The fuel prices could not be sustained globally, leading to the invention of other sources of energy, which consequently resulted in the decline of the oil prices. Foreign investments in the form of imports had a great impact on the actualization of industrialization in the country. The country’s mines and plantations were barely enough, which resulted in a huge surplus in the labor force (Hoshino, 2001). Sociology - organized groups, social institutions, and the new social movements, Several policies were drafted to ensure that the leadership of Mexico adopted democratic principles, especially in business. Cookies Policy, This critical writing on Industrialization of Mexico was written and submitted by your fellow student. However, the implementation of the ISI strategy also featured certain limitations to the Mexican economy (Monero-Brid, Santamaria, & Valdivia, 2005). Just as is the case with business relationships amongst companies, unforeseen circumstances may sometimes occur, thus hindering the reliability of one party about the execution of a certain requirement of an agreement with another party (Bruton, 1998). Individuals born out of Spanish and Indian parents were considered second and were referred to as mestizo. The northern border region of the country had copper mines that provided job opportunities, thus mitigating the unemployment problem that the country experienced at the time. Import substitution (IS) entails the reliance on domestic production by a country. Imperialism played a role in the establishment of the ISI policies because the powerful foreign powers put much pressure on the government to make adjustments. Most issues Before then, the US had played a critical role in helping the country attain independence. Additionally, the local currency was able to counter the strength of the dollar, which allowed local investors to engage in favorable trade globally. The ISI encourages the internal generation of products that a country would otherwise need to rely on another to achieve access, thus reducing instances of vulnerability. Additionally, monopolies enjoy tyranny in pricing that places consumers at a disadvantage. This means the government-owned and controlled all major industries in the economy. Import-substitution industrialization (see Glossary) began to make a slow advance during the 1930s, although it was not yet official government policy. Copyright © 2020 - IvyPanda is a trading name of Edustream Technologies LLC, a company registered in Wyoming, USA. The Mexican government also established domestic content requirements (DCRs) in 1962 for the automobile industry in a bid to increase innovation, promote the use of local material in the industry, and ultimately grow the economy. Although economists argue that protectionist policies “often equal the playing ground between goods and services produced locally and imports” (Ross, 1993, p.46), the strategic application of protectionist policies can utterly hinder the importation of goods, thus resulting in reliance of locally manufactured products. Therefore, it is often difficult for ISI compliant countries to find long-term ready markets for their products. Philosophy - as applied to the realities of developing nations Chiba, Japan: Institute of Developing Economies. His ‘no re-election’ slogan earned him favor with the people and created a false sense of democracy, especially considering the view that he often picked a candidate that he could manipulate into doing his bidding as his successor and endorsed the person to the public (Lewis, 2004). History - inside views of history in the making Soon after independence, the leaders who took over the management of government affairs in Mexico were dictators, and this discouraged the US from developing any trade links with the country. Latin American Research Review and politics—this outcome can largely be attributed to the success that Mexico had with import substitution industrialization and, perhaps more paradoxically, to the very adverse macroeconomic conditions under which trade reform was undertaken in the 1980s. Read your article online and download the PDF from your email or your account. We will write a custom Critical Writing on Industrialization of Mexico specifically for you for only $16.05 $11/page. Although the benefits of developing infant industries are numerous, overly enthusiastic ISI policies have the effect of crippling the economy by limiting the market opportunities that other countries enjoy through the practice of free international trade. In most areas of the world, the industrialization process occurred after the Agrarian Revolution, which was between the 17th and 19th centuries, following an increasing demand for basic commodities to satisfy the ever-growing populations.

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