global economy operation

Even the smallest corporation is involved in the global economy, and the fate of the planet inevitably affects how the company conducts business. If the global market is competitive, the technology of the local industry plays a part. The global economy has a huge effect on the competitiveness of the Mexican firm, and protection is clearly a priority that each shareholder faces. To remain viable in this vast, complex, and highly competitive global market, the organization must provide a proper risk-mitigation architecture.
Since they all face the same risks when doing business, all companies working in the world economy are interconnected. The risks that the United States firms face is not different from those faced by Mexico. The risks include the issues to do with regulations and compliance. It doesn't matter the size of the firm and the nature of the business they engage in; regulations that govern the business must be complied with. Secondly, the problem that exists in the global economy is communication and technology. Technogym keeps on changing, and if a firm doesn't adjust its processes to adopt the new emerging technology, it faces risks of being driven out of the market. The emerging technology is usually too expensive.

Mexico and the United States have been key trading partners in the many years; this arises from the land border and maritime that the countries share and the treaties that have been signed by the two nations bilaterally. The USA has the largest and most technologically advanced economy in the world while the Mexican economy is 1.3 trillion dollar economy that increasingly focused on manufacturing since the NAFTA trade agreement came into force. The United States is a more diversified economy with the largest industrial outputs and highly diversified technology, unlike Mexico which highly relies on the agricultural and manufacturing sector.

References

The Ascent of Money Episode 3: Risky Business | Ascent of Money | PBS. (2017). The Ascent of Money. Retrieved 21 March 2017, from http://www.pbs.org/wnet/ascentofmoney/featured/the-ascent-of-money-episode-3-risky-business/97/