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The Security Crisis In Mexico And Its Impact On Business Management

Author

Listed:
  • Mario Aguilar
  • Emigdio Archundia
  • Rafael Regalado

Abstract

In Mexico, antisocial behavior affects and concerns the population. This behavior has produced a vicious circle involving a high rate of criminality. This, in turn discourages investment, and reduces economic growth, it causes unemployment and increases poverty and economic inequality. Official databases reveal that during the last five years, the number of people murdered by organized criminals has increase to more than sixty thousand. With a population of over 112 million residents, Mexico has 52 million people living in poverty conditions. Seven million young people called ninis (ni estudian, ni trabajan) don’t work or study. Business executives have reduced production levels with the purpose of reducing losses and criminal acts. Companies have closed because of antisocial acts and because of a lack of funds. During 2011 over one hundred and sixty thousand companies shut down in Mexico because of organized crime, according to the Employers’ Confederation of the Mexican Republic (Coparmex).

Suggested Citation

  • Mario Aguilar & Emigdio Archundia & Rafael Regalado, 2013. "The Security Crisis In Mexico And Its Impact On Business Management," Review of Business and Finance Studies, The Institute for Business and Finance Research, vol. 4(2), pages 29-47.
  • Handle: RePEc:ibf:rbfstu:v:4:y:2013:i:2:p:29-47
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    More about this item

    Keywords

    Legal Economic;

    JEL classification:

    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • N6 - Economic History - - Manufacturing and Construction
    • N86 - Economic History - - Micro-Business History - - - Latin America; Caribbean

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