The ongoing globalization offers opportunities as well as risks. No single economy in the world is immune to these challenges. The results of more integration with international markets offers advantages. But also higher exposure to risks.
The recent report "Latin America copes with volatility, the dark side of globalization" by the World Bank studies the effects of the new intertwined world economy. It highlights the dangers, but also describes countries' capacity to deal with uncertainty.
For example, 80 percent of Mexico's exports go to the US. Consequently, a serious delay in US economic growth would severely damage the Mexican economy. However, the country is not vulnerable with regard to the economic situation in Europe or China. Together with it's good capacity to respond to economic shocks, Mexico seems well prepared for the upcoming turbulent years.
Read the full report Mexico: Well Equipped to Cope with Global Risks >>