Separating Fact from Fiction: Why the Peso Devaluation is a Competitive Advantage for Mexican Manufacturing

“The peso devaluation has increased Mexico’s competitive advantage, and I think the long-term decline of the peso…gives confidence to firms that want to move to Mexico.”

Economists and small manufacturers alike are taking a wait-and-see approach to the new Trump administration. For Mexico, the continued devaluation of the peso raises additional questions. In this podcast, economist and author Joe Atikian takes time to separate fact from fiction when it comes to the declining peso’s effect on the Mexican and US economies.

Atikian, author of “Industrial Shift: The Structure of the New World Economy,” explores:

  • The three most important aspects of the peso devaluation that manufactures should consider: investments, purchasing decisions and recurring transactions.
  • The issues behind Mexico’s peso devaluation, including the low price of oil and the relative strength of the US economy.
  • Why popular perceptions of weak currencies aren’t always on the mark.
  • Whether Mexico has an advantage over other currencies, such as the yen, among cost-competitive manufacturing locations?