International Business Across Borders: PESTLE Analysis and Competitive Advantages in Mexico

Running head: INTERNATIONAL BUSINESS ACROSS BORDERS
International business across borders
Name of the Student
Name of the University
Author note

1INTERNATIONAL BUSINESS ACROSS BORDERS
Executive summery
In the above study, it has been identified that the government of Mexico has introduced
various strategies in order to bring the development in the Mexican business industry.
However, due to lack of political and Economic support in every places the business
organizations may face various challenges. In this study, the external environment of the
country has been discussed by using PESTLE analysis. On the other hand, competitive
advantages of the business organizations have been analysed. It has been suggested that if the
government takes the firm step towards handling the political violence in the country, it will
attract the foreign investors towards investing in the Mexican market.

2INTERNATIONAL BUSINESS ACROSS BORDERS
Table of contents
Introduction................................................................................................................................3
Country overview.......................................................................................................................3
PESTLE analysis........................................................................................................................4
Competitive advantages.............................................................................................................7
Influence of foreign currency...................................................................................................10
Existing trade policies, system, barriers and incentives of the country...................................11
The existing level of foreign direct investment........................................................................11
Recommendation......................................................................................................................12
Conclusion................................................................................................................................12
Reference list............................................................................................................................13

3INTERNATIONAL BUSINESS ACROSS BORDERS
Introduction
The international business procedure is getting affected due to the geographical
location of the country. As stated by Miranda-de la Lama et al., (2018), especially the
business rules and regulation in the border area. Due to its location in between the south and
North America, the business industry of Mexico gets influenced by both the countries. Here
the study has focused on Mexico, which is situated in the southern portion of North America.
In this study, the external environment of the country has been discussed by using PESTLE
analysis. On the other hand, competitive advantages of the business organizations have been
analysed. The existing trade rules and regulation of Mexico have been highlighted in this
study. Impact of foreign currency in the business industry has been discussed. Depending on
this the rate of foreign investors and their interests towards business development in Mexico,
the study has discussed the position of the country in international business industry. At the
end of the study, depending on issues in the market required suggestion have been provided.
Country overview
Business industry of Mexico has the higher level of contribution in the economy of
the country. As per the GDP, it is in the 15th position in the world. Large portion of the
Mexican GDP comes from service and industry sector (Grande, Islas & Rios, 2015). Mexico
has the significant business market for the food and beverages, aerospace, motor vehicles,
clothing, tobacco, mining and petroleum industry. In the year 2017, GDP rate of the country
was $1.147 trillion. It has been identified from a recent report that it has second largest
economy in Latin America. However, due to various socio-cultural gaps, the Mexican people
are facing various challenges regarding its business development. The economic condition of
the country is good is few places, but in the case of rural areas, people are facing many
challenges due to lack of financial backup (Aguilar et al., 2015). As the country is located in