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Monday, June 4, 2012

Know More About The Rising Investments In Mexico

Despite significant hurdles, such as 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 appealing foreign market to invest in, yet by 2010 it had sky rocketed to an impressive number 8.

Mexico does indeed have its problems. Nevertheless, the nation 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 making investments in Mexico, having increased by 400% over the last fifteen 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 dir ect investments in Mexico, and an incredible 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 make its new 4 cylinder engines. Mexico will also profit from the expected 500 employees that would be hired. Naturally, GM could 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 a lot more Chinese investment and commerce. Their rationale being, their close proximity to the American market could get rid of long shipping delays that normally 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 additional benefit, Mexico can bypass California as China's entry point to the American market, and drive their products via truck. In addition, Mexico has many free trade agreements, enabling China a tariff free environme nt to conduct commerce. While China and Mexico do have agreements in place; Mexico continues to pitch in exclusive physical closeness to the American market to Chinese companies.

Mexico, regardless of significant 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 its cars. Mexico will benefit from 500 new jobs. NAFTA has helped to increase investment and business into Mexico.

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