FDI in Mexico Essay -- essays research papers fc

. 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, orthogonal Direct investiture 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). a.Mexican International Relations Synopsis Mexico 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 state turned this law into everything but a promotion law. By 1989, 10 years later, a new principle came. Politicians were surprised by the contradictions between the regulation and the law the regulation opened significantly Mex ican 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 (Prez-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 its frontiers to international markets by signing bilateral agreements with different countries. No country in the world has signed more free trade agreements Mexico has celebrated bilateral agreements with 32 countries from different areas, including the two biggest markets in the world the US and EU. Altogether these countries turn up a market of about 850 million consumers that is set to increase with the new agreement with Japan. Much of the FDI in Mexico is attracted by the countrys strategic location in North American Free Trade Agreement, which has positioned it as a launch pad to the US and Canada.AgreementCo untriesPublication Coming into effectivenessNAFTAUnited States and Canada20/12/199301/01/1994FTA-G3Colombia and Venezuela9/01/1995&nb... ...ce. All in all, not all responsibility lies on the Congress, but on each one of the Mexicans, the cloistered Initiative, and the Government in general, in turn to drive the realization of all changes needed.BIBLIOGRAPHYPerez-Moreno, Lucia. Inversion Extranjera Directa. Expansion 22 Apr. 1998.Reforma www.reforma.comCordoba, Mayela. Padece Paradojas el sector Energia. Reforma 18 Oct. 2004.Dussel Peters, Enrique. Hacia donde vamos? Reforma 14 Nov. 2004. Gonzales, Maribel. Frena Terquedad el avance en Mexico. Reforma 29 Sept. 2004.Grupo Reforma. Destacan estabilidad economica de Mexico. Reforma 21 Nov. 2004.Grupo Reforma. Refuta gobierno somos atractivos. Reforma 14 Oct, 2004.Grupo Reforma. Achacan a falta de reformas caida de IED. Reforma 13 Oct, 2004. Melgar, Ivonne. Reconoce ejecutivo perdida de inversion. Reforma 14 Oct. 2004.Mendez, Luis. N iega Gil Perdida de Confianza en Mexico. Reforma 14 Oct. 2004.Ramirez, Clara. Debe Mexico Ponerse las Pilas EU. Reforma 14 Oct. 2004.Sanchez, Manuel. Las condiciones de crecimiento. Reforma 12 Oct. 2004.Mexican Economic Department www.se.gob.mx Mexican Foreign Relations Department www.sre.gob.mx