The Changing Face Of Foreign Investment In Mexico

Mexico has had a rather tough relationship with foreign investment

, particularly with its near neighbor the US. This issue has partly been caused by political problems which left the state isolated, partially due to economic policies which were intended to dishearten foreign investment. These policies incorporated limiting the amount of shares an overseas company might hold in the Mexican business, heavy taxation, and charges for producing some products. Even though Mexico had lots of gold and gemstones available for mining, there was negligence on the part of foreign investors to commit to the procedure.

In the 1990s, Mexico started to go into the NAFTA treaty and initiated a series of policies referred to as the Washington Consensus. Such policies included liberation of the restrictions on trade and foreign investment with an increasingly limited economic policy which inspired private businesses to grow. The thought was that foreign direct investment would be prompted to move into Mexico in order to produce items close to North America. In part, this policy has worked, as there is now larger foreign investment in Mexico than at any time as the early 20th century.

Several of the businesses choosing to make investments in Mexico were keen on manufacturing and particularly in the making of electronics and IT goods. It has increased exports to the US significantly and there has also been a rise in the quantity of producing jobs opening up in Mexico because of this foreign investment in manufacturing. Although there has been limited growth in Mexican-owned factories and IT businesses, there has been increases in recent times and suggests that as more mature individuals move out of working in foreign corporations, they are beginning to set up small businesses for themselves.

Mexico has, in fact, become a significant contributor to the wealth of IT products that are currently available and it is in a great position to react to the demands of South American countries for IT devices. For this reason, information technology is top of the list for foreign investment as suppliers find it simple to manufacture their goods and then sell it on Mexico's open market or in different places of South America. After all, into realm of IT, Mexico has become one of the biggest receivers of direct foreign investment, a feature which has increased since the Mexican government introduced policies targeting IT investment and bringing new investors into the country on a regular basis.

There are currently more opportunities to make investments in Mexico than ever and any foreign company wishing to introduce IT business into the nation is sure to be welcomed.

by: Royal Curling

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