Compare and contrast Spain and Mexico and their labor laws, unions and fringe be
ID: 1113992 • Letter: C
Question
Compare and contrast Spain and Mexico and their labor laws, unions and fringe benefits: and foreign investment laws in these countries. Do country risk analysis and compare straights and weaknesses and both countries? Which country would you invest 20 million dollars today and why?
Spain
Strengths
Weaknesses
Good performance and competitiveness in some specific sectors
High fiscal deficit and public debt
Presence of large international companies
Polarized politics, lack of accountability and corruption
Bridge between the world and Latin America
Weak legal system
Disastrous labor market
Large economy
Poor education and training
Faulty territorial organization
Infrastructure network
High private debt
Mexico
Strengths
Weaknesses
Sound macro-policy framework
Fiscal position highly sensitive to oil price (30% of public revenues)
Moderate debt ratios
Sensitive to US business cycle (around 3/4 of exports)
Strong, pro-business reform dynamics
Security issues related to drug-trafficking
Structural business environment exceeds Latin American average
Skewed income distribution (geographically as well as among socio-economic groups), still high poverty levels
Durable political framework with stable handovers of power
Member of OECD
Easy access to capital markets
Rule of Law and control of corruption below Latin America’s average
Support from IFIs likely if needed
Spain
Strengths
Weaknesses
Good performance and competitiveness in some specific sectors
High fiscal deficit and public debt
Presence of large international companies
Polarized politics, lack of accountability and corruption
Bridge between the world and Latin America
Weak legal system
Disastrous labor market
Large economy
Poor education and training
Faulty territorial organization
Infrastructure network
High private debt
Explanation / Answer
Answer : I will invest 20 million dollars in Mexico. Because there is a moderate debt ratio in Mexico while in Spain there is a high private debt. In Mexico, there is strong, pro-business reform dynamics, structural business environment exceeds Latin American average while in Spain there is disastrous labor market, Poor education and training. In Mexico there is durable political framework with stable handovers of power while in Spain Polarized politics, lack of accountability and corruption.Mexico is a member of OECD and there is easy access to capital markets.Mexico sound macro-policy framework. From the above discussion it is clear that Mexico is the good platform to invest than Sain.
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