Mexican Economic Law: Principles and Regulatory Framework

Economic Law Fundamentals

Economic Law is the body of law derived from the federal constitution whose mission is to regulate economic activity. Mexico operates under a neoliberal model. This encompasses the set of rules and principles governing public authorities in economic activities.

Key Features

Its features include a humanistic, dynamic, complex, national and international, concrete, multidisciplinary, and interdisciplinary approach. It serves as both a micro and macro economic and social tool for change.

Century Transformations

The major transformations of the century include:

• Globalization
• Integration
• Erosion of the national state
• Pre-eminence of market knowledge revolution
• Internationalization of services
• Industrial deployment
• Climate change

A company is classified as an individual or family enterprise or a corporate or legal entity.

Characteristics of Globalization

These include:

• Increased international trade and the gradual elimination of barriers.
• Capital mobility and foreign direct investment.
• Adoption of new technologies, etc.

Natural Resources

These are all elements provided by nature which man uses in order to satisfy their material needs.

Budget Characteristics

Characteristics of budgets include:

• The sole responsibility of the State (Edo).
• Rule of law.
• An annual budget of complex legal nature.
• Budget unit.
• The principle of universality.
• Principle of non-allocation of resources.
• Specification of charges.

Phases of the budget include preparation, punishment, execution, and control.

Monetary Tools

Rediscount consists of the acquisition by the monetary authority of securities or effects previously discounted by banks.

Economic Systems

An economic system is the set of structures, relationships, and complex instruments that resolve the contradiction between unlimited individual and collective needs and scarcity.

Scarcity Principles

Systems based on scarcity principles include:

• Liberal capitalist
• Socialist collective
• Mixed dual

Policy Types

Quantitative Policy involves legal instruments or mechanisms in a normative order that can be used by changing parameters or levels without altering the functioning of the economic system.

Qualitative Policy is considered to be those which lead to structural changes in the economy, without affecting the basic paradigms of a particular social economic system.