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Tuesday, May 29, 2012

Know More About The Rising Investments In Mexico - Business

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

Mexico does indeed have its problems. 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 15 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 huge 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 even profit from the expected 500 employees that would be hired. Naturally, GM can conduct business anywhere on earth, yet they have selected Mexico for their commerce. This action adds credibility to Mexico and it's work force.

Mexico is actively looking for more Chinese investment and commerce. Their rationale being, their close proximity to the American market can get rid of long shipping delays which normally 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 additional benefit, Mexico could bypass California as Chinas entry point to the American market, and drive their products via truck. Additionally, Mexico has many free trade agreements, enabling 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, in spite of considerable struggles with the worldwide recession and an ugly drug war has been able to steadily increase the foreign investment it gets. Even GM has announced a new investment to build new 4 cylinder engines for it's cars. Mexico would profit from 500 new jobs. NAFTA has helped to increase investment and business into Mexico.

ProMexico is the Mexican Government institution in charge of strengthening Mexicos 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 to know more.

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