economic opening in agriculture and food
Download
Skip this Video
Download Presentation
Economic Opening in Agriculture and Food

Loading in 2 Seconds...

play fullscreen
1 / 21

Economic Opening in Agriculture and Food - PowerPoint PPT Presentation


  • 257 Views
  • Uploaded on

Economic Opening in Agriculture and Food. Differential growth rates in import and export sectors Differential rates of opening in different sectors Food manufacturing hindered by poor performance in agriculture Limited infrastructure, including marketing and human capital

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Economic Opening in Agriculture and Food' - medwin


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
economic opening in agriculture and food
Economic Opening in Agriculture and Food
  • Differential growth rates in import and export sectors
  • Differential rates of opening in different sectors
  • Food manufacturing hindered by poor performance in agriculture
  • Limited infrastructure, including marketing and human capital
  • non-tariff barriers continue to distort trade
structural change
Structural Change
  • Limited role for government in economy
  • The market allocates resources
  • Mexican economy joins world economy
  • Increased competition
  • Reduction of subsidies
  • Privatization
  • individual initiative replaces state determination
why u s investors look to foreign markets
Why U.S. Investors Look to Foreign Markets
  • Mature domestic markets
  • Foreign markets offer:
  • - Faster growing economies
  • - Faster growing populations
  • - Attractive income/expenditure elasticities
  • Access to raw materials and/or inexpensive labor
  • Access to closed or restricted markets
direct foreign investment provides
Direct Foreign Investment Provides
  • Production technology
  • Commercial and financial technology
  • Access to international markets
  • Formation of human capital
  • Creates demand for inputs and services
  • Leads to formation of clusters
what do companies look for in a target country for dfi
WHAT DO COMPANIES LOOK FOR IN A TARGET COUNTRY FOR DFI
  • Attractive domestic market
  • Qualified and inexpensive labor
  • Abundant natural resources
  • Transportation advantages -- export platform
  • Stable political situation
  • Tax and capital policies
    • Free flow of capital
    • Ease of exporting and importing
what the mexican food industry needs
What the Mexican Food Industry Needs
  • Specialization
  • Technology
  • Financing
  • Economies of scale
  • "Merchandizing"
    • Product differentiation
    • "Niche" management
    • Brand loyalty
    • Price determination
joint ventures
Joint Ventures
  • THE MEXICAN PARTNER NEEDS
          • Capital
          • Technology
          • Markets
  • THE MEXICAN PARTNER OFFERS
          • Know-how for producing in Mexico
          • Knowledge of the Mexican market
          • Management of the distribution system
bank lending
Bank Lending
  • Cost of credit is high
  • Money is still scarce in the banking system
  • Banks are somewhat gun shy about lending, having been burned over the last couple of years
    • Lending to food industry has been seen as a risky
  • Banks still emphasize guarantees over the quality of the business
options available to mexican companies in a global economy
Options Available to Mexican Companies in a Global Economy
  • Go out of business
    • Close down
    • Sell out
  • Entrench into a strong regional or niche market strategy
  • Grow into a national player
why should a mexican company export
Why Should a Mexican Company Export
  • Develop market discipline
    • quality
    • reliance
    • understand competition
  • Generate foreign exchange
  • Manage market fluctuation risk
ad