Mexico | International trade: theory versus rhetoric

Summary

The process of relocating companies, or nearshoring, has placed Mexico in the international spotlight, with great expectations about the arrival of companies that seek to bring (part of) their production closer to the US market, which in turn would boost Mexican exports.

Key points

• Key points:
• Regarding trading partners, the United States is the leading destination for Mexican exports. Mexico's main supplier is this same country, with which there has been a trade surplus in recent years, closing in 2023 at 234.7 billion dollars.
• Based on this data, it is usual to read evaluations about whether the country is doing "good or bad" based on how exports evolve compared to a previous period.
• Paul Krugman, the Nobel Prize winner in Economics in 2008 for his contributions to the theory of international trade, uses a parable to illustrate the biases that can cloud the analysis of international trade.

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