Despite some adverse conditions facing Mexico at the moment (cough Trump cough), the Mexican government has kept up its steady promotion of the country as a destination for foreign direct investment. A couple of high-profile investments in the automotive industry appear to have been waylaid by threats or uncertainty over the future of NAFTA, but overall large foreign companies with long-term strategies for the Americas continue to establish new Mexico operations or expand existing ones. Within this context, we once again took a look at the less-heralded flip side of Mexico FDI – investment by Mexican companies in other countries. Continue reading Big Mexican companies keep investing abroad
We were positively gobsmacked when the news hit that the British electorate had voted to leave the European Union in the UK referendum held June 23, 2016. We should add that when new Prime Minister Theresa May subsequently named Boris Johnson Foreign Secretary, we were whatever comes after gobsmacked in the hierarchy of silly English expressions, but we’ll save that topic for another post. Not being stuffy pensioners in the Midlands, our prime concern over Brexit is the historical context for peace and prosperity in a unified Europe, and by extension the world. After all, the history of Europe is largely the history of thousands of years of uninterrupted warfare until the EU’s monumental attempt to pacify the region through cooperation following World War II. A handful of billion Euros here and there seems like a small price to pay for the opportunity for peace in Europe, but hey, what do we know here in the tropics. In any case, as British millennials figuratively jumped off the roof in the aftermath of the vote, we naturally began wondering how Brexit would affect us in Mexico, despite being neither British nor European.
In past posts, particularly comparing Mexico to Brazil, we have noted how Mexico historically has shied away from seeking a high profile role in the international community. As a top-20 economy and major exporter, Mexico could be forgiven for raising its aspirations, as Brazil seemed to do during its recent run in the economic limelight. Particularly with President Peña’s major push to attract foreign investment over the past two years, now might be the time for some calculated moves to increase Mexico’s international role. If the current administration harbored any notions of this type, however, they are likely stalled for the moment, what with recent news coverage dominated by tales of corruption and violence. Nonetheless, as Mexican political leaders continue to treat foreign adventures with trepidation, Mexican businesses appear to be finding ever more sure footing abroad. Continue reading Mexican companies investing abroad with gusto