Rodriguez: Trade is Mexico's Biggest Worry With Trump Win

The transcript discusses the global surprise and uncertainty following Trump's election, focusing on Mexico's economic challenges and responses. The Mexican Central Bank's actions to stabilize the peso, concerns over trade and migration, and the impact on foreign direct investment are highlighted. Mexico's fiscal reforms and the potential effects of Trump's policies on trade and investment are also examined.

What was the initial reaction of the Mexican Central Bank to the peso's devaluation after Trump's election?

• They devalued the peso further.

• They sold off foreign reserves.

• They decided not to intervene initially.

• They immediately increased interest rates.

What was the Mexican Central Bank's action a week after the peso's initial fall?

• They decreased interest rates.

• They intervened in the currency market.

• They increased interest rates by 50 basis points.

• They requested a bailout from the IMF.

What is the primary concern for Mexican officials regarding the Trump administration?

• The increase in U.S. tariffs.

• The construction of the wall.

• The potential deportation of Mexican citizens.

• The impact on trade relations.

What is a secondary concern for Mexican officials besides trade?

• The rise in oil prices.

• The potential increase in U.S. tariffs.

• The human rights of Mexicans in the U.S.

• The impact on tourism.

How did Mexico attempt to address its economic challenges related to oil prices?

• By increasing oil production.

• By implementing a fiscal reform.

• By borrowing more from international markets.

• By cutting public spending drastically.

What is a potential consequence of the uncertainty in trade policies for Mexico?

• Increased foreign direct investment.

• A surge in new factory announcements.

• A chill on foreign direct investment.

• Stability in the peso's value.

What example is given of a U.S. company's decision regarding investment in Mexico?

• A company decided not to move a production line to Mexico.

• A company increased its investment in Mexican infrastructure.

• A company canceled all its operations in Mexico.

• A company decided to open a new plant in Mexico.