Mexico Us Comparison

Rationale for choosing Mexico - Ikea

Mexico is the second fastest growing tourism market as of 2013.

11th ,most populated country in the world

Mexican GDP is $1.77 trillion with an annual growth of 3.9% and an inflation rate of 4.1%

Ranked 15th in market potential index (MPI) for emerging markets in 2013.

Yields a labour force of 50.64 Mn people.

Mexico is a very poor country , with almost half of its population living below the poverty line.

It presents itself a country in need of good quality low cost furniture.

NO major competition in the country, furniture is usually the product of little mom and pop stores.

An abundance of hotels and resorts through its 7 major cities that Ikea can create corporate furniture contracts with.

Mexico's 3.9 percent gross domestic product growth rate tops that of the United States, which stands at 2.2 percent.

While the United States struggles to bring its unemployment rate below 7 percent, the unemployment rate stood at 5.29 percent in Mexico, as of September 2013.

Mexico's $1.3 trillion economy has become increasingly oriented toward manufacturing in the 20 years since the North American Free Trade Agreement (NAFTA) entered into force. Per capita income is roughly one-third that of the US; income distribution remains highly unequal. Mexico has become the United States' second-largest export market and third-largest source of imports. In 2013, two-way merchandise trade reached nearly $507 billion. Mexico has free trade agreements with over 50 countries including Guatemala, Honduras, El Salvador, the European Free Trade Area, and Japan - putting more than 90% of trade under free trade agreements. In 2012 Mexico formally joined the Trans-Pacific Partnership negotiations and formed the Pacific Alliance with Peru, Colombia and Chile. Mexico's current government, led by President Enrique PENA NIETO, emphasized economic reforms during its first year in office, passing education, energy, financial, fiscal and...