Despite significant obstacles, like a national drug war, worldwide recession, and a decline in oil production investments in Mexico have continued to grow. In 2007 Mexico was just ranked 19th as an appealing foreign market to invest in, yet by 2010 it had sky rocketed to an impressive number 8.
Mexico indeed has it's problems. However, the country still attracts commerce from American companies looking to lower operating costs. Additionally, as the world economy improves more investments is expected. The United States is the leader when it comes to investing in Mexico, having increased by 400% over the last fifteen years.
In fact, China has become a popular place for American investments, yet Mexico has that closeness attached to it. In other words, Mexico is right on our doorstep. NAFTA and other trade agreements have served to boost commerce and investments in Mexico. Services have overtaken manufacturing in FDI, foreign direct investments in Mexico, and a great increase for the lodging sector is expected.
An instance of increased commerce into Mexico is when General Motors announced in January, 2011 an investment of $540,000,000 to produce it's new 4 cylinder engines. Mexico would also profit from the expected 500 employees that will be hired. Naturally, GM could conduct business anywhere in the world, yet they have chosen Mexico for their commerce. This action adds credibility to Mexico and it's work force.
Mexico is actively seeking more Chinese investment and commerce. Their rationale being, their close proximity to the American market can eliminate long shipping delays which regularly happen between the United States and China. In a sense, Mexico is trying to act as a go-between, between China and the United States.
As an extra benefit, Mexico could bypass California as China’s entry point to the American market, and drive their products by truck. Plus, Mexico has many free trade agreements, allowing China a tariff free environment to conduct commerce. While China and Mexico do have agreements in place; Mexico continues to pitch in unique physical closeness to the American market to Chinese companies.
Mexico, despite considerable struggles with the worldwide recession and an ugly drug war has managed to steadily increase the foreign investment it receives. Even GM has announced a new investment to build new 4 cylinder engines for its cars. Mexico would benefit from 500 new jobs. NAFTA has helped to increase investment and business into Mexico.
ProMexico is the Mexican Government institution in charge of strengthening Mexico’s participation in the international trade (
comercio). With this objective in mind, the institution supports the export activity of companies established in the country and co-ordinates actions to attract foreign direct investment to national territory. ProMexico was established on June 13, 2007, as a sectoral public trust under the Ministry of the Economy, and operates through a network of 25 offices throughout Mexico and more than 27 offices abroad. Visit the website
http://www.promexico.gob.mx to know more.
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