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Protectionism Blog

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     In the article below by  Chris  Isidore , it talks about how Mexico imposed a valued $3 billion in tariffs on US exported goods, such as bourbon, different types of cheese, pork, apples, potatoes, and a variety of steel products. These tariffs cost between 15% and 25%, which could increase the prices of US exports by the percent they will have to pay in tariffs  ( Isidore ).  For simplicity purposes, I chose to model just the tariffs on apples that Mexico imposed on the US.       If the Mexican government decides to impose a tariff of around 15-25% on imported apples from the US, that will cause S(world) to shift up to S(world) + tariff. Now the price of apples is at Pw + T. Further, since there is a price increase, quantity demanded falls from Q2 to Q4 (people don’t want to pay such high prices). This prompts domestic producers in Mexico to increase the production of apples to Q3 from Q1, which makes it so their revenue i...
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Fiscal Policies Implemented in Mexico

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       During COVID-19 (2021), Mexico implemented quite a number of different fiscal policies in order to help ease the effects many people were facing from this pandemic. One of the policies that were implemented was increased spending in healthcare so that the Ministry of Health in Mexico would have enough money to provide the proper resources to individuals. It is said 0.4% of Mexico's GDP (around 5 billion dollars) was spent additionally on healthcare (Policy Responses). Citizens seem to be in favor of this fiscal policy due to the fact that they now have access to healthcare with the proper resources. The government doesn’t seem to favor this policy as citizens could take advantage of the improved healthcare, but not go back to work. This fiscal policy seems to be put in place so that citizens can get the healthcare they need in order to get back to work and resume paying taxes to the government. However, people may not go back to work because their work ...
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OECD of Mexico

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Real GDP for the last 10 years: https://tradingeconomics.com/mexico/gdp Real GDP per capita for the last 10 years:      2021: 10080.00 USD     2020:  9800.00 USD https://tradingeconomics.com/mexico/gdp-per-capita#:~:text=GDP%20per%20capita%20in%20Mexico%20is%20expected%20to%20reach%209800.00,according%20to%20our%20econometric%20models. Real GDP growth per year for the last 10 years:     2021: 3.53% https://tradingeconomics.com/mexico/gdp-per-capita#:~:text=GDP%20per%20capita%20in%20Mexico%20is%20expected%20to%20reach%209800.00,according%20to%20our%20econometric%20models. https://countryeconomy.com/gdp/mexico#:~:text=The%20GDP%20figure%20in%202020,million%20with%20respect%20to%202019. Unemployment Rate: https://tradingeconomics.com/mexico/unemployment-rate Inflation Rate:      2021: 3.26%     2020: 3.4% https://www.statista.com/statistics/275414/inflation-rate-in-mexico/ https://www.macrotrends.net/countries/MEX/mexico...
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