Write A 700 To 1,050-Word Paper On Politics And Economics ✓ Solved

Write a 700- to 1,050-word paper on the political and econom

Write a 700- to 1,050-word paper on the political and economic environments of Mexico and Puerto Rico. Explore the political structures and notable politicians in each country. Examine economic factors such as major industries, unemployment, currency, and trade with other nations for each country. Include an introduction and conclusion.

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Introduction

This paper compares the political and economic environments of Mexico and Puerto Rico. The analysis outlines each jurisdiction's political structure and identifies notable political actors, then examines key economic indicators: major industries, unemployment, currency, and international trade relationships. Understanding these dimensions is essential for businesses, policy analysts, and students of comparative politics and economics.

Political Environment: Mexico

Mexico is a federal presidential republic with a separation of powers among executive, legislative, and judicial branches (CIA World Factbook, 2023). The President serves as both head of state and government and is directly elected for a single six-year term (sexenio). The bicameral Congress consists of a Senate and a Chamber of Deputies, while state governments enjoy a degree of autonomy under federalism (World Bank, 2023).

Notable contemporary politicians who have shaped Mexico’s recent politics include Andrés Manuel López Obrador (commonly AMLO), leader of the Morena party, who has been a dominant force since his 2018 election and has driven a platform emphasizing social programs and state involvement in strategic sectors (Council on Foreign Relations, 2022). Important institutional actors also include the National Electoral Institute (INE), autonomous courts, and powerful state governors in regions such as Nuevo León and Jalisco (CFR, 2022; INE, 2023).

Key political dynamics include the consolidation of Morena at the federal level, debates over energy policy and state control of hydrocarbons, concerns about rule of law and security due to organized crime, and efforts to reform institutions (World Bank, 2023; IMF, 2023). These factors shape Mexico’s investment climate and public policy priorities.

Political Environment: Puerto Rico

Puerto Rico is an unincorporated territory of the United States with a local republican form of government under the Puerto Rico Constitution. Executive power is vested in an elected governor; the legislature is bicameral (Senate and House of Representatives), and the U.S. federal government retains authority over federal law, defense, currency, and interstate commerce (CIA World Factbook, 2023).

Notable political figures at the time of analysis include the Governor, who directs local policy and recovery efforts following fiscal and climate shocks, and Puerto Rico’s Resident Commissioner in the U.S. Congress, who represents Puerto Rican interests at the federal level (Puerto Rico Planning Board, 2023). Political debates center on fiscal recovery following bankruptcy-like restructuring, infrastructure resilience after hurricanes, and the island’s political status—statehood, enhanced commonwealth, or independence (Brookings Institution, 2022).

Economic Environment: Mexico

Mexico is an upper-middle-income economy with diversified sectors. Major industries include manufacturing (especially automotive, electronics, and appliances), petroleum and energy, agriculture, and services such as tourism and finance (World Bank, 2023). Mexico’s integration with global value chains—particularly through the United States–Mexico–Canada Agreement (USMCA)—has made exports of manufactured goods a central driver of growth (USITC, 2023).

The currency is the Mexican peso (MXN), managed by Banco de México. Labor market indicators have shown relatively low open unemployment rates historically (often in the single digits), but underemployment and informality remain challenges that affect income security and tax revenues (INEGI; Banco de México, 2023). Remittances are a significant source of foreign exchange and household income, and oil revenues remain strategically important despite declining production compared with historical peaks (IMF, 2023).

Mexico’s main trading partners are the United States, Canada, China, and the European Union. Exports are concentrated in manufactured goods and oil, while imports include capital goods and industrial inputs (WTO, 2023). Macroeconomic vulnerabilities include sensitivity to U.S. demand, commodity price swings, and domestic security concerns that can raise business costs.

Economic Environment: Puerto Rico

Puerto Rico’s economy uses the United States dollar (USD), facilitating financial and trade integration with the mainland U.S. Key industries are pharmaceuticals, medical devices, manufacturing, tourism, and services. The island hosts many multinational manufacturing plants that benefit from proximity to U.S. markets and a skilled workforce in specific high-value sectors (Puerto Rico Department of Economic Development, 2023).

Puerto Rico has faced chronic fiscal and economic headwinds—high public debt culminating in a restructuring process, population decline due to out-migration, and infrastructure damage from hurricanes—factors that contributed to stagnation in the 2010s and early 2020s (Government Development Bank reports; IMF, 2022). Unemployment has fluctuated, often above comparable U.S. mainland rates, though labor participation and employment in pharmaceuticals and manufacturing provide relatively high-value employment opportunities for many residents.

Trade for Puerto Rico is heavily oriented toward the United States, with much of its manufactured output destined for mainland markets. Federal policies, insurance matters, and transportation costs shape the competitive environment (U.S. Bureau of Economic Analysis, 2023).

Comparative Observations

Politically, Mexico is a sovereign federal state with full international agency, whereas Puerto Rico operates as a U.S. territory with constrained sovereignty but strong legal and economic ties to the United States. Economically, Mexico’s large domestic market and role in North American manufacturing contrast with Puerto Rico’s service- and manufacturing-based, U.S.-oriented economy dependent on external federal frameworks and dollarization.

Both face structural challenges: Mexico wrestles with security and institutional strengthening; Puerto Rico continues fiscal recovery and resilience-building. For investors and policymakers, the contrasting legal and currency regimes—peso versus dollar, sovereign monetary policy versus U.S. federal oversight—are decisive factors in strategy and risk assessment.

Conclusion

Mexico and Puerto Rico present distinct political and economic environments. Mexico’s federal presidential system and export-oriented industrial base make it a major player in regional trade networks, while Puerto Rico’s territorial status, dollar currency, and specialized manufacturing economy tie it closely to the United States. Both jurisdictions have notable political figures and enduring policy priorities—security and institutional reform in Mexico; fiscal stability and infrastructure resilience in Puerto Rico—that will shape economic prospects in the coming years. Thorough country-specific analysis is necessary before engagement, and stakeholders should monitor political developments, labor-market indicators, and trade flows to inform decisions.

References

  • CIA World Factbook. (2023). Mexico. https://www.cia.gov/the-world-factbook/countries/mexico/
  • CIA World Factbook. (2023). Puerto Rico. https://www.cia.gov/the-world-factbook/countries/puerto-rico/
  • World Bank. (2023). Mexico overview. https://www.worldbank.org/en/country/mexico/overview
  • International Monetary Fund (IMF). (2023). Mexico: 2023 Article IV Consultation. https://www.imf.org/
  • International Monetary Fund (IMF). (2022). Puerto Rico: Selected Issues. https://www.imf.org/
  • U.S. International Trade Commission (USITC). (2023). USMCA and Mexico trade data. https://www.usitc.gov/
  • Puedes de Planificación (Puerto Rico Planning Board). (2023). Economic reports and statistics. https://jp.pr.gov/
  • Banco de México. (2023). Monetary policy and economic indicators. https://www.banxico.org.mx/
  • U.S. Bureau of Economic Analysis. (2023). Puerto Rico economic accounts. https://www.bea.gov/data/intl-trade-investment/puerto-rico
  • Council on Foreign Relations (CFR). (2022). Mexico’s politics and security. https://www.cfr.org/

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