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Foreign Investment Plans in Mexico

By Royal Curling Subscribe to RSS | April 5th 2012 | Views:
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The role of foreign investment within Mexico has been building up since the 1970s, and is now one among the most vital options of GDP in the country. With increased foreign investors discovering that Mexico has a lot to offer than other places like China or Malaysia, the South American country has become one of the preferred destinations of those looking to become a global business through foreign investment. Mexico has had an uncomfortable ride from opposition within its own nation, fearing that foreign direct investment may result in a displacement of national resources, loss of revenue for Mexican businesses, and the creation of an investment enclave which has no interaction with the domestic economy.

These fears are somewhat realized by the slowdown in the development of home-grown companies within Mexico, however there have also been many advantages received from foreign investment that has encouraged the South American country to encourage extra interest from global businesses. Maybe the most important benefit is that of economic growth, that has increased productivity through new jobs and advances in technology and engineering. This advance is reflected within the increasing numbers of young individuals leaving Mexican universities with technology or engineering degrees.

Capital and domestic economy have even seen increases due to foreign investment in Mexican industry, and this has allowed the country to unify into the worldwide economy with very little effort. This step into the global market has also been inspired by Mexican trade agreements and investments, which has allowed foreign investors to reach further into South America from bases in Mexico.

Foreign investment has also been inspired by the reduction in the fees incurred through importing and exporting to and from a Mexican factory, speeding the expansion of foreign direct investment in the country. In fact, it has been established that a large percentage of the direct investment in Mexico is connected to this ability to export easily.

Most foreign investment in Mexico falls under the FI Law, that was enacted by Mexico in 1993. The law is meant to promote foreign businesses to make investments in the nation whereas preventing the stripping of mineral and technological resources from the country. The law has been reformed many times so as to confirm that investors are encouraged to place cash in Mexico, and in particular to encourage investment from the US. The United States of America is in close proximity with Mexico, and they share a number of things including time zones, transportation links, and contacts within other countries in the Americas.

Royal Curling - About Author:
To find a lot of facts on the current state of foreign investment (inversion extranjera) companies within Mexico, go to the website http://www.economia.gob.mx today. Economia is the government branch in charge of estimulating the economy in Mexico by helping Companies, small, medium and large. And it's also in charge of attracting foreign direct investment. The Mexican Government is determined to pave the way for local businesses to increase development and growth. Based on the National Plan Development 2007-2012 issued by the Mexican President Felipe Calderon, active plans are in place to promote the economic growth of the nation. To learn more about how the Mexican Ministry of Economy can be extremely helpful to local and foreign businesses alike, please visit the website today!

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