The Mexican Economy
On December 20, 1994, in an attempt to make Mexican products more competitive, Mexican President, Ernesto Zedillo Ponce de Len, devalued the Mexican Peso. Unfortunately, attempts at keeping the Peso to only a fifteen percent devaluation failed. The Peso dropped almost forty percent (Roberts, 1). It went from 3.5 to almost 7.5 peso's to the dollar before it stabilized. The devaluation not only sent shockwaves through the Mexican economy, but through the rest of the world. Why should the world now risk it's money to save Mexico? Why not just let the Mexican economy and government collapse? To calm these shock waves United States President Bill Clinton, acting on his executive order, organized an approximately $49.5 billion aid package ($20B U.S., $17.5B International Monetary Fund, $10B BIS, $1B Consortium of Latin American countries, $1B Canada) to Mexico (Department of State Dispatch, 78). This move could make globalization a friend or a foe in Mexico's case. Friend, because it opens opportunities for foreign countries and companies to further expand their economies and influence. Foe, because one country's economic problems is the world's economic headache. Unfortunately, it
Gary McWilliams. "A BORDER TOWN FEELS THE PESO'S PINCH." Business Week. 6 Mar 1995: America Online. Paul Craig Roberts. "MEXICO: DON'T BLAME SALINAS FOR ZEDILLO'S MISTAKES." Business Week. 4 Mar 1996: America Online. With the threat of rebels in the south or the Institutional Revolutionary Party (PRI) possibly overthrowing the government, the rewards that foreign investors were about to reap from the large scale Mexican privatization If a socialistic government were to take control of Mexico, then every other rebel group and socialist party in Latin America would now seize this opportunity and throw their own rebellions--possibly erupting a situation r debt defaults by Mexico would place the burden of repaying these loans on the United States shoulders sent the dollar to new post World War II lows against the Japanese Yen and German Mark (Zimmerman, 58.) The Mexican government is broke, citizens unhappy, rebels are itchy, and opposition leaders are gaining influence. All these are ingredients to a bad situation getting worse--without money or influence, the Mexican government is bound to be overrun.
Some common words found in the essay are:
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Approximate Word count = 1831
Approximate Pages = 7 (250 words per page double spaced)
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