Overview

Modern Mexico comprises of 31 states plus the Distrito Federal (Federal District) containing the countries capital Mexico City. Mexico borders the United States of America in the and in the southwest Guatemala and Belize. To the east is the Gulf of Mexico and the Caribbean Sea, to the west is the North Pacific Ocean and the Gulf of California. According to the CIA World Factbook, in mid 2007 Mexico had an estimated population of slightly less than 109 million people.

Mexico City is located towards the southeast of the country and occupies an area where once was an Aztec city. Known as Distrito Federal the city comprises of 16 boroughs and is the economic and administrative core of the country.

Economy

The Mexican economy is highly reliant on trade relations with the USA. The World Factbook indicates that in 2006, 77.4% of the countries exports went to the USA which was in turn the source of 61.5% of imports. In 2007 the World Bank classified Mexico`s Economy as upper middle income.

The service sector increasingly dominates the economy nowadays over agriculture, industry and tourism. Natural resources include precious metals and ores, oil and gas. The 2006 BP statistical review of world energy shows Mexico to be the world`s fifth largest producer of oil, although in 2007 Alan Greenspan, the former chairman of the US Federal Reserve, cast doubt about the level of oil reserves. In 2005 figures from the Bank of Mexico placed oil as the largest earner of foreign exchange at USD$31,895 million followed by remittances at USD$20,035 million and in third place tourism at USD$11,803 million.

Mexico City is one of the world`s largest cities and as the capital, produces over a fifth of the countries GDP according to figures published by INEGI the Mexican statistics institute. The city is host to a number of large multinational legal and financial firms who have a presence in Mexico City such as Arthur Andersen, Deloitte Touche Tohmatsu and HSBC Bank.

According to the World Cities Study Group & Network (GaWC), Mexico City is a Beta World City (Major World City), as defined by a number of indicators such as familiarity of name, active influence and participation in international events and world affairs, a lively cultural scene, the presence of large foreign companies and an advanced communications infrastructure.

Infrastructure

For a long time, lack of proper investment in infrastructure has been a major problem for Mexico and a factor that as held back the economy. Transport infrastructure especially, has failed to meet the needs of the countries economic growth. President Felipe Calderon highlighted the problem and a new initiative the �2007-2012 National Infrastructure Program� was launched in mid 2007 costing around $37 billion.

The Mexican railroad system has for many years been in decline, though plans are being discussed for a high speed rail link between Mexico City and Guadalajara and a new freight line from the port of Manzanillo on the Pacific coast to Mexico City.

The main airport of the capital is Mexico City Airport (Benito Juárez International Airport) located within the eastern boundaries of the city, of which most areas can be reached easily with an extensive metro system. The airport connects the city most major destinations around the world with direct flights New York is around 6 hours and Europe is around 12 hours. Two other airports also serve Mexico City; Hermanos Serdán International Airport located around 60 miles to the south east of Mexico City close to the town of Puebla. Hermanos Serdán is mainly used for domestic flights but does have connections to Los Angeles and New York. Licenciado Adolfo López Mateos International Airport is the second and is located about 30 miles southwest near Toluca.

Mexico has several major seaports all dealing with freight and cargo and some additionally with petrochemical, fishing and cruise ships, with the proposed investment in infrastructure and improvement of transport links within the country, Mexico`s ports will begin to play a larger role in the economy.

Workforce

A 2006 estimate in the World Factbook shows Mexico`s workforce to be just short of 40 million and unemployment at 3.2%.

There are many universities and institutes of higher education throughout Mexico and around 400 in Mexico City, both public and private. The number of those entering higher education has grown dramatically over the years. Figures published by the University of Oslo indicate that in 1970 there were only 64,141 first year undergraduate students but by 2004 the numbers had risen to nearly half a million. However Mexico is currently experiencing a �brain drain` with graduates and professional looking for more profitable opportunities abroad. It is hoped that with the expected improvements to infrastructure more graduates will be encouraged to say in Mexico as demand for their expertise increases.

Standard of Living

For visitors to Mexico the country offers such diversity that whatever your taste is there is something in and around the country to satisfy most people. For business there is the prospect of dealing with companies in a growing free market economy and for tourists adventure, modern and ancient cultures, terrains that vary from deserts, mountains and excellent beaches on both coasts.

The Mercer Human Resource Cost of Living Survey 2006 ranks Mexico City in 81st position out of 144 cities world wide, with a score of 77.2. New York is the median for the index, in joint 10th place (100) and Moscow is in 1st place (123.9). Although its position makes it the most expensive city in Latin America, when compared to a number of other major cities globally it compares favourably cost wise.

Business Costs

Figures published by DTZ the global real estate advisers, based on total occupancy cost per workstation per annum, in 2007 Mexico City stood at $4,490. Out of 134 countries in the report Mexico City was placed in 107th position, cost wise cheaper than all but one U.S city, Cincinnati and in Latin America only the Mexican cities of Cancun, Monterey and Guadalajara were lower in cost.

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