Mexico indeed has it’s issues. However, the country still attracts commerce from American companies seeking to lower operating costs. Additionally, as the world economy improves more investments is expected. The United States is the leader when it comes to making investments in Mexico, having increased by 400% over the last fifteen years.
Certainly, 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 increase commerce and investments in Mexico. Services have overtaken manufacturing in FDI, foreign direct investments in Mexico, and an incredible increase for the lodging sector is expected.
An example of increased commerce into Mexico is when General Motors announced in January, 2011 an investment of $540,000,000 to make its new 4 cylinder engines. Mexico will also profit from the expected 500 employees that will be hired. Naturally, GM can conduct business anywhere on the earth, yet they have selected Mexico for their commerce. This action adds credibility to Mexico and it’s work force.
Mexico is actively seeking a lot more Chinese investment and commerce. Their rationale being, their close proximity to the American market can eliminate long shipping delays that frequently occur between the United States and China. In a sense, Mexico is looking to act as a go-between, between China and the United States.
As an added advantage, Mexico can bypass California as Chinas entry point to the American market, and drive their products by truck. Plus, Mexico has many free trade agreements, enabling China a tariff free environment to…