Fdi in MexicoEssay title: Fdi in Mexico. FDI IN MEXICOTo begin describing how has been the growth and progress of FDI in Mexico it is important to define FDI itself. According to the OECD Economic Outlook of 2003, Foreign Direct Investment is “an activity in which an investor resident in one country obtains a lasting interest in, and a significant influence on the management of, an entity resident in another country. This may involve either creating an entirely new enterprise or, more typically, changing the ownership of existing enterprises (via mergers and acquisitions)” (157).
Mexican International Relations SynopsisMexico first opened its market in 1973 with a law that promoted Mexican investment and regulated the entry of foreign investment. However, the barriers and limitations it stated turned this law into everything but a promotion law. By 1989, 10 years later, a new regulation came. Politicians were surprised by the contradictions between the regulation and the law: the regulation opened significantly Mexican doors to foreign investment. Four years later, with the leadership of President Salinas de Gortari, a new Law for Foreign Investment was formulated, stating clearer conditions for foreigners (PĐąrez-Moreno). From this point on Mexico starts simplifying procedures and other guarantees to investors. It is also from this point that Mexico sees the importance of opening
The Mexican government is aware of the importance of creating a framework that will lead to greater international investor investment while opening up trade. It is now a main focus of these policies. But as the economic crisis threatens the very foundations of Mexican society, and so also the economy, the government wants other countries to consider the value of its own resources and the value of its own people and its own policies. In addition to being part of the “common front”, the policies have also been able to reduce corruption, weaken labor unions and make them more visible in national life. According to the Mexican state secretary, Luis Figueiredo, the government has already begun developing the “common front” policies and more is being done as it meets the criteria for entering the “common front” within a certain time frame. In other words, it is preparing the ground for a major deal in a major way. Figueiredo emphasized that the economic problems of a time will also be addressed through implementing a policy of investment in the country where many, many people are affected by the crisis and the government of President Morales has already taken firm steps to achieve that. This statement can be summarized by saying that the government, along with the media, the military, and government departments, have been working on such schemes since 2007. From this point on, Mexico is starting from the lowest level of the list of countries that needs to be given such political and political support for an expansion of the open market. It is important when looking for those sectors that actually have a real advantage over the US, Germany and many others.
The development of a strategy to develop international trade as a positive for the country is also what was highlighted on the Mexican presidential website. “The economy is growing in an orderly fashion; the social safety net is well adjusted; the minimum wage is too high; the national income has been lowered (but still above the average); the infrastructure is strong. There are few small- and medium businesses with much in need of capital”. The country already has a “bigger economy”; it has also the capacity to meet certain international requirements if and when needed. Therefore, Mexico wants to establish infrastructure in its own way. With this, the government’s aim is to get the country ready to meet the demands of a growing American market.
At the same time, the United States and many other countries are looking to expand bilateral trade. Since 2006, the US has introduced new rules and regulations that are also aimed at strengthening the system of the Mexican domestic market. While this has brought a small but substantial expansion in economic development since 2006, there is still a lot work to be done. Since the recession in 2011-12 and the rise of the dollar, Mexicans have made some attempts to increase their exports. However, the US has remained at the top for most of the recession and this increase has been made out of the use of imports to make their products as inexpensive as possible for their consumers. In 2008, after the United States was forced to stop providing American goods to China, it became much harder for Mexican consumers to afford their own. However, despite this change in behaviour, the government still tries its best to introduce tariff barriers to increase the trade with other countries. “The current plan to build a free trade zone of more than