Open manufacturing plant in Mexico Assignment Example | Topics and Well Written Essays - 500 words

Open manufacturing plant in Mexico - Assignment Example herefore, the Packenham Model enhances the efficient and effective evaluation of the economic and political environment of Mexico for utmost economic reform. The Packenham Model explains four hypotheses that enable Mexico to make successful economic reforms. The first hypothesis is the Structure of Situation for the Elected President (Political Credentials of President). A President having negative credentials or bad motives will hinder implementation of successful economic reforms. The Mexican president, Enrique Pena Nieto of the Partido Revolucionario Institutional is a legitimate president with positive credentials. He focuses on the implementation of the ambitious structural reforms and reactivating economic growth after poor start thus enhancing initiation of a successful economic reform. The second hypothesis is the Political Party System (Fragmented vs. Consolidated). The political party system of Mexico is fragmented since it has more than one party. The ruling party faces high resistance from the opposition during implementation of reforms especially in the energy sector. The third hypothesis is the Presidential Leadership (Lead ership Skill). President Pena Nieto is politically skillful hence; he is able to convince the congress into making useful reforms. Finally, Consensus in Civil Society- the Mexicans are often in favor of market reforms and there is low resistance. Therefore, there is utmost implementation of market reforms with ease. It is evident that the economic and political environment of Mexico is conducive for utmost implementation of market reforms as justified by the Packenham Model above. Bargaining power refers market forces that determine the prices of the commodities. Bargaining involves negotiation of prices between the buyers and the sellers of goods and services. The firm should set the prices that are suitable for the consumer and is friendly to the producer through the bargaining power. If the company imposes the charge to the