Pestle analysis of United States V/s. Mexico

Running head: INTERNATIONAL MANAGEMENT
International Management
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1INTERNATIONAL MANAGEMENT
Pestle analysis of two countries United States V/s. Mexico
PESTLE analysis provides a holistic view of the nation in terms of historical, current
and the future perspectives. It given a brief insight of the critical issues that are presented
through a detailed strengths, challenges, threats and issues analysis for each of the elements
PESTLE, i.e., Political, Economic, Social, Technological, Legal and Environmental (Aithal
2016). However, PESTLE analysis of United States Versus Mexico is presented below:
United States Mexico
Political USA is the 2nd largest
democracy.
There is a fair and
transparent elections held
(Corbin 2015).
The political environment in
USA is relatively stable.
It is considered to be one of
the great destinations for
FDI (Foreign Direct
Investment)
Mexico is a federal republic.
Elections are done in every
six years and they do not
meet the international anti-
corruption standards.
Political disruptions are
frequent in Mexico and it is
threatening the regular
disruptions of the supply and
sales of the businesses
(Crowley-Matoka and
Hamdy 2016).
Economic The per capita GDP growth
in U.S.A is 42%.
The rate of unemployment
has been fallen since 205
The level of incomes of the
people has improved and
increased since 2016.
As compared to Mexico and
other countries like India
and China, labour is not
cheap in USA.
USA is considered to an
economic superpower
The situation of the labour
market in Mexico has been
improved to a significant
level and per hour earnings
of people have increased.
People in Mexico have more
disposable income to spend
on different items.
Profitability of the retail
industry is likely to be
increased in the near future.
There is an economic
slowdown in Mexico and
this have stalled the growth
of retail industry.
The per capita GDP growth
in Mexico is 31%.
Labour is cheap in Mexico
Social The population in U.S.A
was 114 million as per the
year 2015.
It is very diverse nation.
Every 1 out of 3 Americans
are African, Native
Millennial in Mexico tend to
shop online.
There is an increased use of
smartphone usage and
technology among the
youths