PEST Analysis

During the semester you will research the business climate of Mexico by applying a Political, Economic, Socio-cultural, and Technological analysis, known as a PEST analysis. You will turn in the entire paper on module 6. Instructions and rubrics will be provided via Moodle.

a) Political analysis: Here you should include an overview of Mexican political development in relation (but not limited) to its government, main political parties, stability, friendliness toward international businesses (e.g., taxes, potential confiscation) and how their system is different or similar to the U.S.     

b) Economic: Include the degree to which Mexico is a free market vs. a government-controlled market, current growth stage, a recent history of growth, growth projections, principal industries and exports, and principal trading partners. What are their top 10 exports and imports? Who are their top 5 trade partners, in other words, who do they export the most, and who do they import the most from? Do they have trade deals with them? Are they members of the WTO? Have they benefitted from the WTO, and if so, in what way? And finally, explain by providing 3 examples of how Mexico has won or lost with NAFTA. 

c) Socio-cultural: Regarding the social- cultural analysis, include demographics, such as population trends, the age distribution, per capita income, percentage living in urban versus rural areas, and important and distinct cultural factors, e.g. religion, language, family, values, rituals. 

d) Technological: Include data regarding Mexican technological advancements in terms of research funding, manufacturing, legislation, intellectual property issues, technological education, etc. Lastly, you must conclude with a brief summary of the general business climate in Mexico. Furthermore, if you were Multinational Company, would you invest in that country? Explain your answer. 

Content summary:

a) Political – 1 page

b) Economic – 3 pages

c) Socio-cultural – 2 pages

d) Technological development – 1 page

e) References – 1 page

Total: 8 pages

Formatting guidelines:

The PEST analysis must be 7 pages of content and 1 page of references. Do not include a cover/title page. You must cite the book and all external sources provided in this syllabus using APA style formatting. Use Times New Roman 12, double-spaced. Do not cite Wikipedia or Investopedia! Other reliable sources are national newspapers, official government websites, business magazines such as,, Harvard Business Review, and The Economist. To be successful, make sure you address all the issues described above. Before submitting the PEST analysis, carefully read the rubric on Moodle.

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