Mexico Trade Pattern (1550 words)

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There are many theories of international trade which could be used to explain the trade patterns of Mexico over the last 10 years. The Data collected on the imports and exports of Mexico over the last 10 years clearly shows that Mexico has an abundant source of Petroleum Oils, Oils from Bituminous Minerals, Crude petroleum and the major exports from Mexico had been crude petroleum over the last 10 years. This can be explained using the absolute advantage model as given by Adam Smith as Mexico has abundant oil resources which give it absolute advantage in exporting crude oil to other countries. It can also be explained using comparative advantage clearly as given by David Ricardo, as Mexico has comparative advantage in extraction of crude oil than the production of other products in the country...

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