Editing Guadalajara (section)

== Economy ==

[[File:Glorieta de los Caballos y Hotel Riu Plaza 2013.jpg|thumb|upright|Riu Plaza Hotel, the tallest skyscraper in the city]]

Guadalajara has the third-largest economy and industrial infrastructure in Mexico<ref name="atlanta">{{cite journal |author= Jalisco Ministry of Tourism |date=2009-08-29 |title= Jalisco Leads in Mexico's Tourism Recovery and Hosts the 2009 North American Leaders' Summit |journal=Leisure & Travel Week |page=10 |location=Atlanta, Georgia}}</ref> and contributes 37% of the state of Jalisco's total gross production. Its economic base is strong and well-diversified, mainly based on commerce and services, although the manufacturing sector plays a defining role.<ref name="moodys">{{cite journal |author= Moody's |date=2008-04-16 |title= Moody's Assigns Issuer Rating Of A1.MX To The Municipality of Guadalajara, Jalisco |journal=Info – Prod Research (Middle East) |location= Ramat-Gan}}</ref> It is ranked in the top ten in Latin America in [[gross domestic product]] and the third-highest ranking in Mexico.

In its 2007 survey entitled "Cities of the Future", ''[[FDi magazine]]'' ranked Guadalajara highest among major Mexican cities and designated Guadalajara as having the second strongest economic potential of any major North American city behind [[Chicago]]. ''FDI'' ranked it as the most business-friendly Latin American city in 2007.<ref name="FDI">{{cite journal |title=Cities of the Future |journal=FDi Magazine |url= http://www.fdimagazine.com/cp/13/Cities%20of%20the%20Future%20%20April%2023rd%20press%20release.doc |access-date=2007-05-11 |archive-url= https://web.archive.org/web/20090916182420/http://www.fdimagazine.com/cp/13/Cities%20of%20the%20Future%20%20April%2023rd%20press%20release.doc |archive-date=2009-09-16 |url-status=dead }}</ref> The same research noted Guadalajara as a "city of the future" due to its youthful population, low unemployment and large number of recent foreign investment deals; it was found to be the third most business-friendly city in North America.<ref name="FDI"/>

In 2009 [[Moody's Investors Service]] assigned ratings of Ba1 (Global Scale, local currency) and A1.mx (Mexican national scale). During the prior five years, the municipality's financial performance had been mixed but had begun to stabilize in the latter two years. Guadalajara manages one of the largest budgets among Mexican municipalities and its revenue per capita indicator (Ps. $2,265) places it above the average for Moody's-rated municipalities in Mexico.<ref name="moodys"/>

The city's economy has two main sectors. Commerce and tourism employ most: about 60% of the population. The other is industry, which has been the engine of economic growth and the basis of Guadalajara's economic importance nationally even though it employs only about a third of the population.<ref name="encmuc"/><ref name="moodys"/><ref name="econgob"/> Industries here produce products such as food and beverages, toys, textiles, auto parts, electronic equipment, pharmaceuticals, footwear, furniture and steel products.<ref name="encmuc"/><ref name="econgob"/>

Two of the major industries have been textiles and shoes, which are still dynamic and growing.<ref name="bosque">{{cite web|url= http://www.elbosqueindustrialpark.com/guadalajara-industry-economy.shtml |title=El Bosque Industrial Park |publisher=El Bosque Industrial Park |location=Guadalajara, Mexico |language=es |access-date=January 24, 2010 |url-status=dead |archive-url= https://web.archive.org/web/20090923184321/http://www.elbosqueindustrialpark.com/guadalajara-industry-economy.shtml |archive-date=September 23, 2009 }}</ref> Sixty percent of manufactured products are sold domestically, while forty percent are exported, mostly to the United States.<ref name="ijalti">{{cite web |url= http://www.ijalti.org.mx/video/video.html |title= Jalisco IT |publisher= IJALTI Jalisco |location= Guadalajara, Mexico |access-date= January 24, 2010 |url-status= dead |archive-url= https://web.archive.org/web/20090914101021/http://www.ijalti.org.mx/video/video.html |archive-date= September 14, 2009 }}</ref> This makes Guadalajara's economic fortunes dependent on those of the U.S., both as a source of investment and as a market for its goods.<ref name="rnorvell">{{cite journal |last=Norvell |first=Robin |date=December 2005 |title= Guadalajara Winning Back Business from Asia |journal=Circuits Assembly |volume=16 |issue=12 |page=6 |location=San Francisco, California}}</ref>

The city has to compete with China, especially for electronics industries which rely on high volume and low wages. This has caused it to move toward high-mix, mid-volume, and value-added services, such as automotive. However, its traditional advantage of proximity to the U.S. market is one reason Guadalajara stays competitive.<ref name="rnorvell"/> Mexico ranked third in 2009 in Latin America for the export of information technology services, behind Brazil and [[Argentina]]. This kind of service is mostly related to online and telephone technical support. The major challenge this sector has is the lack of university graduates who speak English.<ref name="lchacon">{{cite news |title= Ocupa México tercer lugar en TI regional |first=Lilia |last=Chacón |newspaper=Reforma |location=Mexico City |date=2009-12-15 |page=7 |language=es |trans-title=Mexico occupies third place in regional IT}}</ref>

=== Technology ===

[[File:Guadalajara-México-Andares-Puerta de Hierro.jpg|left|thumb|[[Puerta de Hierro, Guadalajara|Puerta de Hierro]], financial and commercial centre]]

The electronics and information technology sectors that have nicknamed the city the "[[Silicon Valley]] of Mexico."<ref name="ijalti"/> Guadalajara is the main producer of software, electronic and digital components in Mexico. Telecom and computer equipment from Guadalajara accounts for about a quarter of Mexico's electronics exports.<ref name="rnorvell"/> Companies such as [[General Electric]], [[IBM]], [[Sanmina]], [[Intel]], [[HCL Technologies]], [[Hitachi]], [[Hewlett Packard Enterprise]], [[HP Inc]], [[Siemens]], [[Flextronics]], [[Oracle Corporation|Oracle]], [[Wipro]], [[Tata Consultancy Services]], [[Cognizant Technology Solutions]] and [[Jabil Circuit]] have facilities in the city or its suburbs.<ref name="ijalti"/> This phenomenon began after the passage of the [[North American Free Trade Agreement]] (NAFTA). International firms started building facilities in Mexico, especially Guadalajara, displacing Mexican firms, especially in information technology. One of the problems this has created is that when there are economic downturns, these international firms scale back.<ref name="enclave">{{cite journal |date=Mar–Apr 2008 |title= The enclave economy: foreign investment and sustainable development in mexico's silicon valley |journal=NACLA Report on the Americas |volume=41 |issue=2 |page=46 |location=New York}}</ref>

Guadalajara was selected as "Smart City" in 2013 by IEEE, the world's largest professional association for the advancement of technology.

Several cities invest in the areas of research to design pilot projects and as an example, in early March in 2013 was the first "Cluster Smart Cities" in the world, composed of Dublin, Ireland; San Jose, California; Cardiff, Wales, and Guadalajara, Jalisco, whose objective is the exchange of information and experiences that can be applied in principle to issues of [[agribusiness]] and health sciences.

The Secretariat of Communications and Transportation also reported that Guadalajara, Jalisco was chosen as the official venue for the first "Digital Creative City of Mexico and Latin America", which will be the spearhead for Mexico to consolidate the potential in this area.

The "Cluster Smart Cities" unprecedented in the world, will focus on what each of these cities is making in innovation and the creation of an alliance to attract technology. The Ministry of Innovation, Science, and Technology (SICyT ) of Jalisco, said the combination of talent development investments allows Jalisco to enter the "knowledge economy."

From 25 to 28 October 2015, the city was the venue for the first conference of the Smart Cities Initiative.<ref name="ciudadint">{{cite web |url=http://www.informador.com.mx/economia/2015/622072/6/guadalajara-la-primera-ciudad-inteligente.htm |title=Guadalajara, la primera Ciudad Inteligente |publisher=El Informador |location=Mexico City |language=es |access-date=October 25, 2015 |archive-date=October 26, 2015 |archive-url=https://web.archive.org/web/20151026104311/http://www.informador.com.mx/economia/2015/622072/6/guadalajara-la-primera-ciudad-inteligente.htm |url-status=dead }}</ref><ref name="smartcity">{{cite web |url=http://mundocontact.com/guadalajara-primera-ciudad-inteligente-en-america-latina/ |title=Guadalajara, primera 'Ciudad Inteligente' en América Latina |date=April 2014 |publisher=Mundo Contact |location=Mexico City |language=es |access-date=April 1, 2014 |archive-date=24 March 2016 |archive-url=https://web.archive.org/web/20160324191913/http://mundocontact.com/guadalajara-primera-ciudad-inteligente-en-america-latina/ |url-status=live }}</ref>

=== Industries ===

Most of the economy revolves around commerce, employing 60% of the population.<ref name="encmuc"/> This activity has mainly focused on the purchase and sale of the following products: food and beverages, textiles, electronic appliances, tobacco, cosmetics, sports articles, construction materials, and others. Guadalajara's commercial activity is second only to Mexico City.<ref name="econgob"/>

The city is the national leader in the development and investment of shopping malls. Many shopping centers have been built, such as Galeries Plaza, one of the largest shopping centers in Latin America, and Andares. Galerías Guadalajara covers {{convert|160000|m²|2|abbr=on}} and has 220 stores. It contains the two largest movie theaters in Latin America, both with [[IMAX]] screens. It hosts art exhibits and fashion shows and has an area for cultural workshops. Anchor stores includes Liverpool and Sears and specialty stores such as [[Hugo Boss]], [[Max Mara]], [[Lacoste]], [[Tesla Motors]], [[Costco]].<ref name="nosotros">{{cite web|url= http://galeriasguadalajara.com/01/index.php?option=com_content&view=article&id=48&Itemid=51|title=Nosotros |publisher=Galerias Guadalajara |location=Guadalajara Mexico |language=es |trans-title=Us |access-date=January 24, 2010 |url-status=dead |archive-url= https://web.archive.org/web/20100124104856/http://www.galeriasguadalajara.com/01/index.php?option=com_content&view=article&id=48&Itemid=51 |archive-date=January 24, 2010}}</ref> Best Buy opened its first Guadalajara store here. It has an additional private entrance on the top floor of the adjacent parking lot. Another Best Buy store was inaugurated in Ciudadela Lifestyle Center mall, which was the chain's third-largest in the world, according to the company.

[[File:Zapopan.jpg|thumb|left|Andares shopping mall in the [[Puerta de Hierro, Guadalajara|Puerta de Hierro]] ([[Zapopan]]) district]]

Andares is another important commercial center in Zapopan. This $530 million mixed-use complex opened in 2008, designed by renowned Mexican Sordo Madaleno architecture firm features luxury residences and a high-level mall anchored by two large department stores, Liverpool and El Palacio de Hierro. The 133,000 m<sup>2</sup> (1,400,000+ sq ft) mall offers hundreds of stores, a big food court located on the second floor, and several restaurants at the Paseo Andares.

A large segment of the commercial sector caters to tourists and other visitors. Recreational tourism is mainly concentrated in the historic downtown.<ref name="encmuc"/> In addition to being a cultural and recreational attraction and thanks to its privileged geographical location, the city serves as an axis to nearby popular beach destinations such as [[Puerto Vallarta]], [[Manzanillo, Colima|Manzanillo]] and [[Mazatlán]].<ref name="econgob"/> Other types of visitors include those who travel to attend seminars, conventions and other events in fields such as academic, entertainment, sports, and business. The best-known venue for this purpose is the Expo Guadalajara, a large convention center surrounded by several hotels. It was built in 1987, and it is considered the most important convention center in Mexico.{{by whom|date=December 2015}}

=== Foreign trade ===

Most of Guadalajara's economic growth since 1990 has been tied with foreign investment. International firms have invested here to take advantage of the relatively cheap but educated and highly productive labor, establishing manufacturing plants that re-export their products to the United States, as well as provide goods for the domestic Mexican market.<ref name="jeades">{{cite book |last1=Eades |first1=J |title=Migrants Workers and the Social Order |url=https://books.google.com/books?id=j2o9AAAAIAAJ&q=Guadalajara+economy&pg=PA42 |access-date=January 24, 2010 |year=1987 |publisher=Tavistock Publications |location=New York |page=42 |isbn=0-422-61680-X |archive-date=25 September 2023 |archive-url=https://web.archive.org/web/20230925164926/https://books.google.com/books?id=j2o9AAAAIAAJ&q=Guadalajara+economy&pg=PA42 |url-status=live }}</ref>

A media report in early October 2013 stated that five major Indian IT (information technology) companies have established offices in Guadalajara, while several other Indian IT companies continue to explore the option of expanding to Mexico. Due to the competitiveness in the Indian IT sector, companies are expanding internationally and Mexico offers an affordable opportunity for Indian companies to better position themselves to enter the United States market. The trend emerged after 2006 and the Mexican government offers incentives to foreign companies.<ref>{{cite news|title=Guadalajara is now an outpost for Indian IT firms|url=http://qz.com/129867/guadalajara-is-now-an-outpost-for-indian-it-firms/|access-date=3 October 2013|newspaper=Quartz|date=2 October 2013|author=Dale Quinn|archive-date=2 October 2013|archive-url=https://web.archive.org/web/20131002204048/http://qz.com/129867/guadalajara-is-now-an-outpost-for-indian-it-firms/|url-status=live}}</ref>

Exports from the city went from US$3.92 billion in 1995 to 14.3 billion in 2003.<ref name="econgob">{{cite web |url= http://business.guadalajara.gob.mx/infraestructura/economy.html |title= Economy |publisher=Government of Jalisco |location=Guadalajara, Mexico |access-date=January 24, 2010 |archive-url = https://web.archive.org/web/20060312172852/http://business.guadalajara.gob.mx/infraestructura/economy.html |archive-date = March 12, 2006}}</ref> From 1990 to 2000, socio-economic indicators show that quality of life improved overall; however, there is still a large gap between the rich and the poor, and the rich have benefited from the globalization and privatization of the economy more than the poor.<ref name="jharner">{{cite web |url= https://www.britannica.com/bps/additionalcontent/18/26998979/Globalization-of-Food-Retailing-in-Guadalajara-Mexico-Changes-in-Access-Equity-and-Social-Engagement |title= Globalization of Food Retailing in Guadalajara, Mexico: Changes in Access Equity and Social Engagement |first=John |last=Harner |publisher= Department of Geography and Environmental Studies University of Colorado at Colorado Springs |location=Colorado Springs, Colorado |access-date=January 24, 2010}}</ref>

International investment has affected the labor market in the metro area and that of the rural towns and villages that surround it. Guadalajara is the distribution center for the region and its demands have led to a shifting of employment, from traditional agriculture and crafts to manufacturing and commerce in urban centers. This has led to mass migration from the rural areas to the metropolitan area.<ref name="jeades"/>