Economic situation in Mexico in 19 – 20 century. Essay

The workers were paid a minimum of 30 cent an hour and were granted basic human right while in the United States working. During this same time period the United States paid Mexican exporters for their metals such as silver and copper. Fast-forwarding a little bit, when oil production and prices were surging Mexico increased its social spending however with the economy growing came inflation followed by the drop of oil prices and increase of interest rates. The peso had become overvalued. In order to prevent a devaluation and further fleeing of investments, the Bank of Mexico borrowed 360 million dollars from the Federal Reserve with the promise of stabilizing the economy. In 1976 the peso had lost half of its value. A new president came into order in 1977 discovering new oil and started producing over a million barrels a day at the price of 3 dollars a day by 1981 it was 35. This made Mexico the world's fourth highest exporter of oil.
Fast-forwarding a little bit more, the president put in place in 1994 (Zedillo) started a ton of reforms trying to steer Mexico in a direction to finally have a democratic nation. He took steps to stop the corruption within the PRI and government he replaced the entire Supreme Court as well as made his attorney general of an opposing party. He also loosened the PRI grip on the government. Zedillo did not personally pick his successor in the traditional way. Instead he had the Mexican people hold a primary to select the PRI candidate. In 2000 the voters of Mexico had their first real election that was clean and fair and finally elected someone else from another party. It was the first time in 71years that another party took office. For the residents it was the end of a political regime that influenced nearly all aspects of Mexican life in the 20th century.
The next thing Ill talk about is the North American Free trade Agreement (NAFTA). Which all came about in In 1990 when the President of Mexico at the time, Carlos Salinas de Gortari, approached then U.S. President George Bush with the idea of forming a free trade agreement. President Gortari's motivations in pursuing an FTA with the United States were to increase economic growth by attracting foreign direct investment boosting exports, creating industrial jobs and giving the Mexican economy a growth stimulus. The North American Free Trade Agreement is an agreement between Canada, the United States and Mexico. The agreement was officially put into place on January 1, 1994.
The agreement made a trade bloc between the three countries eliminating the barriers of trade. The agreement also made a promise to eliminate practically all tariffs over the next 15 years. The final aspects of the deal weren't fully implemented until January 1, 2008.The objectives of NAFTA included the following eliminate barriers to trade in, and facilitate the cross-border movement of, goods and services between the territories of the Parties, promote conditions of