Global Marketing Assignment Example | Topics and Well Written Essays - 3500 words

Global Marketing - Assignment Example Financial services sector has been experiencing rapid growth in recent times especially after tariff barriers have progressively been broken down with more and more nations joining the World Trade Organization. Egypt and Russia are two countries that vary widely not only in terms of economic prosperity but also in terms of prevailing culture. While the per capita GDP of Egypt is $ 6,200 (Central Intelligence Agency: Egypt Economy 2011) that of Russia is $15900 (Central Intelligence Agency: Russia Economy 2011). When analyzed through GE Matrix, both Egypt and Russia presented markets that would be highly attractive given the medium strength of Bats Bank as a business unit. (12manage 2011) While Egypt is the holder of proud legacy of a bygone glorious civilization, the present condition of the country is not that glorious and its main importance in world commerce and industry is in its guardianship of Suez Canal. But the positive aspect of Egyptian economy is its stable agriculture and large concentration of population along both sides of the Nile River that practically bisects the country. However, the high levels of public debt leave very little opportunity for Egyptian Government to invest large amounts in industry. Hence, the scope of other financiers entering the market is rather rosy. And, this is true irrespective of the current political turmoil that the nation is going through. Russia has finally been able to come out of the trauma of disintegration of Soviet Union and its loss of global superpower status. Free market mechanism has gradually taken a firm grip on Russian economy right from the advent of Perestroika a decade and a half ago and the political and economic stability of the country presents a very attractive opportunity for doing business there. Also, there is a dearth of finance in the market and financial services companies could do very well to bridge this gap. Any company entering Russian markets must take extreme care not to violate the s tatutory requirements of doing business in that country as any violation of local laws usually leads to exemplary penalty. 1.1 The motivation to do this research Globalization has become the norm of today’s industry and commerce. Business entities are finding it imperative that in order to survive and prosper in this age of cutthroat competition; they must cross national boundaries and mark their presence in foreign markets (Kay 1995). Foreign markets, though a treasure trove of opportunities, also present many issues and problems that need to be solved in a novel manner as business environments in these foreign shores need not be identical to those prevailing in the mother country. The primary motivation to do this research has been a desire to identify the process that a business entity must adopt to ensure that its global foray is a success. In the course of enquiry, differences in cultures and levels of economic prosperity between nations have been given a special importa nce as that only would enable one to properly understand and appreciate the multi-layered nuances and intricacies of global marketing. Financial services have an intimate relation with the culture and political climate of a country and cannot be described simply as the end result of a series of cold calculations of interest rates and principal

Management Theory Essay Example | Topics and Well Written Essays - 1250 words

Management Theory - Essay Example Many theories are formulated for different schools of thoughts with the help of fathers of Management. There are different management theories main are Scientific management theory, it clearly focus on the maximizing the efficiency by matching the job description with people; other is administrative management with clearly enlighten the creation of efficient systems in management and in organization. Then comes the behavioral management theories, these are developed both pre and post Second World War, this theory focus on the phenomenon of controlling the work force and leading them in a way to increase the performance. Lastly the management science theory that was born during Second World War and gained popularity in researchers, this theory focus on the measuring and controlling of organizations performance through quantitative and analytical techniques done by managers. To deal with formal organization and the concepts for enhancing the management efficiency Classical organization theories were born by Taylor formed scientific management concepts in 1947, Weber introduced the bureaucratic approach in 1947 and Fayol presented the administrative theory of the organization in 1949. These three management fathers have contributed a lot in the developing on classical theories. Adam smith was the founder of management theories, he observed two factories making pin wheel. In one factory a worker had to perform 18 tasks on his own to make a pin wheel and could make few thousands of pin wheel by the end of the day, where as in other factory 10 workers has expertise on one task and were able to manufacture 48,000 pin wheel per day. This gave birth to the idea of Job Specialization, it means that if workers are skilled in one tasks then and will do it repeatedly, they will have safe hands and will have faster rate of production with same quality. It will increase the efficiency and will lead to great organizational performance. Era of modern management was begun with t he theories of Fredric Taylor, when he noticed the national loss of men and started condemning the â€Å"awkward, inefficient, or ill-directed movements of men". This started in late nineteenth and early twentieth century. He transformed the old management system into new scientific management. Taylor actually wanted to increase the productivity of the organization through mutual understanding of trust between the managers, management and workers. Taylor suggested few techniques to improve the productivity and increasing the trust level. He suggested that 1) The rewards should be given to workers for high productivity. 2) Focus on the elimination of anxiety and stress from the work place. 3) Proper training and guidance should be provided to develop the capabilities in workers, 4) Eliminating the typical concept of â€Å"boss†, will increase the efficient and effectiveness at work? Further, Taylor also developed four principles for improving the productivity in scientific ma nagement theory that are 1) rule of thumb 2) scientific selection of the workers 3) Labor and management’s co-operation rather than the conflicts 4) Training and development of workers scientifically. However Taylor focused on breaking of a job into its parts, timeline for each part should be configured, and then reengineering the parts in a way that it minimizes the time and

Digital and Analog TV Essay Example for Free

Digital and Analog TV Essay On February 17, 2009, the Congress of the United States mandates the full shift to digital television transmission. The law is perceived to bring several benefits to the US viewing public. Broadcast frequency bands will be available mainly for public safety purposes, for example, police and fire department concerns. Remaining portions of the old TV broadcast spectrum can be offered for technologically advanced applications such as wireless broadband. The use of digital-capable television sets allows American viewers more choices of what programs to watch, since digital broadcasts can accommodate so much more programs (Federal Communications Commission, 2008). The law is not expected to be received openly by the television viewing public, 100 percent. Since it leaves them no choice but to convert millions of TV sets from analog to digital and give up the true fidelity that analog audio signals offer. This paper aims to point out the differences of digital and analog TV. By doing so, advantages and disadvantages of each can be compared and the individual viewer can make a better choice. Robert Silva (2008) lists differences between analog TV and Digital TV. He says these these differences lie mainly in the manner of transmitting broadcasts, signal content within a bandwidth in the broadcast spectrum, and the ability to broadcast in widescreen (169) format. Transmission Analog television transmission is based on and started after World War II with black and white broadcasts. It complied with the US analog TV standard known as NTSC. After several years, color broadcasting was introduced and accommodated under the NTSC system. The video is transmitted through the AM radio band while audio is transmitted through the FM band. The reception quality depends on the distance from the television station transmitters and obstacles in between. The farther away from the transmission station the TV reception is more prone to ghosting and other video disturbances. Although analog transmission can accommodate all the technicalities of high fidelity reception, the assigned bandwidth to a television channel restricts and limits broadcast quality. Digital TV is based on modern digital technology. It was designed for BW and color broadcasts as well as audio. It handles information in the same manner as computers: on (with a binary value of â€Å"1†) or off (with a binary value of â€Å"0†). Digital broadcasts allow viewers to see uniform reception quality regardless of the distance from the transmitter. Either the digital television receives the broadcast or the TV screen remains blank (it does not receive anything at all). Signal Content Digital TV broadcasts can accommodate complete video, audio, and other information signals within the same bandwidth. Furthermore, digital television can accommodate advances in technology like High Definition (HDTV) signals. In contrast, analog TV broadcast can only send limited traditional video signals. Format The development of wide screen format programming allows the broadcast of the 169 format. Today, widescreen LCD television are getting more popular; but still expensive. It offers the advantage of portraying on the TV screen wide footages of events without the camera lens distortion caused by distances. Furthermore, the widescreen image occupies the whole digital television screen. On the other hand, analog television sets will show widescreen images with portions on top and below blacked out. The widescreen format may not be important to the regular TV viewer. For millions of television watchers, the old analog screen is good enough. Conclusion Paul Wotel (2008) gives an objective assessment of the advantages and disadvantages of both digital and analog television. Some people may opt for the old traditional analog equipment such as phones while others prefer the cordless digital phones. If you want sound fidelity, he recommends the old phones. For more advanced applications, such as the PABX systems, he recommends a digital system. The same reasoning may be applied to television sets. However, the present situation requires new priorities which did not exist before. Today, there is much concern on security and priority is given to police and fire department communications. By requiring television stations to convert to digital transmission, most of the broadcast bandwidth can be assigned to security applications. The advantages of digital television allow the viewing public to benefit from the information age we find ourselves in. Digital television can also take advantage of the internet which has become part of the lives of many, particularly the young generation. Considering the continuing evolution in information and entertainment technology we just have to follow the trend out with old, in with the new.

Are Capital Asset Pricing Model Useful Finance Essay

Are Capital Asset Pricing Model Useful Finance Essay The CAPM model has generally been attributed to William Sharpe, but John Lintner and Jan Mossin also made similar individual derivations in 1960s. As a result of the model is even known as Sharpe-Lintner-Mossin (SLM) capital asset pricing model. The CAPM explains the relationship that should exist between the securities expected return and their risk about security returns. It is a direct extension of the portfolio models developed by Markowitz and Sharpe. CAPM derives the relationship between required rate of returns and the systematic risk of individual securities and portfolios. The model explains how different securities or assets in the capital market are priced. The CAPM provides an explicit measure of the risk premium. The CAPM can be expressed as follows: The portfolio that contains all the securities in the economy is called the market portfolio and it plays a crucial role in CAPM. The CAPM is the theoretical relationship that should hold for all securities and portfolios, both efficient and inefficient. The CAPM when plotted on a graph gives a line as depicted: The graphical version of CAPM is also known as Security market line (SML). The SML represents the relationship between beta factor and the expected rate of return f a security. This is also called risk-free rate. In equilibrium, all securities and portfolios plots should lie on the CAPM line. Capital asset pricing model has the following implications: Risk-return relationship for individual asset/securities. Identification of under and overvalued assets traded. Pricing of assets which have not yet traded in the market. Effect of leverage on cost of equity (rate of return required by equity shareholder) Capital budget decisions and cost of capital. (Source: Capital asset pricing model; Portfolio management from ICFAI publication page no.91) The CAPM has a variety of applications. Capital asset pricing model used for decisions relating to portfolio evaluation, capital expenditure, financing etc. The CAPM determines the cost of capital for discounting of future cash flows. CAPM is even assist in risk implications of mergers and acquisitions, product mixes and many more. CAPM has been the most widely used method in finance. Since the 1990s the CAPM has been started to be used in the calculation of risk-adjusted discount rate which has been a major contribution for capital budgeting. Capital budgeting is a key input for any organization so as to know the cost of capital for which companies use CAPM as they need market risk premium for calculating cost of capital. At present all MBA courses teach CAPM so as to calculate cost of capital. However the classic method for capital budgeting is to take Net Present Value (NPV). (Source: Bierman, H.J., 1993, Capital Budgeting:A Survey, Financial Management 22, 24) Investors should be cautious when applying the model to estimate assets returns and to evaluate investment performance. Empirical appraisal of CAPM The CAPM was developed on the basis of a set of unrealistic assumptions as the assumptions are not correct in their entirety. The CAPM must be tested empirically and validated before it can be used with any real confidence. The empirical test should look for the key results first, the positive relationship between returns and systematic risk and should appear to be linear. Second, test should attempt to assess the importance of market and company specific risk. Third, whether research questions on CAPM is conceptually possible. AT last CAPM if valid will assist in financial decisions. However, when analysis of bond is done, they do not plot on the SML. (Source: 80 International Research Journal of Finance and Economics Issue 4 (2006))Empirical analysis is done to evaluate the assets, their risk, analyze and to be placed in respective place. Then only hurdle rates can be calculated for the project to be undertaken. (Jagannathan and McGrattan [1995]. Limitations of CAPM CAPM is a useful model in dealing with the risk. However, it suffers from many Limitations firstly; the calculation of beta factor is very tedious as lot of data is required. The beta factor can be found by examining the securitys historical returns relative to the return of the market portfolio. Further, the beta factor may or may not reflect the future variability of returns. The assumptions of CAPM are hypothetical and are impractical. For example, the assumption of borrowed and lending at the same rate is imaginary and not practical. In practice the borrowing rates are higher than the lending rates. Secondly the earlier tests showed positive relation between returns and betas. However, the relationship was not strong as predicted by CAPM. All empirical studies testing CAPM have a conceptual problem. CAPM is an ex-ante model; that is data on expected prices are taken to test CAPM. Unfortunately, in practice the researchers or analyst have to work with the actual past (ex-post) dat a which will put up bias in the empirical results. (Source: capital asset pricing model www.ezinearticles.com)Third; beta is used as a measure for the securitys future risk. However there is no future data or information is available with the investors to calculate the beta. Hence, these investors take the help of past data to estimate the future prices of shares and the market portfolio. Thus, investors estimate beta using the historical data. One cannot expect the beta factor to be constant over time. It must be updated frequently. And at the same time CAPM is unable to capture the risk just only with the help of beta. (Source: capital-asset-pricing-model, www. professional-edu.blogspot.com)Fourth; CAPM assumes that the returns on the investments are tax free. However in todays life the assumption is wrong as investments are subject to capital gain taxes and further adding transaction costs. And the taxes depends on the amount of return higher the return higher the tax and lower t he return and lower the tax. Fifth; The CAPM has the assumption that the transaction costs are zero but it is not as such. In the capital market there is transaction cost for every transaction done, some investments hover below or above line which is discouraged due the transaction costs. And many investments involve significant transaction costs such as acquiring a business or real estate. (Stambaugh, R. F. 1999. Predictive regressions. Journal of Financial Economics 54) Doubt began to arise when taking a close look at the assumptions and these are reinforced by the empirical tests. The model focuses on market rather than total risk is clearly a useful way of thinking about the riskiness of assets in general. We do not know precisely how t measure any of the inputs required to implement the CAPM. This input should be ex ante but we only have ex post info available. The estimates used in the CAPM are subject to large errors. Debate The CAPM has been attractive in measuring the risk and return relation since three decades. With the help of CAPM the rate of return on different securities can be compared by the investor. With the comparison of expected rate of return on different securities investors/firms can wisely decide to invest in portfolio so as to maximize the return with minimizing the risk. (Source: CAPM from Book Financial Management by I M Pandey. But unfortunately, the empirical record is too poor to validate the way it to be used. The models problems may be due to theoretical failing or the unrealistic assumptions and the difficulties faces in applying the valid model. The model has been 1959 and since decades concerns have been raised on the number of studies about the model. There has been no historical relationship between returns and the risk i.e. the betas. (Source: Fama and French 1992) The conclusion interpreted from the statistical findings. The data are noisy to invalidate the CAPM. (Source: Christensen and Mendelson [1992] and Black [1993]. Despite criticisms, the general reaction has been to focus on alternative asset pricing models. (Fama and French [1992]. The economist show lack of empirical support for the CAPM which may be due to inappropriateness of assumptions made to facilitate the empirical test. For example, the return on stock market indices is good proxy for return on market portfolio but do not capture all assets in the economy such as human capital. Beta calculated for diversified portfolios are more accurate than that of the individual securities as grouping shrink beta range and hence reduces statistical power. To improve the empirical testing of CAPM numerous changes had been done in the past overcome the limitations or even to look for the subsequent alternate model to validate. At the same time the researchers and practitioners have began to look for multi-beta models that overcome the shortcomings of the CAPM. Fama and French (1992) and Fama and MacBeth (1973) use the same procedure but the results are totally different from each other. The former has no relation at one hand and the later has a positive relation between return and risk. Everyone is in a debate of whether to follow CAPM model or not? Where the companies even use CAPM for their capital budgeting process. But still some academic feels that those who choose the CAPM will actually not be getting worthless advice. (Source: Eugene F. Fama and Kenneth R. French, Journal of Finance, Vol. 47, 1992, 427-465)The model is often used for looking the performance of mutual funds and other portfolios. One of the big problem is forming p ortfolio by sorting stocks on the basis of price ratios but the average returns do not relate to market betas. ((Lakonishok, Shleifer and Vishny, 1994, Fama and French, 1996, 1998).) At NYSE, NASDAQ from 1963 to 2003 the average return on the book to market equity ratio portfolio rises monotonically from 10.1% p.a. to 16.7% for ten portfolios in U.S. securities but the positive relation between beta and return predicted by the model was absent. Whereas all NYSE stocks between 1931-1965 estimated that the results were consistent with the CAPM model. (Black, Jensen and Scholes 1972) Conclusion CAPM has been facing a lot of criticism in the recent times still it remains a useful tool for many i.e. for estimating the cost of capital, investment performance evaluation and efficient market event studies (Moyer et al 2001:204; Campbell et al 1997:183). In some of the recent empirical studies CAPM is said to be invalid. The CAPM is stated in terms of ex ante parameters, ex post tests cannot be accepted as an ultimate rejection of the CAPM and its parameters (Levy 1997:147). The CAPM should be judged on the basis of insights it provides into the risk/return relationship. Without the CAPM, the knowledge of the capital market and the market conditions would have been very limited (Karnosky 1993:56). Every three out of four CFOs use CAPM model to estimate the cost of capital. (Source: Graham and Harvey (2001). Corporate managers in U.S. confirmed in a survey the use of CAPM as a key tool for capital budgeting. Current MBA aspirant are taught to use CAPM for estimating cost of capita l. The CAPM should be continued with both individual tests and multi-factor models joint tests such as APT. Such testing will help understanding of the stock market pricing mechanism and the risk/return relationship. The capital asset pricing model has been employed in a wide variety of academic and institutional applications such as measuring portfolio performance, testing of market efficiency, identifying under and overvalued securities, capital budgeting etc. Apart the model have also been used in business by analyst, researchers and firms. CAPM has been the basis for modern capital market theory since 30 years, but with the emergence of new equity markets around the world during the last few years, accumulating research has increasingly created doubt on the models ability due to many cases arising where the model is not able to explain the correct movement of assets return. Despite its limitations and shortcomings, the CAPM model is a popular tool in the investment analysis. The simplicity of the model towards description of the equilibrium has made it quite popular among the users even today. There are other factors i.e. taxes, inflation, liquidity, and market capitalization and price earnings ratios apart from beta which affect required returns What believed is CAPM have significantly contributed to the security pricing theory, but applied in practice has got some defects and for which an extended CAPM should be applied or have to look for a new better model which should not have any deficiencies. The CAPM model is f or sure here to stay and attempts will continue to improve the model and to make it more useful.

hippies :: essays research papers fc

â€Å"Old hippies don't die, they just lie low until the laughter stops and their time comes round again.†(Stolley 238) Counterculture by definition is a culture, especially of young people, with values or lifestyles in opposition to those of the established culture. Counterculture way of life in the 1960s featured the ideas of, peace, love, music, drug use, freedom of sexuality, and much more, these ideas were mostly associated with the hippies. Hippies were mostly rebellious young people who wanted a change in there life style. Hippies experimented with many new ideas for the sixties. The Hippie-movement started in San Francisco in the 1960’s. It was an alternative way of life. The Hippie-movement was an uprising, display against war, and it was spreading the message of love and peace. Many Americans disagreed with the Hippy way of life mostly because of there beliefs of free sex, drugs, their music and their clothes. The hippy-revolution stunned many people The Life of the hippies was adverse to all authoritarian higher power structures since they are adverse to the hippie goals of peace, love and freedom. This is why the "Establishment" feared and covered up the hippie movement of the '60s, as it was a rebellion against the well-known order. Hippies did no believe in the routine 8 to 5 way of life and therefore were targets of hatred by the people who live there life that way. Nearly all hippies were without a job and got by everyday with help from the public social services. Hippies tried to change the world through reason and by staying true to what they believed. The Hippies had many philosophy’s in life, one of there core philosophy was, â€Å"Loving means accepting others as they are, giving them freedom to express themselves and not judging them based on appearances.†(Stolley 240) Bibliography 1969 Woodstock.

depression :: essays research papers

Om depression Psykiska tecken pà ¥ depression Mà ¥nga personer tror att de aldrig kommer drabbas av depression, men sà ¥ à ¤r det inte, vem som helst i vilken som helst à ¥lder kan drabbas av depression. Denna sjukdom à ¤r inget som de flesta egentligen vill prata om, utan det à ¤r kanske nà ¥got som man skà ¤ms à ¶ver. Psykiska sjukdomar har dessvà ¤rre i alla tider varit en negativ stà ¤mpel. Men en viktig sak att veta à ¤r att depression à ¤r en av de vanligaste sjukdomarna i Sverige och det gà ¥r att bli frisk. Ungefà ¤r 4 - 5 % av Sveriges befolkning har i vuxen à ¥lder, idag en depression som behà ¶ver behandling. Det finns olika typer av depressioner. Egentlig depression, melankoli, dystymi, och manodepressiv sjukdom à ¤r de vanligaste depressionsdiagnoserna. Alla mà ¤nniskor kan ibland kà ¤nna sig ledsna och nere, men detta à ¤r inte depression, detta à ¤r nà ¥got som drabbar alla i và ¥rt dagliga liv. Nà ¤r man à ¤r sà ¥ deprimerad sà ¥ att man inte ser nà ¥gon utvà ¤g och allt kà ¤nns svart och meningslà ¶st, dà ¥ det pà ¥verkar và ¥ra kà ¤nslor tankar och handlingar. Dà ¥ har man en depression. Depressioner kan kà ¤nnetecknas av nedstà ¤mdhet, hopplà ¶shet, trà ¶tthet, glà ¤djelà ¶shet, allmà ¤nt ointresse, hà ¤mning av olika aktiviteter, sjà ¤lvmordstankar och i svà ¥ra fall sjà ¤lvmord. Den allvarligaste depressionen à ¤r den djupa depressionen eller melankoli. Normal nedstà ¤mdhet brukar alla mà ¤nniskor klara av, hantera och bearbeta. Ärftliga faktorer och tidigare erfarenheter pà ¥verkar dock và ¥rat sà ¤tt att reagera och hur sà ¥rbara vi à ¤r. Det finns emellertid ett antal depressionstillstà ¥nd som à ¤r svà ¥rare och krà ¤ver bà ¥de medicinsk och psykologisk behandling. De vanligaste symtomen vid depression à ¤r: Nedstà ¤mdhet Avsaknad av glà ¤dje och intresse fà ¶r vanliga aktiviteter Aptit- och viktfà ¶rà ¤ndringar Sà ¶mnstà ¶rningar Fà ¶rà ¤ndrad motorik Trà ¶tthet och kà ¤nslomà ¤ssig frusenhet Nedvà ¤rderande sjà ¤lvbild Koncentrationssvà ¥righeter och beslutsvà ¥nda Tankar pà ¥ dà ¶den, sjà ¤lvmordstankar och sjà ¤lvmordsfà ¶rsà ¶k Sexuella stà ¶rningar, à ¥ngest och à ¶verdriven misstà ¤nksamhet mot omgivningen Depressiva sjukdomar à ¤r mycket vanliga och kan drabba vem som helst och i alla à ¥ldrar. Enligt WHO à ¤r depression pà ¥ và ¤g att bli en av và ¤rldens stà ¶rsta folksjukdomar. Cirka 500 000 svenskar berà ¤knas just nu ha en depression som krà ¤ver medicinsk behandling. Fyra olika diagnoser pà ¥ depression Fà ¶rstà ¤mningssyndrom kallas ibland ocksà ¥ fà ¶r affektiva sjukdomar och à ¤r den sammanfattade benà ¤mningen fà ¶r de tillstà ¥nd som à ¤r kopplade till fà ¶rà ¤ndringar i stà ¤mningslà ¤get. Hit rà ¤knas t.ex. egentlig depression, dystymi, och manodepressiv sjukdom. Là ¤kare delar in depressionen after dess svà ¥righetsgrad och hur den yttrar sig. Hà ¤r nedanfà ¶r à ¤r de vanligaste depressionsdiagnoserna. Egentlig depression Är det som beskriver bà ¤st det man menar nà ¤r man pratar om depression. Fà ¶r att stà ¤lla denna diagnos krà ¤vs det att symtomen nedstà ¤mdhet och/eller minskat intresse fà ¶r omgivningen skall finnas under stà ¶rre delen av dagen, sà ¥ gott som varje dag under minst tvà ¥ veckor. Sjukdomen kan vara av là ¤tt, mà ¥ttlig eller av svà ¥r karaktà ¤r, och vid de svà ¥rare depressionerna sà ¥ anvà ¤nds begreppet melankoli. En del personer som drabbats av depressioner varar det under mycket là ¥ng

Latin History

MEXICO ECONOMY Mexico is located in North America and known as United Mexican States. It consists of thirty-one states and a federal district with the capital of Mexico City. It is most populous city in the Earth. The GDP is $1.149 trillion and per capital income is $11,249. the income per capita is $7.310. It is 12th largest economy in the world as measured in Gross Domestic product. The GDP real growth rate is 4.8%. The average annual GDP growth during 1972 to 1981 was 5.5% whereas during 1981-1986 it was only 1.5%. The GDP’s main share is from services 69.4% and the industry captured 26.7%. From Agriculture it is only 3.9%.   The public debt is 23.3% of GDP. Mexico is highly dependent on exports to the United States. The quarter share of the country’s GDP is based on the exports to the United States. Hence the Mexican economy is strongly linked with the U.S. business. The 1994-year is Mexico’s bad year. Of course it starts with acceptance of NAFTA in the year beginning with United States and Canada and ends with dark Christmas with peso devaluation. During the year there are many political problems like Chiapas rebellion, assignations of political leaders. There was such situation the Mexico attacked with the crisis during 1982 and it got recovered by 7 years whereas during 1994 peso devaluation, it takes for 7 months only to get recovery.   During December 19, 1994, the exchange rate is 3.50 pesos per dollar. The consumer demand for goods collapsed. The Mexican interest rate on loans dramatically increased creating a shock in the banking system. Some businesses closed due to increase of market share. The exports increased with high exchange rate TRADE RELATIONSHIP BETWEEN MEXICO AND UNITED STATES 90% of Mexican trade has been put under free trade agreements with over 40 countries. The North American Free Trade Agreement is significant in this regard. 9% of Mexican exports go to the United States and Canada. And imports recognized 65% from these two countries. The exports to Untied States are 88.4% and imports from United States are 68.4%. Mexico is dependent on trade with United States. The U.S. exports to Mexico include electronic equipment, motor vehicle parts and chemicals and in case of Mexican exports to the United States are Petroleum, cars and electronic equipment. Mexico depends more than on U.S. economy whether it may be good or bad. The NAFTA relation between U.S and Mexico completed more than 10 years. Of course, after the peso devaluation, the Mexico economy become stable, perhaps the United States plays major role. Initially, there was a free trade agreement between Canada and United States called Free Trade Agreement during 1988. Thereafter it was included Mexico and fresh agreement is established in the name of NAFTA. It is trilateral agreement. It is an agreement among the United States, Canada and Mexico. The agreement indicates elimination of tariffs of the produced traded in the respective nations i.e. United States, Canada and Mexico. It is planned to phase out tariffs over a period 15 years. Besides the restrictions were said to be removed from many categories, which includes motor vehicles, computers, textiles and agriculture. MEXICO POLITICAL The type of government is Federal republic. Representing political parties are Institutional Revolutionary Party, National Action Party, Party of the Democratic Revolution, Green Ecological Party, Labor party and several small parties. The politics of Mexico are dominated by the three political parties in Mexico i.e. National Action Party (PAN), Party of the Democratic Revolution (PRD) and the Institutional Revolutionary Party (PRI). The recent federal presidential elections were held on July 2, 2006. President Zedillo and president Fox continued with trade liberalization and several FTAs were signed with Latin American and European countries. Thus Mexico became one of the most open countries in the world of trade. Most Important reform during President Fox period is implementation of Freedom of Information laws. With this effect Mexico City and 26 states supposed to fight against corruption. Hence Mexico becomes international model by usage of FOIA laws and enforcement mechanisms. REFERENE: https://www.cia.gov/library/publications/the-world-factbook/geos/mx.html http://countrystudies.us/mexico/65.htm http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/0,,pagePK:180619~theSitePK:136917,00.html http://www.state.gov/r/pa/ei/bgn/35749.htm