This case is about the economy of Mexico as of 2018, and particularly the challenges it faces with respect to managing its currency and inflation, the renegotiation of NAFTA, and long-term growth. The case updates students on the current economic situation in Mexico, helps students weigh the economic pros and cons of protectionism via the classic tariff supply-and-demand diagram, and encourages students to apply to Mexico previous lessons on growth, stability, and stabilization. It is designed to be used in the latter half of a first-year MBA course on international economics as an application of earlier key concepts and models (e.g., the Solow growth model, open economy IS/LM model, and balance of payments). However, while the case presupposes some knowledge of macroeconomic data, it is written to be standalone and thus could also be employed in an advanced undergraduate or master's level course on international macroeconomics or finance.
