Know More About The Rising Investments in Mexico

Despite significant hurdles, like a national drug war, worldwide recession, and a decline in oil production investments in Mexico have continued to increase. In 2007 Mexico was only ranked 19th as an attractive foreign market to invest in, yet by 2010 it had sky rocketed to an impressive number 8.

Mexico indeed has its problems. Never the less, the country still attracts commerce from American companies seeking to lower operating costs. In addition, 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 15 years.

Certainly, China has become a desirable 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 a huge increase for the lodging sector is likely.

An example of increased commerce into Mexico is when General Motors announced in January, 2011 an investment of $540,000,000 to produce its new 4 cylinder engines. Mexico will also benefit 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 its 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 that frequently occur 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 added benefit, Mexico can bypass California as China’s entry point to the American market, and drive their products via 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 significant 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 will benefit from 500 new jobs. NAFTA has helped to increase investment and business into Mexico

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