 80´s and 90´s the government sold to private enterprise a number of its holdings in what are classified as non-strategic industries. Foreign investment is found most frequently in the manufacturing, mining and financial sectors. The economy is fairly broad-based and dedicated mainly to supplying the needs of the large and rapidly increasing population. However, proximity to the United States also provides a large market for the export of manufactured and semi-manufactured goods, as well as substantial income from foreign tourists. Federal taxes on oil production and export provide a substantial portion of the total resources of the federal government. The foreign debt is quite significant, amounting to approximately USD$146.8 billion as of April 2014. The public portion of the debt has been renegotiated several times, and Mexico is current as regards payments of interest and principal on the debt. Moreover, Mexico has sufficient resources, in its international reserves (USD$188.8 billion in April 2014), to cover its external debt due in future years. Several steps have been taken to control inflation levels. The contributions of the various sectors to GDP are shown in Table I. 1

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