Economic Development

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that fall in the “developing” category. In Mexico, they are facing their worst recession since the beginning of last century. Poverty rates in Mexico are rapidly increasing with almost half of the population living below the poverty line. According to “CIA World Factbook,” 47% of Mexican natives live below the asset based poverty line. Some contributing factors to the rise of poverty are unemployment rates and rising inflation rates. The rising rate of inflation, which is the price level for a good or service over time, has steadily risen year after year. Since the beginning of 2005 the inflation rate in Mexico has risen from 3.3% to as high as 6.4%, according to Tradingeconomics.com. Also according to that website, the unemployment rate recently reached its highest ever at just under 6% (“World Fact Book”).
These problems are well known and are causing much despair to their economy. So, what is the Mexican government doing to help this problem? According to a ...

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important to consider how important Mexico is to the benefit of the U.S. Since the United States is the main contributor in the exports from Mexico, this deal works both ways. Just recently Mexican farmers made a deal with PepsiCo to eliminate a middle man when selling their crops. An article in the New York Times, “For Pepsi, a Business Decision with Social Benefit,” informs us that this deal gives them payment for their crops up front. It also allows the farmers to have enough “credit to buy seeds, fertilizers, insurance and farming equipment (Storm, B1).” This deal will help eliminate the farmer losing money by getting taxed by a middle man, and having the money up front helps ...

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