The Trade Policy Environment of Mexico in a Corporate Perspective A Case Study of the Bus Industry in Mexico

Abstract

The multilateralism, regionalism and bilateralism trends are so dominant that nations, industries and individuals are fundamentally affected by them. The recent stagnation of the multilateral negotiations, the deepening and widening of regional integration especially in Europe as well as the spread of bilateralism reveals the dynamic nature of the trade liberalization developments. Moreover, the importance of following up and further studying these issues is emphasized.

Mexico’s trade activism and parallel participation in multilateral, regional and bilateral negotiations makes it a perfect example of a multifaceted trade policy environment. The Mexican bus industry, due to its importance to the country and its engagement in international trade, serves as a suitable case when examining the effects of such a complex trade environment on the corporate level. The Swedish MNC Volvo Bus provides a good paradigm on which the above mentioned effects can be exemplified.

This study identifies the effects of the trade policy environment on the corporate level and suggests that deep knowledge and understanding of the way the trade policy is implemented, stands for a vital comparative advantage. The aim of the present study is to highlight the importance of the decisions made by the national and supranational administrations, regarding trade issues, on the corporate world.