The Challenges of Foreign Trade in Mexico 2020.
10 October, 2019
Reflection in eyes, a window for stalkers
21 October, 2019
OPENING TO INTERNATIONAL COMMERCE AS A TOOL FOR PRODUCTIVITY.
To begin to understand how international trade works in our country and in the world, as well as the scope it can have within the economy and society, it is essential that we begin by defining it.
International trade includes all the activities of exchange of goods and services between two or more nations, we can include in this the operations of imports, exports, direct, indirect investments, capital flows, among others; and it arises because no country is so self-sufficient to be able to produce all the goods and services that its population demands, always at some point they will need support from a country that has developed certain advantages in a certain sector of products and services for good complement or expand your offer to the local market.
Throughout history we have been able to observe that trade has been very important for the development of communities, a process that began since the creation of colonial empires and became essential to meet the needs we have as a population, and Not only that, trade has also helped us to share social aspects among countries, and in this way share each of the features of each of the cultures we have, making it possible for example in our country to have access to food, decorative items, clothing, among other characteristics of countries in Europe, Asia, North and South America that allow us to know a little more about the culture and lifestyle of the people who live there.
The fact that this exchange of products arose, led to the creation of customs as institutions responsible for regulating the entry and exit of products in the countries in order not to fall into practices that jeopardize the internal production of each nation, creating as a tool of control the tariffs, which consist of the collection of a percentage on the value of the merchandise, as well as the non-tariff regulations that consist of all the part of permits, norms and regulations that a country establishes as obligatory for the entrance of certain items.
In the last decades worldwide there has been a tendency of the economies to the growth and commercial opening, that is to the elimination of the barriers to the foreign trade as they are mentioned before, tariffs and non-tariff regulations so that there is a more "free" flow so to speak. The countries that join this policy have shown that they tend to grow faster, innovate and increase productivity, as well as offer greater income and opportunities to their inhabitants, not only to those of a middle or upper class, but also to those with lower incomes giving them the possibility of accessing more affordable goods and services.
Within the local markets, being open to the international flow of merchandise allows new types of products or services to enter, with different designs, functions, technologies ... challenging in this way that local production has to advance at the same pace and adapt to try to offer similar or better products and services so as not to lose market share. This continuous improvement and innovation action also promotes at all levels, from the personnel that is hired who has to be more trained or specialized, the investment in the development and research for the improvement of processes, even in the government sector where begin to provide facilities for business development focused on sectors where the country is more productive.
In the specific case of our country, international trade has been for years of the main engines of growth and national development, in 2018 alone this activity represented 75.8% of the national GDP, due to the fact that over the years it has worked in a major commercial opening demonstrating the 13 trade agreements with the Mexico account, covering 50 countries with them. Although, our operations had been focused on countries with the United States, the constant challenges to trade, NAFTA renegotiation issues have prompted us to diversify and seek other markets to enter, being an important strategy because it makes us a country no longer so dependent on 2 or 3 countries and above all it creates a challenge to innovate and adapt to markets of which we have little or no experience.
In this way in Mexico and thanks to the commercial opening over the years, we have passed in our country the export of products of the primary sector without any process, to increasingly innovate and develop other sectors with greater added value such as manufacturing, where we have great strengths such as textiles, footwear and recently with the automotive and electrical-electronic sector, which also bring a positive flow in exports, attracting companies abroad that see the opportunity in Mexico to invest and develop, transferring capital and employment.
If you are interested in being part of the constant and growing world of international trade, if you have a product that you would like to export and explore in new markets or import inputs or materials to reduce costs in your company, technology to streamline your processes, to give a added value to your product or service and excel, do not hesitate to contact us, we are your solution in Foreign Trade.
