Impact of Deepwater Horizon Oil Spill

This assignment delves into the multifaceted impacts of the Deepwater Horizon oil spill, exploring its effects on the marine environment, coastal communities, and the global economy. It examines scientific studies detailing the ecological damage caused by the spill, including the fate of spilled oil, harm to marine life, and the disruption of delicate ecosystems. The assignment also analyzes the economic consequences, such as lost revenue from fishing and tourism, cleanup costs, and the impact on local livelihoods. Furthermore, it considers policy responses and international collaborations aimed at mitigating the damage and preventing future disasters.

Business Across borders- Mexico 1
INTERNATIONAL BUSINESS ACROSS THE BORDRES
By (Name)
Professor’s Name
Location
Institution Name
Date

Business Across borders- Mexico 2
Table of Contents
EMERGING MARKET OPPORTUNITIES FOR NEW INVESTMENTS IN MEXICO....3
Introduction............................................................................................................................3
Incentives in Mexico Promoting New Investments................................................................4
Economic Influence................................................................................................................4
Geographical Influence..........................................................................................................4
Political Influence...................................................................................................................5
Socio-economic influence......................................................................................................5
Health and wellbeing..............................................................................................................5
Technological benefit.............................................................................................................5
Natural resources....................................................................................................................6
Barriers to the facilitation of foreign investors.......................................................................6
Trade Policies.........................................................................................................................7
Mexico FDI- Foreign Direct Investment................................................................................8
Foreign Currency and Exchange............................................................................................9
Summary...............................................................................................................................10
Recommendation..................................................................................................................10
Reference..............................................................................................................................12

Business Across borders- Mexico 3
EMERGING MARKET OPPORTUNITIES FOR NEW INVESTMENTS IN MEXICO
Introduction
Mexico has turned into an extremely alluring and an attractive developing business
sector for remote financial specialists i.e. Foreign investors. It has a $1.26 trillion GDP
making it Latin America's second-biggest economy in the world, setting it as the thirteenth
largest country on the planet (Acemoglu, D. 2008). It has effectively taken an interest in
multilateral and provincial associations and discussions like the World Trade Organization
(WTO), Asia-Pacific Economic Cooperation (APEC), the Organization for Economic
Cooperation and Development (OECD) and the Latin American Integration Association
(ALADI) (Adámek & Kappel 2015). Moreover, the nation has signed 32 Reciprocal
Promotion and Protection of Investments Agreements with 33 nations, 10 unhindered
commerce assertions spreading over 45 nations, nine fractional degree and monetary
complementary understandings inside the structure of the Latin-American Integration
Association (ALADI), and is an individual member of the Trans-Pacific Partnership
Agreement (TPP) (Bonea et al 2014). Given that the Mexican government has consented to
exchange arrangements in three spheres, the nation has turned into a stage from which a
potential market of over a billion buyers, representing 60 percent of the world's GDP, can be
accessed (Edwards 2011).
GDP can be said to be money related esteem measure of the market estimation of all
merchandise and ventures joined created at a particular interim of time, yearly or even
quarterly (Evans & Kay 2008). Furthermore, in 2016 the general principles for the national
anti-corruption defilement framework were endorsed. The change includes three primary
pillars to battle defilement. To begin with, the main review office of Mexico, which regulates
incomes and consumption of the central government, extended its degree to administer
neighbourhood organizations and explore uses lately (Francois & Shiells 2008). Second,

Business Across borders- Mexico 4
general society organization secretariat, which is in charge of observing and, where fitting,
rebuffing open authorities associated with defilement issues, will now extend its range and
endorses and, under the new plan, the leader of the office must be approved by the Senate
(Hildebrandt et al 2005). Also, third, the workplace of another and self-ruling hostile to
defilement prosecutor has been made, which will be in charge of arraigning people. This new
office will be a piece of the new lawyer general's office that will be self-sufficient in 2017
(Jordaan 2008). Mexico is one of the developing nations most open to outside direct venture
and investment, the world's fifteenth biggest FDI beneficiary, which streams to the nation
wavering firmly relying upon the entry and flight of vast global gatherings (Kellenberg
2009).
Incentives in Mexico Promoting New Investments
Economic Influence
Mexico is presently a noteworthy assembling place for gadgets and electronics. That
incorporates the majority of the flat-screen televisions which have the market in the United
States. It likewise makes therapeutic and medical gadgets and aviation parts including
aerospace parts (Naray & Narayan 2010). It also has trade agreement allowing its
manufacturers to have duty-free access to 60 percent of their operations thus attracting and
drawing foreign investors and industries. The government also allows privatisation of
industries from investors and also a partnership with the government is promoted. It has also
been promoted by the rapid growth in banking sectors, thus facilitating foreign investments.
Geographical Influence
It is strategically located. It is located and positioned between North and South
America. This provides a readily available market for every goods and service produced in
this nation (Sargent & Matthews 2009).

Business Across borders- Mexico 5
Political Influence
The Mexican government is very positively and definitively interested and oriented to
foreign investment in the country (Torres & Vela 2003). It has established new investment
opportunity policies to facilitate and promote it as well as economic reforms policies. Also,
the availability of new government headed by President Enrique Peña Nieto has highly
promoted and facilitated foreign investors. Some portion of its change and improvement
strategy and plan was a guarantee to extend key open foundation and diligent industrial
advancement across the country. These changes will keep on generating business openings
and opportunities for investors over a long haul and period. Privatisation was highly restricted
by the previous government where they almost monopolised everything in Mexico.
Socio-economic influence
Mexico has a young and skilled human force with adequate experience and skills.
They also share a common Latin language with the Americans, creating an easy way and
mode of communication with the North and South Americans (White et al 2012). With a
mutual and distributed Western and Hispanic culture, U.S. producers frequently think that it’s
direct and undeviating to market and offer their administrations and items in Mexico.
Health and wellbeing
The interest in healing centre framework is intended to guarantee access to wellbeing
and health administrations in Mexico. There are 87 extended projects in this segment
requiring a venture of 5 billion USD, 27 of which are government duties, and 60 of which are
key ventures (Kostka et al 2011).
Technological benefit
It has improved infrastructures that are modern and of up to date. These include
advanced and developed well transport network system that enhanced and promotes swift
trade. It has also an advanced and highly advanced telecommunication channel and sectors
(Mariano et al 2011). They include Telmex and American Movil owned by Carlos Slim Helu.

Business Across borders- Mexico 6
Natural resources
It has a large scale production of oil. It has been ranked the 8th oil producer industry
in the world. It produces almost to 3million barrels of oil per day (Michel et al 2013). This
has enabled attraction of foreign investors and entrepreneurs in that they invest in this oil
wells and get something small at the end of the day, thus increasing the GDP of Mexico,
creating an attractive opportunity for them. It has also an effective, advanced and lowered
rice electric generation that facilitates the establishment of production industries and
companies. Due to its fertile alluvial soil good for farming and production. Mexico has a
larger opportunity for investors to invest in farming. That is for investors interested in
agribusiness and agriculture. This only involves crop farming. They produce cotton,
vegetables and also coffee at a large scale, thus an investment for foreign investors. It is also
rich in minerals that lead to the production of silver and selling that attracts investors. Today,
it is the 7th largest car producer industry on the planet. It reduces high-class automobiles i.e.
auto manufacturing in the world which also attract foreign investors. Private and foreign
investors have the chance to put resources into sustainable power source- renewable energy,
by marking a PPA (power purchase agreement) with the Federal Power Commission
(Comisión Federal de Electricidad, CFE), and are too permitted to take an interest in the
offering or the development of plants for residential utilisation and domestic use in the
nation.
Barriers to the facilitation of foreign investors
Most sensitive and important products and companies must obtain and acquire import
or export licences to enable their commodities to get out of the country. Different items have
different specific controls depending on the import and export policies (Malini & Jais 2014).
Business illustrations of controlled items transported by couriers subjected to these directions,
rules and regulations. Fluid, gas, and powdered items can't be dispatched by couriers, even in
little amounts. Rather, these items must be delivered as a consistent shipment with the

Business Across borders- Mexico 7
utilisation of a tradition and regular agent. Some exceptional treatment may apply on account
of samples proposed for exploring, item enrolment, or affirmation. Various measures
managing the Mexican material merchants and textile industries are also in place,
correspondingly influence different U.S. exporters. These measures incorporate a merchant
registry, the foundation of reference costs. Textile industries and attire items must be enrolled
in the Official Registry No.11 for material/clothing part. The directions to enlist can be found
at SAT Official Registry website.
Some of the challenges are also that a few parts are held only for the Mexican State or
Mexican nationals. Combining and merging is a major test challenge. It involves dealing with
the general population and public, and also the blended organisation and at the same time be
worried about the clients and keep all the partners cheerful (Mishra 2007). Another challenge
is that the social and cultural contrast, and agreeing that one won't fundamentally get the
business merely at the best cost. Standards in which people are using in general segment to
purchase equipment are exceptionally old. Knowing how to come to the administrators and
clients, and serving them to their interest and desire, other than the managerial staff, is too
another test and barrier. It is also that In spite of the fact that there are only four major
network administrators and operators in the versatile showcase and mobile market, America
Movil Telcel frustrates rivalry with moderate and relatively high rates of costs.
Trade Policies
An exceptional taxation on generation and administrations (IEPS) is evaluated to the
importation of mixed drinks and alcoholics, cigarettes and stogie- cigars, among others. This
tax may differ from 25 to 160 percent relying upon the item. Mexico additionally has
executed what are called "Sectorial Promotion Programs (PROSEC)" which diminish MFN
levies to 0 or 5 percent on an extensive variety of critical data input sources required by
Mexico's export production department and sectors. This program incorporates exactly 20

Business Across borders- Mexico 8
diverse industries or companies segments and influences 16,000 tax line things. Mexican
organisations must be enlisted under this program to take an interest, and it can be hard to
qualify. Also, Various U.S. exports out there are liable to anti-dumping obligations that
confine access to the Mexican market. Items subject to these obligations presently
incorporate or meat, apples, fluid burning pop, hydrogen peroxide, monoethylene glycol
mono butyl ether, ammonium sulfate, stearic corrosive, security paper, and welded carbon
steel pipe.
Mexico FDI- Foreign Direct Investment
Foreign Direct Investment in Mexico elevated by 5903.80 USD Million within the
fourth period or annual period of 2017, which averaged 2606.71 USD Million from 1960
until 2017, achieving an all-time excessive of 20854.60 USD Million inside the 2nd region of
2013 and a document low of -63.ninety USD Million within the 2d quarter of 1960. Foreign
direct investment in Mexico and different nations display the foreign possession of
manufacturing facilities (Stevenson & Wolfers 2008). To be categorised as the foreign direct
investment, the percentage of the foreign possession needs to be identical to at least 10
percent of the cost of the organisation. The funding may be in production, services,
agriculture, or different sectors (Bonea et al 2014). It could have originated as inexperienced
field investment (constructing something new), as acquisition (buying a present organisation)
or joint task (partnership).The diagram below shows an average graph of Mexico FDI up to
date.

Business Across borders- Mexico 9
Foreign Currency and Exchange
These trade exchange rates are distributed and governed by Banco de México for
instructive purposes and they don't have official legitimacy and validity. Cross-trade rates,
changed over into Mexican pesos utilising Banco de México FIX conversion scale and
market-normal U.S. dollar reciprocals for the euro and Japanese yen, and that are distributed
every day by the International Monetary Fund (IMF). Regardless of whether it is occasion
day in the U.S., and the IMF stays shut, the trade rates are gathered straightforwardly from
Reuters that is the first wellspring of information utilised by the previously mentioned global
money related association. For the Canadian dollar, the conversion scale is the one distributed
by the Bank of Canada in its official site. Source: IMF, Bank of Canada and Banco de
México.
When a country has a higher exchange rate, it attracts investors and foreign business
persons. This is because it provides an effective business ground within that given nation. In
cases where a country has a low exchange rate, all investors will be influenced and shall not
have any plan with that given country in that it shall lead to love per capita income (Brooks
2012). The figure below shows Mexico exchange rate for an average period of one year

Business Across borders- Mexico 10
Summary
As we all know, I any country, foreign investors are usually the critical point of its
income. They help in money generation hence improving the GDP of a given country. For
them to come to that given country, a favourable environment must be created for them. This
includes both political, social and cultural environment. There should be also rules and
policies to be followed by this investors so as to avoid them being so much into that given
nation. In Mexico, the government has created this environment for its investor. It has also
created a room for partnership so as to enhance and promote its performance. Nothing is
usually perfect. Despite the benefits that are there to be enjoyed by the foreign investors in
Mexico, they still face some shortcoming. This should only open the eye for the government
and provide a clear way in which it operates and regulates the loopholes.
Recommendation
The government of Mexico should allow the higher number of private and foreign
bodies and organisations into their country for a higher GDP and a better one than they have.
They should also regulate their rules, norms and regulations including policies that govern
their investors so as to keep them rather than making them feel like Mexico isn’t the best

Business Across borders- Mexico 11
place to invest in. Then, the government should have a more advanced system of
communication and transport so as to avoid cost efficiency to foreign investors in the
country. The country should also boost its security system so as the investors should feel like
they are safe and good to go on and conduct their activities.

Business Across borders- Mexico 12
Reference
Acemoglu, D. (2008). Introduction to modern economic growth. Princeton University Press.
Adámek, E., & Kappel, S. (2015). Empirical Results for Some Monetary Areas According to
Optimum Currency Area Criteria. Acta Universitatis Agriculturae ET Silviculturae
Mendelianae Brunensis, 63(3), 877-885.
Bonea, D., Urechean, V., Bonciu, E., & Constantinescu, E. (2014). ROUNDUP READY
–(RR) SOYBEAN AND ITS BANNING IMPACT IN ROMANIA. Annals of the
University of Craiova-Agriculture, Montanology, Cadastre Series, 43(1), 67-72.
Edwards, S. (2011). Exchange-rate policies in emerging countries: eleven empirical
regularities from Latin America and East Asia. Open Economies Review, 22(4), 533.
Evans, R., & Kay, T. (2008). How environmentalists “greened” trade policy: Strategic action
and the architecture of field overlap. American Sociological Review, 73(6), 970-991.
Francois, J. F., & Shiells, C. R. (Eds.). (2008). Modeling trade policy: applied general
equilibrium assessments of North American free trade. Cambridge University Press.
Hildebrandt, N., McKenzie, D. J., Esquivel, G., & Schargrodsky, E. (2005). The effects of
migration on child health in Mexico [with comments]. Economia, 6(1), 257-289.
Jordaan, J. A. (2008). State characteristics and the locational choice of foreign direct
investment: Evidence from regional FDI in Mexico 1989–2006. Growth and Change,
39(3), 389-413.
Kellenberg, D. K. (2009). An empirical investigation of the pollution haven effect with
strategic environment and trade policy. Journal of international economics, 78(2), 242-
255.
Kostka, J. E., Prakash, O., Overholt, W. A., Green, S. J., Freyer, G., Canion, A. ... & Huettel,
M. (2011). Hydrocarbon-degrading bacteria and the bacterial community response in
Gulf of Mexico beach sands impacted by the Deepwater Horizon oil spill. Applied and
environmental microbiology, 77(22), 7962-7974.

Business Across borders- Mexico 13
Malini, H., & Jais, M. (2014). The Volatility of Indonesia Shari’ah Capital Market Stock
Price Toward Macro Economics Variable. Indonesian Capital Market Review.
Mariano, A. J., Kourafalou, V. H., Srinivasan, A., Kang, H., Halliwell, G. R., Ryan, E. H., &
Roffer, M. (2011). On the modeling of the 2010 Gulf of Mexico oil spill. Dynamics of
Atmospheres and Oceans, 52(1-2), 322-340.
Michel, J., Owens, E. H., Zengel, S., Graham, A., Nixon, Z., Allard, T. ... & Rutherford, N.
(2013). Extent and degree of shoreline oiling: Deepwater Horizon oil spill, Gulf of
Mexico, USA. PloS one, 8(6), e65087.
Mishra, P. (2007). Emigration and wages in source countries: Evidence from Mexico.
Journal of Development Economics, 82(1), 180-199.
Narayan, P. K., & Narayan, S. (2010). Carbon dioxide emissions and economic growth: panel
data evidence from developing countries. Energy policy, 38(1), 661-666.
Rodrik, D. (2008). The real exchange rate and economic growth. Brookings papers on
economic activity, 2008(2), 365-412.
Sargent, J., & Matthews, L. (2009). China versus Mexico in the global EPZ industry:
Maquiladoras, FDI quality, and plant mortality. World Development, 37(6), 1069-1082.
Stevenson, B., & Wolfers, J. (2008). Economic growth and subjective well-being: reassessing
the Easterlin paradox (No. w14282). National Bureau of Economic Research.
Torres, A., & Vela, O. (2003). Trade integration and synchronization between the business
cycles of Mexico and the United States. The North American Journal of Economics and
Finance, 14(3), 319-342.
White, H. K., Hsing, P. Y., Cho, W., Shank, T. M., Cordes, E. E., Quattrini, A. M., ... &
Brooks, J. M. (2012). Impact of the Deepwater Horizon oil spill on a deep-water coral
community in the Gulf of Mexico. Proceedings of the National Academy of Sciences,
109(50), 20303-20308.

Business Across borders- Mexico 14