Mexico Is The Second Largest Economy Of Latin America Essay

According to the World Bank (2016), â€Å"Mexico is the second largest economy in Latin America† (Iliff, 2016). Mexico is one of the largest auto producers and exporters. â€Å"Mexico, produced 3.4 million vehicles in 2015, raking seventh largest vehicle producer in the world and first in Latin America† (Administration, I. T. (2016). Automotive manufacturing is growing, and large automotive companies such as Nissan, Mazda, Volkswagen, and GM, who have plants already established in Mexico, are now planning to expand their facilities. Half of the cars sold in Mexico are made there, and the other half is imported (Iliff, 2016). The business cultural environment in Mexico consists of families driving small old 1990’s pick-up trucks. In Mexico, owning a pick-up means a lot, because this type of cars are used for family, affordability, durability, efficiency, and convenience. Some include Nissan King Cab, Ford F-150, and Chevy Cheyenne and Silverado. As of 2015, Mexico has broken a new record of new vehicle sales of 1.38 million units, a 19% gain since 2014 and decreased used vehicles sales import of 180,000 from 1.6 million. â€Å"The future consumption is expected to increase by 500,000 units and could reach up 2 millions units† (Iliff, 2016). Mexico had freely imported used vehicles from the United States, and due to that, there was a large demand for used cars. The industry officials argue, â€Å"A crush of used cars hurts new cars. If a customer can not get a decent price at trade-in, deals fallShow MoreRelatedHow Does Economy Affect The Mexican Economy965 Words   |  4 PagesThe Mexican economy is currently the 15th largest economy in the world with a GDP of $2.2 trillion (â€Å"Index of Economic Freedom†, 2017). In comparison, the United States had a GDP of $18.57 trillion in 2016 (â€Å"United States GPD†, 2017). 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