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Market Screening for: Mexico Agricultural Equipment

Market Screening for: Mexico Agricultural Equipment. Erik Smith INB300 – International Business Lynn Bertsch August 4, 2005. Basic Need Potential. Agriculture is a significant portion of Mexico’s exports and production Farm machinery is a need for their economy

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Market Screening for: Mexico Agricultural Equipment

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  1. Market Screening for:Mexico Agricultural Equipment Erik Smith INB300 – International Business Lynn Bertsch August 4, 2005

  2. Basic Need Potential • Agriculture is a significant portion of Mexico’s exports and production • Farm machinery is a need for their economy (The World Factbook - Mexico, July 28, 2005, Economy Section)

  3. Import Restrictions • Due to NAFTA there are virtually no trade restrictions on importing farm machinery • Used machinery may be banned from import, especially if it is a motor vehicle (Used Equipment and Goods under NAFTA, n.d., para. 1-5)

  4. Price Controls • Mexico does not significantly compete locally for agricultural machinery • No price controls are set for almost any product, but especially for agricultural equipment so critical to their economy(The World Factbook - Mexico, July 28, 2005, Economy Section, para. 1)

  5. Government and Public Attitude Towards Buying American Products Governmental, and public, tensions focus on other agricultural issues, and not on machinery (Response to Criticism of U.S. Agricultural Policy and NAFTA, December 5, 2002, para. 1)

  6. Conclusion • Significant Need for Product • Extremely Limited Trade Barriers • Established Market (The World Factbook - Mexico, July 28, 2005, Economy Section)

  7. References Used Equipment and Goods under NAFTA (n.d.). Retrieved on August 4, 2005 from http://web.ita.doc.gov/ticwebsite/naftaweb.nsf/504ca249c786e20f85256284006da7ab/ea62156cda30408c852566c20070b943!OpenDocument The World Factbook (Mexico, July 28, 2005). Retrieved on August 4, 2005 from http://www.cia.gov/cia/publications/factbook/geos/mx.html Response to Criticism of U.S. Agricultural Policy and NAFTA (December 5, 2002). Retrieved on August 4, 2005, from http://www.usembassy-mexico.gov/releases/ep021205realitiesNAFTA.htm

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