Strategic International Business Management 3
is Spanish. The capital of Mexico is Distrito Federal and the city is recognized for its
socialism, athleticism, and diverse cultural aspects (Bernard, 2011).
Political Factors: LIDL has established that the political subdivision of Mexico encourages
the understanding of the country’s system of politics. In the country, “federal authorities”
have the mandate to enforce law statutes with actions of such federal authorities influencing a
big figure across provincial boundaries. Apart from that, the country’s tax rates vary from one
province to another with local authorities affecting such patterns (Chatman and Eunyoung,
2013, pg. 11). Issues on poverty are caused singly by political and geographic factors. The
country has a political-economic system that creates a sense of poorness. Apart from that, the
government applies World Bank and The International Monetary Fund that accommodate
most business (Bruce, 2016).
Economic Factors: In Mexico, economic impacts differs from one industry to the other.
Otherwise, FDI (Foreign Direct Investing) in the country has increased with time from $ 14
billion in 2009 to $ over 21 billion in 2017. The World Bank recognizes the country as one of
the upper-middle-income states (Knapp, 2006). However, about 44% of the Mexican
population is poor and thus, a high rate of economic growth is required to leverage the country
from the situation. Contrarily, the country has grown with a mean rate of 4% within a period
of one year. The country is also U.S.’s third largest trading spouse and second-largest export
market. The table below shows the economic outlay of Mexico in 2017:
GDP (official rate of exchange) Approx. $ 3trillion
GDP Per Capita Approx. $ 18,590
Annual existent GDP growth Approx. 7%

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