Final answer:
PEMEX, Mexico's state-owned oil company, was established after the nationalization of the oil industry in 1938 and is Latin America's second largest company after Brazil's Petrobras.
Step-by-step explanation:
The country that has PEMEX as its state-owned oil company and is Latin America's second largest company is Mexico. PEMEX, which stands for Petróleos Mexicanos, was established following the nationalization of oil production in Mexico in 1938 by President Lázaro Cárdenas.
This move invoked the 1917 Mexican Constitution, which declared that the nation held ownership of all the subsoil assets, including petroleum.
Despite objections from foreign corporations at the time, such as Royal Dutch Shell and Standard Oil, PEMEX flourished and has played a critical role in Mexico's economic development. Moreover, by 2009, PEMEX had become Latin America's second largest corporation, behind Petrobras from Brazil.