The economic prowess held by a certain country is one of the most decisive factors in becoming a world superpower. A country’s economy is one of the most influential elements that is needed in order to attain control and domination in the international economic arena. As such, individual countries strive hard to strengthen its economy. Each country develops its own economic policies which it believes can boost their chances and capabilities of expanding its market in the international arena, hence, extending its influence over other smaller and less powerful countries.
One of the strongest and most established economy over the history is that of the United States of America. Over a certain period, their economy has been proven to be highly influential. Their economic policies have been focused on finding a variety of ways to strengthen their influence upon foreign markets. On the other hand Mexico although a rising economy, has been proven to be dependent on the American economy (“Mexico’s Economy,” 2008). Hence, Mexico suffers the drastic consequences brought about by the slump or success experienced by the economy of the U. S.
The U. S Economy The U. S economy has already established its position as the world’s most technologically advanced, powerful and largest economy. Their market-oriented policies meant that private firms and individuals have the upperhand in making decisions that are believed to be beneficial for their economy. They have wielded their policies in such a way that it can be more flexible than their competitors, which can better enhance their chances of strengthening more their hold for international domination (“United States, The World Factbook,” 2008).
In addition, the U. S market engined a number of technological innovations that secured them a greater leap of advantage from their competitors. As such, the innovations they held were able to reach distinct foreign markets which greatly added to their economy’s appeal. In line with these technological advances, they used such inventions and discoveries to power up their campaign on their “economics of war. ” Through the use of such advanced weapons, they engaged in the war as either the main participant of the war or the supplier of advanced ammunitions.
Through this tactic, they were able to conquer larger markets with their increasing military and political supremacy. On the aspect of foreign trade, the U. S economy is the biggest proponent and supporter of trade liberalization and globalization. They have used the tenets of liberalization in order to gain the supremacy from exporting products. Their economic strength is highly dependent on the success of international trade and balances (“Foreign Trade and Global Economic Policies,” 2001). Alongside these measures, the U.
S economists have fought hard to maintain fiscal and monetary policies that shall secure them from possible inflation occurences. The policies that were enacted became their tools to maintain sustainable growth and at the same time promote economic expansion while avoiding recessions (“Monetary and Fiscal Policy,” 2001). However, despite these measures and the strong influence that U. S economy has imposed on smaller and less powerful countries, their economy has slowed down. Their GDP rate started to fall and is predicted to drop lower in the next few years (“The American Economy,” 2006).
The Mexican Economy In contrast to the U. S economy who is highly advanced in terms of technological innovations, the Mexican economy is still operating on a rough mixture of semi-modern and outmoded industry and agricultural production (“Mexico, The World Factbook, 2008). However, recent developments in Mexico allowed them to expand their capabilities by developing more advanced technologies in the fields of communication and transportation. These developments, however are powered by Mexico’s trade and economic relationships with more advanced countries such as the United States and Canada.
These advances are heavily reliant with Mexico’s distinct and strong commercial partnerships with these two countries. Their consented participation upon the signing of the North American Free Trade Agreement (NAFTA) increased their activity under the tenets of liberalization and globalization. In addition, their commitment towards trade liberalization guided them in consolidating and promoting fiscal and monetary policies that shall help them ensure a credible and stable economy.
This deliberate openness to foreign trade and investment became an attractive economic feature that increased their foreign direct investments (“Country Briefings: Mexico,” 2008). However, despite the promising economy that Mexico has to offer with their rich natural resources, Mexico is heavily tied on the U. S economy. Any slowdown that the U. S economy will experience, it is more likely that Mexico will experience the same. U. S Economy vs. Mexican Economy According to the Index of Economic Freedom, the United States economy is 80. 6% free while the Mexican economy is 66. 4% free (“Index of Economic Freedom,” 2008).
From this feature alone, it can be recognized that U. S can freely operate their economy without the dictates of other countries, while the Mexican economy flourishes or falls down according to the trend that “superior” countries may impose upon them. This happens because of certain distinct factors. One is due to the fact that the American economy is technologically advanced compared to the Mexican economy. Thus, U. S gets the upperhand in dictating their terms and conditions to smaller countries, Mexico in particular, because they are highly dependent to the technology that U.
S supplies them with. Another distinct factor is that the U. S controls the larger market in terms of trade and investments, thus Mexico only takes partakes the role of an active international player while U. S holds the control over them. This is true not only on Mexico’s case but in other less developed countries as well. And while it is true that both U. S and Mexico adhere to the tenets of free trade, it is still observable that U. S is in control of the trade agreements. While the Mexican economy operates under certain tariff rates and export controls, the U.
S economy operates more freely with less restrictions. Thus, even in a nutshell, it is observable why the U. S is more advanced and economically more powerful. The economic diversity employed by U. S in their policies is so distinct which enables them to gain control over other economies. And as such, this control over foreign markets allows them to dictate the market grounds, and hence, be on top of the others. References Country Briefings: Mexico. (2008, June 16). Economist. com. Retrieved June 20, 2008, from http://www. economist. com/countries/Mexico/profile. cfm?
folder=Profile-Economic%20Data Foreign Trade and Global Economic Policies. (2001 February). International Information Programs. Retrieved June 19, 2008 from http://usinfo. state. gov/products/pubs/oecon/ Index of Economic Freedom. (2008) The Heritage Foundation. Retrieved June 20, 2008 from http://www. heritage. org/index/countries. cfm Mexico’s Economy. (2008, May 18). Economist. com. Retrieved June 19, 2008 from http://www. economist. com/research/backgrounders/displaybackgrounder. cfm? bg=629589 Mexico, The World Factbook. (2008, June 10). Central Intelligence Agency.
Retrieved June 19, 2008 from https://www. cia. gov/library/publications/the-world-factbook/geos/us. html Monetary and Fiscal Policy. (2001 February). International Information Programs. Retrieved June 19, 2008 from http://usinfo. state. gov/products/pubs/oecon/ The American Economy. (2006, August 26). Economist. com. Retrieved June 20, 2008 from http://www. economist. com/business/displaystory. cfm? story_id=8079134 United States, The World Factbook. (2008, June 10). Central Intelligence Agency. Retrieved June 19, 2008 from https://www. cia. gov/library/publications/the-world-factbook/geos/us. html