Mexico is considered and semi-periphery country, which is an industrializing, mostly capitalist country that is positioned between the periphery countries and core countries. These countries play a major role in mediating economic, political and social activities which link core countries with periphery ones. Mexico has the 12th largest economy in the world and it is the 5th largest of emerging markets in the world of emerging markets and also has a labour force of 78 million. But poverty and income disparity has been a big problem in Mexico. The overall poverty rate is 44.2% and currently 17% of the population lives below the countries poverty line. Poverty in Mexico is reflected in the country’s poor ratings in all sorts of development such as: infrastructure and institutions, education, labour market efficiency and innovation. The levels of poverty are …show more content…
These two factors are the drug war that broke out and the recent economic crisis. Mexico thrives on drug wars, corruption and inequalities so that only the rich make more money than they already have. While the Mexican economy has not been directly affected by this drug war, it has had a negative impact on the countries international reputation. This makes the countries government look weak because it cannot control the violent cartels and the corruption of the law enforcement. It is also very difficult to start your own independent business. There are administrative laws and specifications of registering a shop, there is confusion in the maze-like tax system and extreme rules to hire or fire worker. These factors are among the biggest reasons for which entrepreneurship isn’t widespread. Entrepreneurship is a big job creator and economy booster for a country; it also creates a more competitive economic market and decreases